Approximate Dynamic Programming for a Remanufacture-to-Order System

Abstract

Remanufacturing is pivotal in transitioning to more sustainable economies. While industry evidence highlights its vast market potential and economic and environmental benefits, remanufacturing remains underexplored in theoretical research. This study revisits a state-of-the-art remanufacture-to-order (RtO) system and develops an alternative approach by developing an approximate dynamic programming (ADP) algorithm to solve larger RtO instances. The proposed methodology yields results consistent with existing state-dependent, non-congestive policies. Key findings include the optimality of fulfilling demand whenever remanufacturable cores are available and prioritizing cores of the highest quality level. This work highlights the potential of ADP in addressing problems in remanufacturing domains.