COST-BENEFIT ANALYSIS OF SENSOR-EMBEDDED PRODUCTS BASED DISASSEMBLY- TO- ORDER SYSTEM

Due to environmental awareness and realization of cost savings, disassembly-to-order (DTO) concept has become popular. One of the main obstacles to making optimal DTO decisions is the uncertainty involved in end-of-life products (EOLPs). This uncertainty is due to the lack of information about the condition and the quantity of EOLPs returned. This uncertainty can be removed by sensors monitoring the products in their life-cycle. However, DTO systems utilizing these sensors will be more costly to establish and maintain. This paper presents economic justification of establishing advanced disassembly-to-order (DTO) systems in which sensor-embedded end-of-life products are disassembled in order to fulfill sophisticated demands for both components and materials.

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