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Product take-back and component reuse

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A manufacturer setting up a product take-back scheme needs a sound product recovery strategy. An important option of product recovery management is component reuse. Under certain conditions the component can be reused for the remanufacturing of a perfect substitute of the original product. But the reuse potential of components is limited due to wear and tear and the fact that in most take-back schemes only a certain percentage of the sold products will return to an original equipment manufacturer. This paper investigates how the relationship between component durability, return rate of the post-consumer products and cost structure of the reuse and remanufacturing operations impacts the cost-efficiency of this added-value recovery. A systems approach is used to derive some general results about the attainable efficiency of the reuse operations and to investigate under which conditions component reuse leads to production cost savings for an original equipment manufacturer.

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