Modeling the Impact of Remanufacturing Process in Determining Demand-Cost Trade off Using MAUT

Abstract

Abstract In order to maintain an ecological balance between new demands and reducing waste, a “remanufacturing” process has emerged as a tool that collectively gratifies long-term benefits to both the firms as well as the consumers. The role of remanufacturing is important in new product development as it fastens the rate of system degradation. In view of this, the current study presents a methodical approach to estimate and analyze how the concept of remanufacturing helps in minimizing cost while satisfying demand. To determine the optimal time point of maximum profit and minimum cost as the overall objective, multi-attribute utility theory (MAUT) have been utilized. The cost of remanufacturing the product and its demand has been considered as significant components which affect the optimal point. Furthermore, the proposed model has been validated on real-life sales data of automobile industry.