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Fuzzy multicycle manufacturing / remanufacturing production decisions considering inflation and the time value of money
- Chen, Weida, Wei, Li, Li, Yaguang
- Journal of cleaner production 2018 v.198 pp. 1494-1502
- dynamic programming, inflation, manufacturing, models, profits and margins
- Under the background of global low-carbon production, this paper constructed a multicycle dynamic programming model to study the fuzzy manufacturing/remanufacturing production decisions by taking into account inflation and the time value of money. Furthermore, we analysed the impact of inflation and the time value of money on manufacturing/remanufacturing production decisions by dynamic programming with the signed distance method. The results indicated that (i) the optimal production cycle is positively related to the adjusting interest rate, and when the optimal production cycle is larger than the minimum feasible cycle number, the maximum profits first increase and then decrease; and (ii) when the demand is fixed, the total production quantity of manufactured products decreases, and the total production quantity of remanufactured products increases with the increase in the adjusted interest rate.