Economic evaluation of potential locations for remanufacturing in an extended supply chain – a case study on robotic lawn mowers

Abstract

As environmental issues attract more concern, shifting towards sustainable manufacturing that includes remanufacturing has become a strategic solution to enable a profitable business while improving environmental performance. The aim of this paper is to investigate the economic feasibility of remanufacturing at different supply chain locations for a robotic lawn mower manufacturer attempting to expand their business. Through a case study, five potential location categories were identified, of which two were deemed economically feasible: spare parts warehouse (OEM) and decentralized (dealers). The other three alternatives were deemed inferior in comparison, or only plausible, but identified as risky through a sensitivity analysis.