A Hierarchical Decision Model for Re-manufacturing and Re-use

: This paper presents a model to facilitate managerial decision-making for re-manufacturing and re-use. A system designed for product re-use relies on product returns. Reverse logistics models assume that the product returns process is exogenous and outside the control of the firm. The proposed approach is unique because it allows financial incentives to control product returns. That way timing, quantity and product quality as well as associated logistics functions are more predictable. The model consists of three stages and is intended for decision support in product acquisition, operational planning and control, as well as demand management and product pricing.