Inventory models with multiple production and remanufacturing batches under shortages

Owing to the ecological requirements and regulations, an enormous concern is being paid to the product re-processing. In the established literature, researchers considered that the remanufactured items are as good as the new ones. Yet, such an assumption is not convenient, as in many real situations the recycled products are considered by the customers to be of secondary quality. Further, the classical studies mainly addressed the inventory models without shortages, and this is not applicable in many practical business situations. This paper extends the reverse logistics inventory models with finite production and remanufacturing rate along with the assumption that newly produced and repaired (remanufactured) objects are not of same characteristics. Shortages are allowed and numerous stock-out cases are discussed. The collected used items are remanufactured (repaired) and non-repaired products are disposed off. The proposed models are illustrated with some numerical examples and their results are discussed.