Reverse Logistics Network Planning for Cloud Remanufacturing: Exploring Additive Manufacturing in the Circular Economy

Abstract

As the circular economy becomes increasingly critical in manufacturing, the demand for technologies that enhance repair and remanufacturing processes is rising. Additive manufacturing (AM) is particularly well-suited for metal remanufacturing and reverse logistics in high value industries like defense and aerospace, due to its adaptable processing capabilities and distributable manufacturing model. While previous studies have focused on the precision of metal AM repair, few have investigated its impact at the supply chain level. This study addresses this gap by exploring the integration of cloud-based AM services (CA-RMfg) to support reverse logistics in metal remanufacturing, reducing capital and technical barriers for small and medium enterprises (SMEs). A bi-objective reverse logistics model is developed within the CA-RMfg environment to optimize facility connections and manage network variabilities. The effectiveness of the model is demonstrated through a real-world case study of aircraft engine repair service providers in the state of Texas in the U.S., identified using the North American Industry Classification System NAICS code. Results indicate that a broader AM hub distribution reduces waiting times but increases average repair costs to over $640 per unit for SMEs due to facility underutilization. However, optimized AM hub allocations lower unit repair costs to approximately $250 for SMEs within the service area, offering a two- to threefold reduction compared to in-house AM facilities. Additionally, for large enterprises, in-house AM remains cost-effective, achieving up to a 20% savings through higher utilization rates and bulk material discounts, though with potential trade-offs in waiting times.