Optimising replenishment policy for an integrated production inventory deteriorating model considering green component-value design and remanufacturing

This paper develops an integrated deteriorating production inventory model with green component design, remanufacturing and JIT deliveries. We provide a rigorous analysis to derive the number of deliveries, the optimal cycle time of deliveries, and the delivery sise for the integrated buyer-supplier inventory deteriorating model. Distinct from the former concept of average inventory level, our paper proposes a significantly different approach to deal with the first production batch and uses a revised method to approximate the relationship between the supplier's production and storage time. A manufacturing case example of Taiwan computer power-supply component producers is presented to illustrate the theory. It is shown that the parameters of component-value design and unit holding cost are the critical factors affecting the deteriorating inventory planning.