Optimal Lot-Sizing Decisions for a Remanufacturing Production System under Spare Parts Supply Disruption

Remanufacturing is one of the ways forward for product recovery initiatives and maintaining sufficient production flow to satisfy customer demand by providing high-quality goods with a combination new return parts through circular economy. Recently, manufacturers have been progressively incorporating remanufacturing processes, making their supply chains vulnerable disruptions. One main disruptions that occurs in systems shortage spare supply, which results unexpected delays process could eventually result possible loss sales. In event such potential disruptions, facilities must manage an effective optimal manner negative impact business can be minimised. this study, two-stage production–inventory system was analysed developing cost-minimisation model focuses on schedule after occurrence disruption sourcing remanufacturer’s cycle. The developed solved using branch-and-bound algorithm, where experimental demonstrated provides solutions. Through numerical experiments, indicated number cycles are considerably dependent time, lost sales backorder costs. A sensitivity analysis showed option seems more than optimising system’s overall cost due unmet demand, becomes when serviceable items reduced, thereby shortening time. Furthermore, case study revealed manufacturer’s response highly influenced part costs as well supplier’s readiness level. proposed assist managers deciding strategy whilst interesting managerial insights into vital issues strikes.