The economics of remanufacturing under limited component durability and finite product life cycles

The economics of remanufacturing under limited component durability and finite product life cycles

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Article ID: iaor20082353
Country: United States
Volume: 53
Issue: 1
Start Page Number: 88
End Page Number: 100
Publication Date: Jan 2007
Journal: Management Science
Authors: , ,
Keywords: remanufacturing
Abstract:

This paper models and quantifies the cost-savings potential of production systems that collect, remanufacture, and remarket end-of-use products as perfect substitutes while facing the fundamental supply-loop constraints of limited component durability and finite product life cycles. The results demonstrate the need to carefully coordinate production cost structure, collection rate, product life cycle, and component durability to create or maximize production cost savings from remanufacturing.

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