The reverse Wagner/Whitin model with variable manufacturing and remanufacturing cost

In this paper, the reverse Wagner/Whitin model is extended to the case with additional variable manufacturing and remanufacturing cost. This model can be regarded as a combination of the classical Wagner/Whitin model and a pu re reverse Wagner/Whitin model with given returns of used products. The com bined model is more appropriate to practice, if the alternate application o f remanufacturing and manufacturing processes is analysed. For the case of time-constant cost and demand data we prove the optimality of a policy star ting with remanufacturing before switching to manufacturing and give an est imation for the optimal switching point. Finally, it is investigated how th e disposal of excess inventory would change the solution. (C) 2001 Elsevier Science B.V. All rights reserved.