Inderscience Publishers

Life cycle costing for strategic evaluation of remanufacturing systems

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Considering the economic potential of closed-loop supply chains and the increasing recognition of an Integrated Product Policy, the development and implementation of measures concerning product-related environmental protection is necessary. In this context, remanufacturing is the most valuable product recovery option since here the value that was originally added to the product can be preserved. Literature concerning remanufacturing mainly covers operational issues, while research on strategic decision making and planning of remanufacturing systems can hardly be found. Thus, in this contribution a concept which supports decision-makers in their considerations related to the implementation of a remanufacturing strategy is worked out. This concept resembles one of the first frameworks for the strategic planning of remanufacturing systems. The focus of this contribution lies on a life cycle costing approach for economic evaluation of decision alternatives. This supports the development of concepts aiming at the exploitation of economic potentials and facilitates the understanding of the entire system.

Keywords: remanufacturing strategy, strategic planning, life cycle costing, closed-loop SCM, supply chain management, integrated product policy, environmental protection, decision making, industrial ecology, environmental manufacturing, green manufacturing

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