Production, remanufacturing and waste disposal models for the cases of pure and partial backordering

Production, remanufacture and waste disposal models in the literature assume that produced and recovered (repaired or remanufactured) items are of the same quality. However, a recent study considered a more realistic situation where produced and remanufactured items are incompatible. That is, they are not perceived by customers to have the same quality characteristics. This results in a lost sales situation for produced (remanufactured) items when they are requested by customers during the remanufacturing (production) period. In today’s competitive market, where firms thrive to sustain or increase the market share for their products, a stock-out situation where demand is completely lost seems to go contrary to the objectives of these firms. In reality, a firm may choose to either backorder fully or partially their unsatisfied demand. This paper extends along this line of research by modelling these stock-out situations. Several stock-out cases are considered for which mathematical models are developed and numerical examples are provided with their results discussed.