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Quality-driven recovery decisions for used components in reverse logistics

Kai Meng, Peihuang Lou, Xianghui Peng and Victor Prybutok

International Journal of Production Research, 2017, vol. 55, issue 16, 4712-4728

Abstract: Reverse logistics has emerged as a promising strategy for enhancing environmental sustainability through remanufacturing, reusing, or recycling used components. It is crucial to pursue quality-driven decision-making for component recovery because quality is a dominant factor for component salvage value and its recoverability. To maximise the profit from component recovery, a quality-driven decision model was proposed in this study. Remaining useful life (RUL) was utilised as a measure of quality in the proposed model, where conditional RUL distribution was predicted by utilising both the failure data and condition monitoring data based on a proportional hazard model. Under RUL uncertainty, an interval decision-making approach was developed to suggest recovery strategies for the decision-makers to identify a satisfactory solution according to their risk preferences. Compared to the existing approaches for quality-driven recovery decision-making based on RUL prediction, this work provides a more accurate and powerful approach to managing and mitigating decision risk. Numerical experiments demonstrated the effectiveness and superiority of the proposed model.

Date: 2017
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Citations: View citations in EconPapers (3)

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DOI: 10.1080/00207543.2017.1287971

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