Research Papers

Maximizing Profits From End-of-Life and Initial Sales With Heterogeneous Consumer Demand

[+] Author and Article Information
Yuan Zhao

Graduate Research Assistant
e-mail: yzhao21@illinois.edu

Deborah Thurston

Fellow, ASME
e-mail: thurston@illinois.edu
Industrial and Enterprise Systems
Engineering Department,
University of Illinois at Urbana-Champaign,
Urbana, IL 61801

Contributed by the Design Automation Committee of ASME for publication in the Journal of Mechanical Design. Manuscript received December 12, 2011; final manuscript received October 26, 2012; published online February 20, 2013. Assoc. Editor: Wei Chen.

J. Mech. Des 135(4), 041001 (Feb 20, 2013) (10 pages) Paper No: MD-11-1506; doi: 10.1115/1.4023154 History: Received December 12, 2011; Revised October 26, 2012

Growing concerns from customers and the government about product disposal highlight the necessity of improving product take-back systems to retain the embedded values in disposed products. Progress has been made toward minimizing the cost of the end-of-life (EOL) processes. While some progress has been made in recovering end-of-life value through decision making in the early design stage, contradictive objectives make it difficult to simultaneously optimize initial sales profits and EOL value. In this paper, a mathematical model is developed to integrate end-of-life recovery value considerations with product design decisions. The improvement of component reuse value or recycling value is achieved by linking design decisions in the early design stage with end-of-life decisions in order to maximize total product value across the span of product life cycle. A matrix based representation that can group components into several end-of-life modules with the same end-of-life decisions is also presented. The results are discussed to compare different design alternatives to understand their influence on net present product lifecycle value. The original contribution here is the simultaneous consideration of profits from initial and returned product sales, resulting from consumer demand as a function of heterogeneous preferences for the product attribute set. In order to estimate consumer demand resulting from discrete choices made by individuals, a random coefficient, mixed logit model was employed. The proposed method is illustrated through a cell phone example of product design decisions and end-of-life strategies.

Copyright © 2013 by ASME
Your Session has timed out. Please sign back in to continue.


The European Parliament and the Council of European Union, 2003, “Directive 2002/96/EC of the European Parliament and of the Council of 27 January 2003 on Waste Electrical and Electronic Equipment (WEEE),” Official Journal of the European Union, No. L037, pp. 0024–0039.
Lambert, A., and Gupta, S. M., 2005, Disassembly Modeling for Assembly, Maintenance, Reuse and Recycling, CRC, Boca Raton, Florida.
Lee, D., Kang, J. G., and Xirouchakis, P., 2001, “Disassembly Planning and Scheduling: Review and Further Research,” Proc. Inst. Mech. Eng., Part B, 215(5), pp. 695–709. [CrossRef]
Giudice, F., and Fargione, G., 2007, “Disassembly Planning of Mechanical Systems for Service and Recovery: A Genetic Algorithms Based Approach,” J. Intell. Manuf., 18(3), pp. 313–329. [CrossRef]
Peng, Q., and Chung, C., 2008, “Selected Disassembly Planning for Product Maintainability,” Proceedings of the ASME International Design Engineering Technical Conferences and Computers and Information in Engineering Conference DETC2007, Vol. 4, pp. 999–1006.
Lee, D. H., Xirouchakis, P., and Zust, R., 2002, “Disassembly Scheduling With Capacity Constraints. Pdf,” CIRP Ann: Manuf. Technol., 51(1), pp. 387–390. [CrossRef]
Pnueli, Y., and Zussman, E., 1997 “Evaluating the End-of-Life Value of a Product and Improving it by Redesign,” Int. J. Prod. Res., 35(4), pp. 921–942. [CrossRef]
Bras, B., and Hammond, R., 1996, “Towards Design for Remanufacturing—Metrics for Assessing Remanufacturability,” Proceedings of the 1st International Workshop on Reuse, pp. 5–22.
Ijomah, W. L., McMahon, C. A., Hammond, G. P., and Newman, S. T., 2007, “Development of Design for Remanufacturing Guidelines to Support Sustainable Manufacturing,” Rob. Comput.-Integr. Manufact., 23(6), pp. 712–719. [CrossRef]
Seliger, G., Kriwet, A., and Zussmann, E., 1994, “Disassembly-Oriented Assessment Methodology to Support Design for Recycling,” CIRP Ann: Manuf. Technol., 43(1), pp. 9–14. [CrossRef]
Ilgin, M. A., and Gupta, S. M., 2010, “Environmentally Conscious Manufacturing and Product Recovery (ECMPRO): A Review of the State of the Art,” J. Environ. Manage., 91(3), pp. 563–91. [CrossRef] [PubMed]
Ishii, K., Eubanks, C. F., and Di Marco, P., 1994, “Design for Product Retirement and Material Life-Cycle,” Mater. Des., 15(4), pp. 225–233. [CrossRef]
Newcomb, P. J., Bras, B., and Rosen, D. W., 1998, “Implications of Modularity on Product Design for the Life Cycle,” J. Mech. Des., 120(3), pp. 483–490. [CrossRef]
Fukushige, S., Tonoike, K., Inoue, Y., and Umeda, Y., 2009 “Scenario Based Modularization and Evaluation for Product Lifecycle Design,” Proceedings of ASME International Design Engineering Technical Conferences.
Li, H., and Azarm, S., 2002, “An Approach for Product Line Design Selection under Uncertainty and Competition,” ASME J. Mech. Des., 124(3), pp. 385–392. [CrossRef]
Kwak, M., Hong, Y. S., and Cho, N. W., 2007, “Eco-Architecture Analysis as a Method of End-of-life Decision Making for Sustainable Product Design,” Proceedings of the ASME 2007 International Design Engineering Technical Conferences and Computers and Information in Engineering Conference.
Behdad, S., Kwak, M., Kim, H., and Thurston, D., 2010, “Simultaneous Selective Disassembly and End-of-Life Decision Making for Multiple Products That Share Disassembly Operations,” J. Mech. Des., 132(4), p. 041002. [CrossRef]
Kwak, M., and Kim, H. M., 2010, “Evaluating End-of-Life Recovery Profit by a Simultaneous Consideration of Product Design and Recovery Network Design,” J. Mech. Des., 132(7), p. 171001. [CrossRef]
McIntosh, M. W., and Bras, B. A., 1998, “Determining the Value of Remanufacture in an Integrated Manufacturing-Remanufacturing Organization,” Proceedings of the ASME Design for Manufacture Conference, ASME Design Technical Conferences and Computers in Engineering Conference, Atlanta, Georgia, ASME.
Whitefoot, K., Grimes-Casey, H., Girata, C., Morrow, R., Winebrake, J., Keoleian, G., and Skerlos, S., 2011, “Consequential Life Cycle Assessment With Market-Driven Design,” J. Ind. Ecol., 15(5), pp. 726–742. [CrossRef]
Train, K., 2009, Discrete Choice Methods With Simulation, 2nd ed., Cambridge University Press, New York.
Michalek, J. J., Ceryan, O., Papalambros, P. Y., and Koren, Y., 2006, “Balancing Marketing and Manufacturing Objectives in Product Line Design,” J. Mech. Des., 128(6), pp. 1196–1204. [CrossRef]
Kumar, D., Chen, W., and Simpson, T., 2009, “A Market-Driven Approach to Product Family Design,” Int. J. Prod. Res., 47(1), pp. 71–104. [CrossRef]
Pandey, V., and Thurston, D. L., 2007, “Copulas for Demand Estimation for Portfolio Reuse Design Decisions,” Proceedings of the ASME International Design Engineering Technical Conferences.
Cardell, N. S., and Dunbar, F. C., 1980, “Measuring the Societal Impacts of Automobile Downsizing,” Transp. Res. Part A, 14(5–6), pp. 423–434. [CrossRef]
Boyd, J. H., and Mellman, R. E., 1980, “The Effect of Fuel Economy Standards on the U.S. Automotive Market: An Hedonic Demand Analysis,” Transp. Res. Part A, 14(5–6), pp. 367–378. [CrossRef]
Hensher, D. A., and Greene, W. H., 2002, “The Mixed Logit Model: The State of Practice,” Transportation, 30(2), pp. 133–176. [CrossRef]
González, B., and Anders-Diaz, B., 2005, “A Bill of Materials-based Approach for End-of-Life Decision Making in Design for the Environment,” Int. J. Prod. Res., 43(10), pp. 2071–2099. [CrossRef]
Lai, X., and Gershenson, J. K., 2009, “DSM-Based Product Representation for Retirement Process-Based Modularity,” Proceedings of ASME International Design Engineering Technical Conferences.
Kroll, E., and Carver, B. S., 1999, “Disassembly Analysis Through Time Estimation and Other Metrics,” Rob. Comput.-Integr. Manufact., 15(3), pp. 191–200. [CrossRef]
Duflou, J., Seliger, G., Kara, S., Umeda, Y., Ometto, A., and Willems, B., 2008, “Efficiency and Feasibility of Product Disassembly: A Case-Based Study,” CIRP Ann: Manuf. Technol., 57(2), pp. 583–600. [CrossRef]
Yu, T.-L., Yassine, A. A., and Goldberg, D. E., 2007, “An Information Theoretic Method for Developing Modular Architectures Using Genetic Algorithms,” Res. Eng. Des., 18(2), pp. 91–109. [CrossRef]
Kara, S., Mazhar, M. I., and Kaebernick, H., 2004, “Lifetime Prediction of Components for Reuse: An Overview,” Int. J. Environ. Technol. Manage., 4(4), pp. 323–348. [CrossRef]
Dahmus, J. B., and Gutowski, T. G., 2007, “What Gets Recycled: An Information Theory Based Model for Product Recycling,” Environ. Sci. Technol., 41(21), pp. 7543–7550. [CrossRef] [PubMed]
Hazelrigg, G. A., 1998, “A Framework for Decision-Based Engineering Design,” J. Mech. Des., 120(4), pp. 653–658. [CrossRef]
Wassenaar, H. J., and Chen, W., 2003, “An Approach to Decision-Based Design With Discrete Choice Analysis for Demand Modeling,” J. Mech. Des., 125(3), pp. 490–497. [CrossRef]
Keeney, R. L., and Raiffa, H., 1993, Decisions with Multiple Objectives–Preferences and Value Tradeoffs, Cambridge University Press, Cambridge, New York.
http:// www.collectivegood.com/. [Accessed: 01-Jan-2012].
Croissant, Y., 2011, “Estimation of Multinomial Logit Models in R: The mlogit Packages.”
Croissant, Y., 2011, “Package ‘mlogit’,” 0.2-2. Available at http://cran.r-project.org/web/packages/mlogit/mlogit.pdf, accessed 2011.
Tucker, C. S., and Kim, H. M., 2008, “Optimal Product Portfolio Formulation by Merging Predictive Data Mining With Multilevel Optimization,” J. Mech. Des., 130(4), p. 041103. [CrossRef]
Erbis, E., Mcgovern, S. M., and Gupta, S. M., 2004, “Disassembly Sequencing Problem: A Case Study of a Cell Phone,” Proceedings of the SPIE International Conference on Environmentally Conscious Manufacturing IV, pp. 43–52.
Shiau, C. S., Tseng, I. H., Heutchy, A. W., and Michalek, J., 2007, “Design Optimization of a Laptop Computer Using Aggregated and Mixed Logit Demand Models with Consumer Survey Data,” Proceedings of the ASME International Design Engineering Technical Conferences.
X-bit labs, 2012, “Contemporary LCD Monitor Parameters and Characteristics,” Available: http://www.xbitlabs.com/articles/monitors/display/lcd-guide.html, (accessed: 01-Jan-2012).
Monteiro, M. R., Moreira, D. G. G., Chinelatto, M. A., Nascente, P. A. P., and Alcantara, N. G., 2007, “Characterization and Recycling of Polymeric Components Present in Cell Phones,” J. Polym. Environ., 15(3), pp. 195–199. [CrossRef]


Grahic Jump Location
Fig. 1

End-of-life module disassembly matrix

Grahic Jump Location
Fig. 2

Disassembly time in initial product structure matrix

Grahic Jump Location
Fig. 3

Disassembly module in disassembly matrix for the cell phone case study



Some tools below are only available to our subscribers or users with an online account.

Related Content

Customize your page view by dragging and repositioning the boxes below.

Related Journal Articles
Related eBook Content
Topic Collections

Sorry! You do not have access to this content. For assistance or to subscribe, please contact us:

  • TELEPHONE: 1-800-843-2763 (Toll-free in the USA)
  • EMAIL: asmedigitalcollection@asme.org
Sign In