A framework to assess the economic viability of remanufacturing

Recovering products at their end-of-useful-life (EOL) from customers allows companies to reduce some of their negative impacts on the environment and provides them an opportunity to gain or retain a competitive advantage. Remanufacturing is especially critical for electronic products where EOL issues emerge quickly due to short life spans. Government regulations are being proposed or enacted at an increasing rate, requiring producers to take back and recycle or remanufacture their products when the customer is finished with them. A framework is presented that identifies the critical conditions under which remanufacturing is economically viable. The viability is determined in a government mandated, take-back environment, where the producer must decide what type of recovery process to adopt for its reclaimed products. The applicability of the framework is shown via a case study of an office equipment manufacturer. The case study also evaluates the external costs of landfilling if no take-back program exists.