Exploring Remanufacturing Conveniency: An Economic and Energetic Assessment for a Closed-Loop Supply Chain of a Mechanical Component

The concept of sustainability has become pervasive in society, compelling industries to embrace circular economy principles supported by institutions, such as the European Commission. The circular economy promotes recovery, sharing, and recycling, which poses challenges in transitioning from linear to circular models. Remanufacturing is a key strategy in this framework by enabling the recycling of discarded products, improving resource efficiency, and reducing waste. Therefore, this study investigates the key factors influencing decision-making in remanufacturing processes within the supply chains of mechanical components, identifying scenarios where remanufacturing proves to be more effective than purchasing new products. This research provides valuable insights for businesses considering the adoption of remanufacturing in their supply chains. While previous studies on remanufacturing have predominantly focused on economic aspects, this research addresses both economic and energy-related implications. The study proposes a three-stage methodology to compare three scenarios and select the optimal one: a traditional supply chain for mechanical components without remanufacturing (Scenario 1), a supply chain with remanufacturing and direct customer-manufacturer interaction (Scenario 2), and a supply chain with remanufacturing and indirect customer-manufacturer interaction facilitated by a distribution center (Scenario 3). This methodology was applied to components made of steel, aluminum, and titanium. The results reveal that the remanufacturing volume and the percentage of material preserved by conventional manufacturing process are the most critical variables to consider when evaluating the introduction of remanufacturing in supply chains. Specifically, the lower the former values the more remanufacturing tends to be preferred. Furthermore, remanufacturing is usually favored by the energetic analysis, while the economic analysis shows mixed results. The developed models and the obtained findings could assist organizations in making strategic decisions regarding end-of-life strategies and assessing the economic and energy viability of integrating remanufacturing processes into their supply chains, as opposed to favoring new component production.