Revisiting lot sizing for an inventory system with product recovery

This note investigates the study by Teunter (2004) [1] on lot sizing for inventory systems with product recovery where lot sizing formulae for two recovery policies ((1,R)(1,R) and (P,1)(P,1)) are derived. Instead of applying the classical optimization technique, we develop an integrated solution procedure for each of the two policies using algebraic approaches. Numerical analysis show that our examples result in a lower total cost for both policies.