Cost Model for Remanufacturing

Abstract

Over the years, remanufacturing practices have grown in popularity in industrial areas. It is one of the most effective ways to keep products out of landfills by turning end-of-life items into usable products. However, the available literature on cost models is limited or specific to a product. A general cost model for remanufacturing is presented in this paper to understand the major costs involved in the process to aid decision-making. A model is developed based on activity-based costing and performance-based costing by considering both the activities that occur during the process and their performance. As a result of using the proposed model, it is easier to monitor the costs of each activity, changes in performance, and understand the resulting impact on the cost of finished products.