Abstract
A mathematical programming model is proposed to formulate a closed-loop network in the aerospace industry where remanufacturing of customer-owned components and transforming of defective components are allowed. Remanufacturing, a special type of manufacturing activity to recapture the value added to the materials when a product was first manufactured, has been one of the strategies to reduce negative environmental impacts of the disposal of products. A scenario analysis approach is used to consider varying remanufacturing lead time as well as defect rates of disassembled components. Further, sensitivity analysis is conducted to reveal insight on the effects of input factor variations on profit and amount of scraps.
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