Optimization of closed-loop supply chain of multi-items with returned subassemblies

The importance of reverse logistics is increasing for several environmental, societal and governmental reasons. The number of studies available in the literature on reverse logistics is a good indicator of its significance. Almost all of the available studies deal with a single product that is collected and recovered as a whole unit. In reality, manufacturing firms produce multiple products and spare parts. When a product reaches its end-of-life, the product and the spare parts produced to service it over its operational life are collected and then returned to the manufacturer for possible recovery (e.g., reuse, remanufacturing, and repairing). In most cases, returned items are disassembled to recover useful components that could be reused in producing new items or remanufactured ones, after which are introduced into the market as-good-as new.This paper develops a mathematical model for a system where a product (new or remanufactured) and its spare parts are returned and disassembled, where applicable, for recovery. The demand for the product and spare parts are met from production, remanufacturing and inspection/disassembly center. This paper identifies which strategy (pure remanufacturing, pure production or mixed) is more viable. Numerical examples are provided to illustrate the behavior of the model and to draw some insights.