<p>This paper considers a hybrid production-remanufacturing system of a single product, composed of an original equipment manufacturer (OEM) and a set of customers/retailers, operating under collection and remanufacturing targets. For this kind of production system, we address the problem of simultaneously determining the sizes of the lots of production, remanufacturing and transportation to and from customers, in order to meet their demand on time and collect used products to be remanufactured. Set-up and unit costs are incurred for the three activities, and unit costs for holding inventory for both used and serviceable items in the OEM but also in the customers. Recovery targets are stated as lower bounds on the number of used products that must be collected and remanufactured by the OEM. We provide a mixed integer-linear programming formulation for the problem and suggest a solution procedure based on the metaheuristic of Tabu Search. We propose and evaluate several variants of the heuristic procedure by extending a well-known set of instances from the literature. The suggested procedures are compared against a state-of-the-art optimization solver, under different parameter settings of interest such as set-up costs, inventory holding costs and recovery targets. The results obtained from the numerical experimentation allow us to conclude that at least one of the variants of the proposed heuristic is effective both in cost and running time, even outperforming the optimization solver for some of the large instances.</p>