A Base Stock Inventory Model for a Remanufacturable Product

Abstract

We report on an industrial project in which we developed an inventory model to provide decision support for the design and deployment of the field service support system for a remanufacturable product. The product was a dialysis unit for home use. Each unit that was installed in a home would eventually be removed due to failure, or the need for preventative maintenance, or the termination of the service. Upon removal, each unit was shipped to a central depot for re-manufacturing so that it could be returned to service. We develop a model to determine the inventory requirements at each regional depot, and then describe how to use the model to determine the inventory requirements in the two-echelon system consisting of the central facility and the regional depots.