Product recovery decisions within the context of Extended Producer Responsibility

Environmental and economic evidence is increasingly supporting the need for better analytical tools for evaluating the recovery of consumer products. In response, we present a novel mathematical model for determining what we call the Optimal Recovery Plan (ORP) for any given product. The ORP is based on an evaluation and optimization of the economics of remanufacturing consumer products versus demanufacturing in the context of Extended Producer Responsibility (EPR) legislation, a driving force behind the adoption remanufacturing initiatives by firms. We provide an illustrative application of the model and then discuss its implications for scholars and practitioners concerned with sustainable business development.