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Application of reverse logistics for remanufacturing in the electro-mechanical sector

El Barky, Sahar Sobhy Sabry and Ion, William and El Sayed, A (2009) Application of reverse logistics for remanufacturing in the electro-mechanical sector. In: International Conference on Flexible Automation and Intelligent Manufacturing (FAIM) 2009, 2009-07-06 - 2009-07-08.

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Abstract

Recovery strategy is one the practical methods which supports sustainable objectives. Environmental policies and legislation, economic benefits and increasing customer awareness of green products are the main drivers for the extension of recovery strategies in the industrial and service sectors. Remanufacturing is preferable to recycling due to the saving of the initial value added to the raw material in producing the final product. Remanufacturing is "The process of returning a used product to at least OEM original performance specification from the customers’ perspective and giving the resultant product a warranty that is at least equal to that of a newly manufactured equivalent”. The steady supply of core product is critical for remanufacturing as without it, it clearly cannot proceed. The complexity of the remanufacturing process lies in the uncertainty in the timing, quality and quantity of used products. The movement of used products from the consumer to the producer in distribution channel is defined as reverse logistics. Through reverse logistics activities, the assessment of used products is important to the overall profitability of the remanufacturing process. The decision for accepting or rejecting the used product is based on suitability for remanufacturing and is made by the dealers or OEM. Due to the lack of assessment criteria and guidelines for the assessment process, the used product assessment may be erroneous and it depends almost entirely on the experience. This paper will describe the previous work in the reverse logistics for remanufacturing. Also, it will present a proposed model showing the interaction between remanufacturing processes and reverse logistics activities. Finally, it will propose the research objectives and methodology which focus on the assessment criteria of core products and the relation between the nominal quality and acquisition price of used product. It present the initial findings of conducting industrial case study in Egypt.