Stochastic model predictive control for remanufacturing system management

Abstract Uncertainties in the quality, quantity, and operational time of used products pose a challenge to the management of remanufacturing systems. In addition, it becomes a necessity to optimize the operation of the remanufacturing system to balance the quality of products, remanufacturing efficiency, and service level. In this study, a stochastic discrete-time dynamical model is proposed to represent a remanufacturing system, where the relationship between the market satisfaction, inventory status, and operational actions is explicitly modeled. This includes production and inventory planning, resource allocation and acquisition. To handle uncertainties, a stochastic model predictive control approach is proposed to plan the actions that optimize the remanufacturing efficiency. Our results in the simulation examples show that: (a) without supplies, the remanufacturing system has better stability and robustness than a conventional manufacturing system with the same initial stocks; and (b) with insufficient initial stocks, the remanufacturing system demands fewer and more gradual supplies, thereby keeping the system stable. Finally, a sensitivity analysis is conducted for testing the performance of the remanufacturing system. By changing the operational action capacity, different state equilibria are discovered, which correspond to distinct system response characteristics. The study reveals notable managerial insights and effects of product commonality, demand patterns, and operational actions scheduling on the efficiency of the remanufacturing system.