Multi-item bi-level supply chain planning with multiple remanufacturing of reusable by-products

In this paper, we investigate a multi-item production planning problem in which remanufacturable raw materials are used for manufacturing the final products. The used raw material (considered as a kind of by-product) needs to be remanufactured before being suitable to be used again to manufacture other final products. However, by-products can be remanufactured only a given number of times. The manufacturing and remanufacturing processes are performed in separated production processes with limited capacity. Each product may be produced using specific raw material references (newly purchased and/or remanufactured). The original industrial case study is based on the supply chain of Silicon-On-Insulator fabrication units. The problem is modeled as a mixed-integer linear mathematical program. Using numerical examples based on industrial data, the model is validated and its behavior is analyzed. Finally, some industrial and academic perspectives to this study are proposed.