In this article, we investigate the profitability of remanufacturing option when the manufactured and remanufactured products are segmented to different markets and the production capacity is finite. It is assumed that remanufactured products can be substituted by the manufactured ones. A single period profit model under substitution is constructed to investigate the system conditions under which remanufacturing is profitable. We present analytical findings and computational results to show profitability of remanufacturing option under substitution policy subject to a capacity constraint of the joint manufacturing/remanufactruing facility.

, , ,
Econometric Institute Research Papers
Erasmus School of Economics

Bayindir, P., Erkip, N., & Gullu, R. (2003). Assessing the benefits of remanufacturing option under one-way substitution and capacity constraint (No. EI 2003-19). Econometric Institute Research Papers. Retrieved from