Hybrid Remanufacturing/Manufacturing Systems: secondary markets issues and opportunities

In this paper secondary markets opportunities for hybrid remanufacturing/manufacturing systems will be analyzed. Recovering options allow increasing product’s inherent value recovery rate and it have been experimented by many manufacturers for several years. Particularly, the remanufacturing has been receiving great attention from many OEMs. In this case, the joint presence of high quality returns and demand for such products on secondary markets (e.g. emerging markets), makes the management deciding about allocating these units on these secondary markets rather than remanufacturing them and supplying the primary market. To gain insight into such a system a simulation model has been developed by means of Arena and a statistical analysis of data obtained from some experimental campaigns has been carried out. In this way, the factors that mainly impact on system performance and the operating conditions in which selling on the secondary market is more profitable will be identified. Key-Words: Strategic analysis, Quality uncertainty, Remanufacturing, Secondary markets, Simulation.