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Development of a cost model and its application in determining optimal size of a diesel engine remanufacturing facility |
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| Authors: | JW Sutherland KR Haapala |
| Affiliation: | a Division of Environmental and Ecological Engineering, Purdue University, West Lafayette, IN 47907, United States b Department of Mechanical Engineering-Engineering Mechanics, Sustainable Futures Institute, Michigan Technological, University, Houghton, MI 49931, United States c School of Mechanical, Industrial, and Manufacturing Engineering, Oregon State University, 204 Rogers Hall, Corvallis, OR 97331, United States |
| Abstract: | Remanufacturing represents a business opportunity and a means to promote environmental sustainability. In planning remanufacturing operations for a specific product in a particular market, determining the facility size is a critical decision. A large centralized facility offers economies of scale advantages, but has greater transportation costs relative to a set of smaller distributed facilities. A remanufacturing facility cost model is developed and applied for diesel engine remanufacturing that includes product, operation, inventory, and transportation-related costs. The effects of product yield, remanufacturing efficiency, transportation cost rate, and product mass on remanufactured product unit cost and remanufacturing facility size are examined. |
| Keywords: | Sustainable development Optimization Remanufacturing |
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