MONEY-BACK GUARANTEE WARRANTY POLICY FOR SENSOR EMBEDDED REMANUFACTURED PRODUCTS

Abstract

Manufacturers attempt to respond to consumers’ concerns involving environmental issues as well as the more governmentally stringent environmental legislations by establishing facilities which include the minimization of the totality of waste relocated to landfills by recovering materials and components from returned, or End-Of-Life (EOL) products and reuse them to build a remanufactured product, and/or novel components. In this paper, an optimization simulation model for remanufactured items sold with one-dimensional non-renewing Money Back Guarantee (MBG) Warranty policy is proposed from the view of remanufacturer, in which, an End-Of-Life product (EOLP) is subjected to upgrade action at the end of its past life and during the warranty period. Finally, a numerical example and Design of Experiment analysis are provided to demonstrate the proposed approach.