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On the trade-off between remanufacturing and recycling

Author

Listed:
  • Tharanga Rajapakshe
  • Milind Dawande
  • Chelliah Sriskandarajah

Abstract

Motivated by interactions with two reverse-logistics firms, we analyse the trade-off between two product-recovery approaches: recycling and remanufacturing. We consider a manufacturer who produces and markets a product with the objective of maximising profit. A unit of the product consists of two modules: A and B. After recovery, Module A can be recycled to recover its raw material, which can then be used to produce new units of either module. A recovered Module B is remanufactured and can be used in a remanufactured unit. Under this setting, we investigate three options: 1) only recycling of Module A; 2) only remanufacturing of Module B; 3) recycling of Module A and remanufacturing of Module B. We provide a complete theoretical characterisation of the regions of optimality of each option. Useful insights are offered by examining the influence of the fraction of green consumers, the take-back fraction, and product design characteristics.

Suggested Citation

  • Tharanga Rajapakshe & Milind Dawande & Chelliah Sriskandarajah, 2013. "On the trade-off between remanufacturing and recycling," International Journal of Services and Operations Management, Inderscience Enterprises Ltd, vol. 14(1), pages 1-53.
    • Handle: RePEc:ids:ijsoma:v:14:y:2013:i:1:p:1-53
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    Cited by:

    1. Aditya Vedantam & Emre M. Demirezen & Subodha Kumar, 2021. "Trade‐In or Sell in My P2P Marketplace: A Game Theoretic Analysis of Profit and Environmental Impact," Production and Operations Management, Production and Operations Management Society, vol. 30(11), pages 3923-3942, November.
    2. Ahmed Timoumi & Narendra Singh & Subodha Kumar, 2021. "Is Your Retailer a Friend or Foe: When Should the Manufacturer Allow Its Retailer to Refurbish?," Production and Operations Management, Production and Operations Management Society, vol. 30(9), pages 2814-2839, September.

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