Remanufacturing Option Selection with Disassembly for Recovery Rate and Profit

In order to cope with the issue of depletion of natural resources, expectations for economical designs of the closed-loop supply chains of products that include remanufacturing in their lifecycle have recently significantly grown. However, since disassembly of a product to remanufacture it is costly due to high labor costs, the lifecycle option of remanufacturing an end of life product by disassembly and reassembly needs to be established environmentally as well as economically. In this study, we propose a remanufacturing option selection method that takes recovery rates and profits into account. First, a bill of materials of a product is prepared to create data for remanufacturing. Next, its remanufacturing option selection is formulated by using the 0-1 integer programming. Lastly, the proposed remanufacturing option selection method is verified by analyzing the sensitivities of the recovery rates and selling prices of the remanufactured products using the ϵ constraint method. The proposed method that takes remanufacturing into account has demonstrated a generating larger profits than a conventional method maintaining high recovery rates at the same levels in a case study.