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Determining end-of-life policy for recoverable products

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  • Daniel W. Steeneck
  • Subhash C. Sarin

Abstract

We address a problem that arises for an original equipment manufacturer (OEM) who produces a product both in new and remanufactured forms. A remanufactured product is produced using the parts harvested from recovered products (cores) upon their disassembly, and it may contain some new parts while the excess good parts from cores are salvaged for profit. Other options are available to the OEM for handling cores that do not require disassembly. It follows that the per-unit remanufacturing cost is not constant and it may change depending on the number of recovered cores, good-part reclamation yields, and sales of remanufactured products. We present analytical results for determining an optimal solution with regard to: (i) quantity of cores to collect, (ii) end-of-life (EOL) options for the cores and (iii) product pricing of new and remanufactured products. Our analysis reveals existence of a ‘limiting part’ that dictates the number of cores to collect and a ‘key part’ that determines the number of remanufactured products to make as well as the fact that the availability of cores does not impact the EOL policy type for a product. Our analysis also enables mapping of product characteristics onto corresponding EOL policy types.

Suggested Citation

  • Daniel W. Steeneck & Subhash C. Sarin, 2017. "Determining end-of-life policy for recoverable products," International Journal of Production Research, Taylor & Francis Journals, vol. 55(19), pages 5782-5800, October.
    • Handle: RePEc:taf:tprsxx:v:55:y:2017:i:19:p:5782-5800
    DOI: 10.1080/00207543.2017.1334977
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    Cited by:

    1. A. K. Gaula & J. K. Jha, 2024. "Pricing strategy with quality improvement in a dual collection channel closed-loop supply chain under return uncertainty," Operational Research, Springer, vol. 24(2), pages 1-40, June.
    2. Zahraei, Seyed Mehdi & Teo, Chee-Chong, 2018. "Optimizing a recover-and-assemble remanufacturing system with production smoothing," International Journal of Production Economics, Elsevier, vol. 197(C), pages 330-341.
    3. Steeneck, Daniel W. & Sarin, Subhash C., 2018. "Product design for leased products under remanufacturing," International Journal of Production Economics, Elsevier, vol. 202(C), pages 132-144.
    4. Feng Tao & Tijun Fan & Xuefeng Jia & Kin Keung Lai, 2021. "Optimal production strategy for a manufacturing and remanufacturing system with return policy," Operational Research, Springer, vol. 21(1), pages 251-271, March.
    5. Luttiely Santos Oliveira & Ricardo Luiz Machado, 2021. "Application of optimization methods in the closed-loop supply chain: a literature review," Journal of Combinatorial Optimization, Springer, vol. 41(2), pages 357-400, February.

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