In a market with rapid changes in technology and customer preferences, technological obsolescence of end-of-life products poses a significant challenge to product recovery. Remanufacturing with optimal part upgrades can be a promising solution for overcoming the obsolescence. This paper proposes a model for positioning a remanufactured product. By considering original product design, target market (i.e., customer preferences and competing products), and recovery economics, the model helps to find optimal specifications and the selling price of a remanufactured product at which maximum remanufacturing profit is expected. Two versions of the model are presented under different assumptions on product takeback. The first model assumes that the remanufacturer passively accepts all returns without paying any financial incentives. The second model assumes that the remanufacturer buys back end-of-life products so as to control the quality and quantity of returns. The two models are illustrated with the example of a desktop computer.
Market Positioning of Remanufactured Products With Optimal Planning for Part Upgrades
Contributed by Design Automation Committee of ASME for publication in the Journal of Mechanical Design. Manuscript received August 12, 2011; final manuscript received October 22, 2012; published online December 12, 2012. Assoc. Editor: Bernard Yannou.
- Views Icon Views
- Share Icon Share
- Cite Icon Cite
- Search Site
Kwak, M., and Kim, H. (December 12, 2012). "Market Positioning of Remanufactured Products With Optimal Planning for Part Upgrades." ASME. J. Mech. Des. January 2013; 135(1): 011007. https://doi.org/10.1115/1.4023000
Download citation file:
- Ris (Zotero)
- Reference Manager