On the non-optimality of the average cost approach for inventory models with remanufacturing

Authors

  • Ruud Teunter
  • Erwin van der Laan

DOI:

https://doi.org/10.24352/UB.OVGU-2018-158

Keywords:

inventory control, remanufacturing, disposal, costing

Abstract

When analysing average cost (AC) inventory models, it is common use to add the discount rate times the capital tied up in a product to the out-of-pocket holding cost rate. This way, capital costs are (roughly) included. In this paper we show that such a method may not always be appropriate for reverse logistics inventory models with both remanufacturing and disposal of returned products.

Published

2018-10-24

Issue

Section

Artikel