On the trade-off between remanufacturing and recycling
Tharanga Rajapakshe,
Milind Dawande and
Chelliah Sriskandarajah
International Journal of Services and Operations Management, 2013, vol. 14, issue 1, 1-53
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.
Keywords: remanufacturing; recycling; extended producer responsibility; EPR; material substitutability; reverse logistics; trade-offs; product recovery; green consumers; take-back; product design; materials substitution. (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (2)
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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijsoma:v:14:y:2013:i:1:p:1-53
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