Optimal control of remanufacturing systems with uncertainty in quality identification

Uncertainty about quantity and quality of returned end-of-use products represents a relevant aspect in the design and operation of remanufacturing systems. This paper proposes a novel optimal control policy to maximize the expected margin of a motor OEM remanufacturing electric motors. The control policy targets multiple quality classes of returning cores, and it accounts for imperfect inspection as well as for finite production capacity of the remanufacturing system. The optimal policy allows to estimate the impact of variability of quality and quantity of cores on the resulting flow of remanufactured products which is fundamental to design the remanufacturing value chain.