Daftar Isi:
  • Nowdays the issue of waste and the environment is a problem that should be solved by the company. One of them is by applying remanufacturing. Remanufacturing not only impacts on the environment, but by implementing remanufacturing the company can save raw materials, and reduce costs. In today’s competitive market, firms do everything possible to not lose their customers to competitors by improving their service levels. One option is to allow for backorders, where some customers are compensated for waiting for their delayed orders by either a reduction in price or some other forms of discount. This paper explains the remanufacturing inventory model by considering the limits on warehouse capacity. The suggested model aims to minimize the total inventory cost (TIC). Numerical experiments and sensitivity analyzes were carried out on models developed using the Lagrange method. The existence of constraints in storage capacity is able to produce an optimal quantity of remanufacturing while minimizing the inventory costs