In this paper, we consider a dynamic lot sizing model with remanufacturing having m types of cores. The model also allows manufacturing. We consider separate setup costs for manufacturing and remanufacturing in our model. It is conjectured in [15], with reference to [18], that finding an optimal policy to the model when there is separate setup costs for manufacturing and remanufacturing is NP-hard in general. In this paper, we show that an optimal policy to our model can be obtained with pseudo-polynomial time complexity. To add further to this contribution, we design a polynomial time feasible policy for fixed m, that is computationally less expensive than finding an optimal policy, and then investigate the closeness of this policy to optimality in total system cost. We also provide numerical
results in the paper comparing the feasible policy with optimality on instances of the model.
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