Development of an Inventory Control Model for Reusable Items: Economic Quantities of Order and Recovery

Abstract

Today, access to natural resources is much more difficult than before. In addition, governments encourage companies to recover and reuse with their modern policies. Recovering and reusing materials is necessary for some companies to compete in the market and improve their performance by reducing costs. Examples of this model can be seen in the system of machine tools, medical equipment, the automobile industry, and furniture, which have been able to implement improvements in their work process with the policies of this model. The focus of this paper is on developing a mathematical model to manage an inventory of items that can be reused. The model for inventory control that can recover items for reuses will be presented in this article. The purpose of this inventory model is to minimize the costs when there is a possibility of multiple consumptions for each item through the recovery process. The objective of this problem is to determine the economic quantities of order and recovery simultaneously by utilizing an inventory control model. This article works on designing an efficient and effective model to reduce and control costs and increase the efficiency of the system so that by recovering and reusing consumer goods, the waste will reach its minimum and the costs will also be minimized.