Design for product upgradability considering remanufacturing outsourcing: A three-level joint optimization approach

Yujie Ma, Gang Du and Roger J. Jiao

International Journal of Production Economics, 2024, vol. 272, issue C

Abstract: Product design and business models play a pivotal role in the transition to a circular economy, emphasizing waste reduction and the preservation of valuable materials. Upgrading products by selectively replacing components that devalue over time proves to be an effective strategy for achieving competitive reutilization. This approach, known as product design for upgradability (DfU), not only enhances product value but also avoids whole product replacement, contributing to the realization of a sustainable society. The prevailing practice of DfU is often examined as a life-cycle characteristic, focusing on configurations of functional, physical, and architectural features to achieve competitive reutilization and extend service life. However, the upgradability of a product is strongly influenced by the practices of remanufacturing enterprises, which commonly adopt outsourcing strategies. Coordinating DfU decisions with remanufacturing and outsourcing presents a critical challenge for the effective operation of product upgrades.

Keywords: Design for upgradability; Remanufacturing outsourcing; Circular economy; Three-level joint optimization; Stackelberg game (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:272:y:2024:i:c:s0925527324000902

DOI: 10.1016/j.ijpe.2024.109233

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