Research on Production Decisions in a Hybrid Manufacturing and Remanufacturing System Considering Risk Aversion

Firstly a single-period multi-product newsvendor model with capacity constrains and remanufacturing is built under risk aversion and the KKT(Kuhn-Tucker) condition for its optimality is given.Then a hybrid heuristic algorithm combined with iteration searching method and genetic algorithm(GA) is proposed to solve the model.The validities of the model and algorithm are illustrated by means of two examples.Finally sensitivity analyses of the impact of the parameters of return uncertainty,risk aversion value on system profits are given.