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Coordinated Dynamic Optimization of Inventory Control and Acquisition Management in Hybrid Manufacturing and Remanufacturing Systems

Author: LaiMingHui
Tutor: LiYongJian
School: Nankai University
Course: Management Science and Engineering
Keywords: Hybrid systems Closed-Loop Supply Chain Recycling prices Back to Quality Stochastic Dynamic Programming
CLC: F274
Type: Master's thesis
Year: 2010
Downloads: 141
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Abstract


In current commercial practice, more and more enterprises begin to Jiangzai manufacturing into its own logistics activities, and adopt a market-driven management strategies to recycle recycling recycling products. By recycling management, enterprises can control the recycling products in the quantity and quality uncertainty. Based on these practices, the paper studied in Chapter a complex mix of multi-cycle manufacturing and remanufacturing system in which to return the product depends on the price recovery. For this inventory management and recycling pricing coordinated control problem, we established an objective function is to minimize the total cost of discounted stochastic dynamic programming model to analyze. By convex analysis and dynamic programming iteration obtained analytic structure of the optimal policy. This single optimal solution quality problem structure is composed of four time-dependent parameters to portray. And proven, optimal recovery pricing function is the initial inventory of non-increasing function of the optimal value function is the inventory of state variables continuously differentiable and convex function jointly. Pricing does not exist with a hybrid system compared to the recycling, recycling pricing can reduce manufacturing costs and reduce risk of delayed orders. On the other hand, the optimal price recovery in demand for homogeneous distribution of each period, the decrease over time. In addition to these theoretical analysis, this chapter also studied by numerical experiments mixing system runs under optimal policy effects and verify the theoretical analysis concluded. In the fourth chapter, the original paper stochastic dynamic programming model is extended to recycle products are only two types of high quality and low quality quality level situation. Recycling prices depend on the quality and grade. In this case, the optimal policy structure and types of recycling level of product quality is closely related to the difference between, wherein when the quality differences hour, the optimal strategy is composed of six time-dependent parameters portrayed; while in the case of large differences in quality , the optimal strategy is determined by seven time-dependent parameters to portray. We prove that high-quality and low-quality recycling pricing functions are optimal initial stock value and the non-increasing function of the optimal value function is the initial inventory status continuously differentiable and convex function jointly. In particular, differences in the level of quality can significantly affect production decisions and recovery decisions. When the quality difference is large enough, companies will recover more high-quality recycled products, but to create more new products. This chapter also provides the optimal policy parameter sensitivity analyzes. In addition, this chapter will model is extended to the case of Category 3 quality levels, and find the optimal policy structure. Finally, the chapter also analyzed by numerical experiments optimal strategy's performance, verify the theoretical analysis concluded.

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