Remanufacturing in the Circular Economy

Chapter 4Remanufacturing, Closed-Loop Systems and Reverse Logistics

Rolf Steinhilper* and Steffen Butzer

Chair Manufacturing and Remanufacturing Technology, University of Bayreuth, Bayreuth, Germany

*Corresponding author: [e-mail]

Abstract

This chapter provides an overview of the concepts of Remanufacturing, Closed-Loop Systems, and Reverse Logistics, as well as the connections between them. The reasons for Reverse Logistics and remanufacturing, the role of cores in each concept, core return strategies, sourcing models, and both barriers to and drivers of implementation are also discussed.

Keywords: Remanufacturing, closed-loop supply chain, reverse logistics

4.1 Introduction

Today, manufacturing companies are faced with challenges that are twofold and seemingly at opposition with one another. On one hand, they must balance demands for mass customization with shorter product life cycles and increasing global competition; on the other, they are driven to care about the increasing customer awareness of environmental impacts and the relative “eco-friendliness” of their products, processes, and systems.

An emerging approach through which to address these challenges is the Circular Economy Movement, a socio-industrial construction whereby the outputs of one process or lifecycle phase reciprocally become inputs in another. This concept is highlighted globally by scholars, policymakers, and industrialists who believe economic growth can be achieved under current ...