Integration of vendor selection into production and remanufacturing planning subject to emission constraints

This paper presents a new model formulation that incorporates vendor selection into production and remanufacturing planning subject to emission constraints. The objective is to determine a feasible production and remanufacturing plan at minimal cost. In each period, the given external demand must be satisfied for both new and remanufactured products. Remanufactured products can be substituted by new products, but not vice versa. When a product is ( re) manufactured, the appropriate machine must be set up, which entails set-up costs and/or set-up time. The procurement of raw material that is offered by several vendors at different prices is integrated into this planning problem. To solve this integrated production and remanufacturing planning problem, we apply two solution approaches based on mathematical programming: first, a combination of column generation and a period-oriented fix-and-relax heuristic and second, an adapted fix-and-optimise heuristic. The results of our numerical investigation demonstrate the high solution quality of both solution approaches.