We study a closed-loop supply chain involving a manufacturing facility and a remanufacturing facility. The manufacturer satisfies stochastic market demand by remanufacturing the used product into “as-new” one and producing new products from raw material in the remanufacturing facility and the manufacturing facility, respectively. The remanufacturing cost depends on the quality of used product. The problem is maximizing the manufacturer’s expected profit by jointly determining the collected quantity of used product and the ordered quantity of raw material. Following that we analyze the model with a fill rate constraint and a budget constraint separately and then with both the constraints. Next, to handle the imprecise nature of some parameters of the model, we develop the model with both constraints in bifuzzy environment. Finally numerical examples are presented to illustrate the models. The sensitivity analysis is also conducted to generate managerial insight. 1. Introduction In recent years more and more attention has been paid to recycling and remanufacturing of used products due to the increased environmental concerns, reduced waste, and awareness of natural resources limitation worldwide. Remanufacturing the used product and then sending them back to market “as-new” product are considered a part of closed-loop supply chain (CLSC), along with operations like acquisition/collection, testing, repairing, manufacturing, and distribution. Many product categories, from car batteries to printer cartridge and computers, can be made new in this way. With the integration of a remanufacturing facility in a manufacturing system the complexity is increasing and therefore also the production planning is getting more challenging to the manufacturer. van der Laan et al [1] and Krikke [2] study the production planning and inventory control problem for a closed-loop system where manufacturing and remanufacturing operations occur simultaneously. All the products produced by the manufacturing process and the remanufacturing process can be used to fulfil customer demands. Two control strategies are analyzed: the PUSH strategy where all returned products are remanufactured as early as possible; the PULL strategy where all returned products are remanufactured as late as it is convenient. Inderfurth [3] analyzes the optimal policies to control a hybrid manufacturing-remanufacturing system, in which the two operations are not directly interconnected if remanufactured items are downgraded and have to be sold in markets different from those for new products. But in case of a
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