Inderfurth, Karl, Ian M. Langella, Sandra Transchel and Stephanie Vogelgesang (2013)

A heuristic approach for the disassemble-to-order problem under binomial yields

in: Tempelmeier, Horst and Heinrich Kuhn (ed.): Proceedings to the Ninth International Conference on Stochastic Models of Manufacturing and Service Operations, (2013), 71-78.

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Abstract: In disassemble-to-order (DTO) systems randomness of recoverable parts gained from used products creates a major challenge for appropriate planning. Typically, it is assumed that yields from disassembly are either stochastically proportional (SP) or follow a binomial (BI) process. In the case of yield misspecification, it can be shown that the BI yield assumption usually results in a lower penalty than the SP yield assumption. For BI yield, however, a suitable, powerful heuristic is needed in order to facilitate DTO problems olving for complex realworld product structures. We present a heuristic approach that is based on a ecomposition procedure for the underlying non-linear stochastic optimization problem and that can be applied to problems of arbitrary size. A numerical performance study reveals that this heuristic yields close - to - optimal results.

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