Analytical models for economic demanufacturing inventory management

Document Type

Conference Proceeding

Publication Date



For value recovery activities to be successful in the U.S., the components recovered through demanufacturing operations must be sold at a profit. One of the most important challenges faced by demanufacturing facilities is the management of inventory, which can significantly impact company profitability. In order to achieve profitability, demanufacturers require tools to effectively manage recovered component inventories and scrap/recyclate. In this paper, analytical models are developed to predict the optimal selling quantity and selling period for recovered parts and scrap/recyclate in a demanufacturing system. In addition, total system profit is examined, including break-even conditions. Copyright © 2004 by ASME.

Publication Title

American Society of Mechanical Engineers, Manufacturing Engineering Division, MED