Production-inventory strategies for a linear reverse logistics system

Abstract

Abstract The paper investigates an one-product reverse logistics system. The aim is to analyze the functioning of such a system with continuous time and linear cost structure. The costs consist of linear holding costs for both warehouse, and the linear remanufacturing, manufacturing, and disposal costs. The demand and return rates are known deterministic parameters. The problem is solved with the Pontyagin’s maximum principle. Solving the control problem, it is corrected an earlier paper [1].