Abstract: In recent years, environment regulation forcing
manufactures to consider recovery activity of end-of- life products
and/or return products for refurbishing, recycling,
remanufacturing/repair and disposal in supply chain management. In
this paper, a mathematical model is formulated for single product
production-inventory system considering remanufacturing/reuse of
return products and rate of return products follows a demand like
function, dependent on purchasing price and acceptance quality level.
It is useful in decision making to determine whether to go for
remanufacturing or disposal of returned products along with newly
produced products to satisfy a stationary demand. In addition, a
modified genetic algorithm approach is proposed, inspired by particle
swarm optimization method. Numerical analysis of the case study is
carried out to validate the model.