A multi-objective supply chain optimization model for reliable remanufacturing problems with M/M/m/k queues

Abstract

Product recovery is critical in reducing costs, enhancing profitability, and improving supply chain responsiveness to customer demands. Remanufacturing returned products, as part of the circular economy, is a central strategy in achieving these goals. This study presents a model that optimizes the remanufacturing process using in-house workstations and outsourcing to maximize supply chain profitability, reduce queue lengths, and ensure machine reliability. The remanufacturing system is modeled as an M/M/m/k queuing system, considering real-world supply chain constraints such as budget limitations, station capacity, and machine reliability. Supply chain optimization is achieved by maintaining efficiency while examining different remanufacturing policies and pricing strategies. The results show that expanding remanufacturing capacity enhances supply chain profitability, even with moderate increases in queue length. We provide valuable insights for supply chain managers aiming to optimize their remanufacturing processes and balance cost, efficiency, and reliability.