This paper considers the disassembly-to-order (DTO) problem where a variety of returned products are disassembled in order to satisfy the demand for specified numbers of components. The main objective is to determine the optimal number of take-back end-of-life (EOL) products for the DTO system that maximizes the profit. A wide variety of products and subassemblies are considered for disassembly in order to meet the demand of the customers for the different components. Several factors are considered before disassembling any product. Some of the factors include the condition of retuned products, the different number of suppliers offering EOL products, and the quantity discount rate offered by each supplier. Product conditions affect the yield of the products (e.g., older products tend to have a lower yield for usable components). A variety of products with different conditions and prices from a number of suppliers are considered. Finally, suppliers offer quantity discounts in order to increase their competitive edge. We solve this problem by using a model that maximizes the revenue and minimizes the total cost including the cost of acquiring the EOL products, the cost of disassembly, and the cost of disposing excess products and components. When solved, the model provides an optimal ordering policy for the DTO system. An example is considered to illustrate the use of the model.
Disassembly-to-order (DTO), End of life products
Copyright 2008, Surendra M. Gupta
Gupta M. Surendra
Gupta, Surendra M. and Massoud, Amre Z., "Optimal ordering policy in a disassembly-to-order system with limited supply and quantity discount" (2008). . Paper 86. http://hdl.handle.net/2047/d10013593
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