Optimal control of a one product recovery system with backlogging

In this paper a product recovery system for one product is investigated.The system contains one inventory for returned and recoverableitems and one for serviceable items. Demands are satisfied fromserviceable inventory where backlogging of demands is allowed.In addition, there is the possibility of disposal for the returnedproducts. We assume deterministic but dynamic return and demandrates and a linear cost structure. The Pontryagin maximum principleis used to determine the optimal production, remanufacturingand disposal policy.