International Journal of Production Research

ISSN: 0020-7543 (Print) 1366-588X (Online) Journal homepage: http://www.tandfonline.com/loi/tprs20

Model for the allocation of electronics

components to reuse options

S. Jorjani, J. Leu & C. Scott

To cite this article: S. Jorjani, J. Leu & C. Scott (2004) Model for the allocation of electronics
components to reuse options, International Journal of Production Research, 42:6, 1131-1145,
DOI: 10.1080/00207540310001632466

To link to this article: http://dx.doi.org/10.1080/00207540310001632466

Published online: 21 Oct 2013.

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 INT. J. PROD. RES., 2004, VOL. 42, No.6, 1131-1145
Q
~
Taylor & Francis
Tayk)r&FrancisGroup

MOdel for the allocation of electronics components to reuse options

S. JORJANlt*, J. LEUt and C. SCOTTt

This paper develops an optimal allocation procedure for the disassembled

components of electronic equipment. It also reviews and discusses the reuse
options available to high-tech companies when it comes to disassembly. A
piecewise linear concave program is formulated to find the optimal disassembly
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strategy. The model is then applied to actual data from an electronics manu-
facturer. It is concluded that the landfill option, the most undesirable option
available to most manufacturers, can be avoided if the manufacturer can find
other options with non-negative returns.

1. Introduction
No other sectors of the economy generate as much environmentally harmful
Waste as the manufacturing sector. Consequently, there is an outcry for manufacturers
to exhibit their social responsibilities by reducing negative environmental impacts
during the manufacturing process, throughout the use of a product, and after
the use of a product. While this appears to be a great burden for manufacturers, it
also gives rise to an opportunity for a manufacturer to formulate a winning strategy.
A manufacturer can choose to obtain eco-labels and achieve certifications to gain
access to markets that reward environmentally friendly endeavours. There are three
types of eco-labels. The type I label involves an impartial third party who determines
a set of criteria, evaluates competing products and awards the label to market
leaders. The type II label is self-claimed by a company based on its own assessment
of a product over two points in time. The type III label, which also involves a third
party, provides quantitative data over a set of criteria based on the assessment of
how a product affects the environment throughout its life cycle. While eco-Iabels help
a firm project its green image and allow it to move its products across national
boarders, it is not easy for a firm to reconcile the different set of criteria used by
different eco-labels. Thus, a firm may not benefit the most from its quest to be green
by pursuing eco-labels alone.
Many well-managed manufacturing firms have begun to venture into new
business practices founded on disassembly and component reuse. Two interrelated
management principles have emerged: design for disassembly and product recovery
management. Design for disassembly calls for practices such as using modular
components, deploying snap fits in lieu of screws, substituting harmful substances

Revision received September 2003.

tCalifornia State University San Marcos, College of Business, High Technology
Management Department, San Marcos, CA 92096, USA.
tUniversity of California Irvine, Graduate School of Management, Irvine, CA 92697,
USA.
"'To whom correspondence should be addressed. e-mail: sjorjani@csusm.edu or sjorjani
@uci.edu.

International Journal of Production Research ISSN 0020 7543 prinl/lSSN 1366-588X online ,<" 2004 Taylor & Francis Lid
http;llwww.tandf.co.uk/journals
001; 10.1080/00207540310001632466
 1132 S. Jorjani et al.

with safer and greener materials, and making high-value components easily
accessible. Its objective is to reduce waste from its origin and to optimize the
return from reusing and recycling components extracted from used products.
Some environmental laws and regulations require manufacturers to take back
products at the end of product life. Many big corporations also have begun to include
take-back clauses in their purchase orders. Product recovery management deals with
infrastructures needed for product take-back and explores options for component
reuse. The driving issues pertaining to product recovery include the deployment
of reverse distribution and the optimization of return from disassembling
retired products. When components are extracted from a product, there are several
options to extend component life and conserve natural resources. For example, a
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component could be refurbished and used as replacement parts. A component can

also be sold to toy makers. Alternatively, a manufacturer can elect to send the
component to a landfill. These different uses involve tradeoffs in terms of costs, profits
and environmental impacts.
The purpose of this study is to present an optimization model to assist
manufacturers in managing product recovery. A sample case is used to illustrate
the proposed mathematical model. The rest of the paper is organized as follows.
Section 2 gives a brief review of the related research. Section 3 highlights the details
from which the model is generated and defines the possible disposal options. Section
4 gives a piecewise linear concave model. In section 5, a case example using actual
data from a major electronics manufacturer is used to illustrate the use of the model.
Conclusions are presented in section 6.

2. Literature review
Fleischmann et al. (1997, 200 I) categorize logistics activities in reverse logistics
into the three areas of distribution planning, inventory management and production
planning. They provide a comprehensive review of the literature as it pertains to
inventory and distribution planning. In addition, Fleischmann (200 I) provides
a comprehensive review of operations management-related literature in reverse
logistics. This section adopts their framework and reviews the relevant literature
on production planning as it relates to this research. Traditional production
planning methods work well when material recycling is performed, but new
questions arise when there is a need for the disassembly of recovered products.
These questions include the design, the sequence of the disassembly, the degree
and extent as well as the details to which a product is to be disassembled (Krikke
et al. 1999). Consequently, disassembly is divided into three categories. The first
category deals with design for disassembly and recyclability. This research has
been given significant attention in the engineering sciences (Kriewet et al. 1995).
Ferrer (200 I) shows how design can affect recovery and introduces a framework
for designing an efficient remanufacturing process for a product at the end of its
useful life. The paper introduces measures of recyclability, disassemblability and
reusability for use in a heuristic.
The second category deals with the levels and sequence of disassembly. The models
allow for disassembly to the extent that there are economical benefits associated with
it. Johnson and Wang (1995) designed a four-level approach to the disassembly
problem. Their objective was to find the optimal disassembly sequence that maximizes
recovery revenue and is constrained by the disposal and disassembly costs. Their
 Model for the allocation of electronics components to reuse options 1133

lllodel introduced a method for prioritizing the disassembling of parts that provide
higher economical benefits.
Penev and De Ron (1996) used the shortest path algorithm to determine the
Optimum disassembly sequence of preselected components that adds most value
and then allows for additional disassembly as long as the benefits of disassembling
a certain component outweighs its related costs. Krikke et al. (1996) used a stochastic
lllodel to determine quality classes for the condition of used materials and estimate
the quality of the disassembled components given the estimated probabilities of the
quality of the original product. Sodhi et al. (1999) discussed bulk recycling. They
Used a dynamic programming model to isolate the recovery target materials in
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a batch. Using weight differential in a batch as a criterion, their model minimized

the number of steps necessary for separating a predetermined amount of material in
a given lot.
Finally, the third category of models determines the optimum allocation
of disassembled products to different disassembly options. The literature in
this area of research is product specific. Splenger (1997) developed an Mixed
Integer Programming (MIP) for the allocation of industrial by-products of the steel
industry and one for in the construction industry.
Ammons et al. (1997) also developed an MIP to support efficient design and
Operation of reverse production systems associated with carpet recycling. In addition
Material Requirement Planning (MRP) and reverse MRP model concepts have been
applied to determine the levels of disassembly, i.e. the extent to which products
should be disassembled depends on the cost of disassembly. These approaches basi-
cally use the reverse Bill of Material (BOM) to account for every returned product,
its components and the processing times used to disassemble them (Thierry 1997).

3. Problem definition
Many countries have enacted environmental laws with the scope ranging from
banning equipment with permanently installed batteries containing heavy metals
such as cadmium, mercury and lead to mandating manufacturers to take back
obsolete hardware. Instead of regarding these laws as impeding regulations, many
international firms are embarking on new initiatives and rethinking their business
strategies to turn compliance with environmental laws into a valid marketing
argument. For example, firms are beginning to take a 'from cradle to grave'
approach to assessing the overall negative effect of a product on the environment.
This has resulted in new business practices such as design for disassembly, which
aims at reducing waste from the source. In addition, this effort also enables a firm to
reduce its production and disassembly costs as common parts and easier installations
become one of the core principles incorporated into the design philosophy.
However, executives must also make their decisions regarding how to deal with
retired products because they are the major contributors of the rapid growing
Waste stream. It is estimated that some 20 million personal computers have
become obsolete as of today. Very few of these computers are 'reused' or 'recycled'.
The number of outdated computers is expected to grow to 63 million by 2005
(comprenew.com, 2002). Together with other electronic products, many hazardous
materials and toxic substances will pose serious environmental risks if they are not
properly managed at the end of life.
Companies such as Hewlett-Packard, IBM and Canon are making product take-
back a formal business policy. They have discovered that product take-back itself
 1134 s. Jorjani et al.

can add to their bottom line if the lives of disassembled subassemblies, parts and
materials are extended. First, parts of good quality and comparable with the new
ones can be refurbished and become the so-called 'equivalent to new' (ETN) parts.
ETNs typically are used as replacement parts in field service, and some ETNs have
proved to be more reliable than their new counterparts. For example, ETN memory
and printed circuit boards tend to have passed the break-in period during which
most latent defects would have surfaced. ETNs are highly profitable and can free
some production capacity, which otherwise must be devoted to manufacturing
service parts. However, ETNs also incur inventory costs and have a limited shelf
life as they may be replaced by the newer technologies. In other words, ETNs tend
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to have a diminished return when a large quantity of recovered components is

dedicated as ETNs.
The life of a functioning component can also be extended by selling it to other
industries. This use of recovered parts is termed the 'resell' option. For example,
obsolete central processing units and printed circuit boards extracted from retired
personal computers and other devices can be sold to toy manufacturers, who can
install them in 'high-tech' toys. In order to make the resell option valid, there must
be a sufficient quantity and steady stream of the same parts available so that a
supplier relationship can be established. The resell components are required to go
through a testing process and represent a modest return.
An environmentally friendly manufacturer can also elect to dispose of compo-
nents extracted from retired products without testing or refurbishing. This way of
extending component life is termed the 'reuse' option. This may be due to a lack of
testing capability or a deliberate economic decision if the testing cost is prohibitive.
Since the component is sold 'as it is', it usually commands a lesser price than the
resell components. Similar to the resell option, a steady stream of supply and a large
quantity of the same components are necessary ingredients to justify this endeavour.
Valuable resources can be conserved through renewing recyclable materials such
as high-grade steels, precious metals, plastics and glass. This is termed the 'recycle'
option. The recovery process, however, is not necessarily easy or cheap. For
instance, plastic components need to be sorted, and labels and adhesives must be
removed before they can be ground into small pieces and sold to material makers.
Therefore, the return from recyclables in most occasions is marginal at best. Note
that electronic products contain only a small amount of precious metals such that
they do not generate a significant income for the manufacturer. Much research has
been devoted to automate the sorting and the preparation processes. For example,
a leading electronics manufacturer has deployed specially designed shredders for
bulk recycling. After parts are extracted for ETN, resell and reuse, and any leftovers
are broken down into tiny pieces. These pieces are then automatically separated by
a series of separators and magnets based on weight and other properties. This
process can process up to £4 million a month of used equipment and has significantly
reduced the need to send electronic waste to landfill. This recycle option will
undoubtedly become more attractive over time.
Regardless of how used products are disassembled. hazardous materials and
toxic substances must be extracted and processed to minimize their negative effects
on the environment. While it is vital to do so, hazard reduction does not produce
tangible financial return. The present study treats this as a cost shared by ETNs,
resell, reuse and recycle options.
 Model for the allocation of electronics components to reuse options 1135

Materials that do not contain environmentally harmful substance and are not
Worthy of any forms of reuse and recycle are incinerated or sent to landfill. This is
termed the 'landfill' option. The manufacturer must pay the landfill cost, and this
OPtion might tarnish an environmentally friendly image if landfill becomes excessive.
Therefore, most manufacturers set a limit with regard to how much waste can be sent
to a landfill. For example, one well-known manufacturer landfills no more than 3%
of its total waste with a goal of achieving a I % target.
Given the above five possible options (ETN, resell, reuse, recycle, landfill),
~anagers must determine the allocation of the components of disassembled products
IOto disassembly options so that the overall return is maximized and the negative
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environmental impact is minimized. This is called the disassembly optimization

decision. In the present study, a mathematical program with a piecewise linear cost
function is proposed to assist decision-makers in this endeavour. In the authors'
opinion, design for disassembly and disassembly optimization are the two
Cornerstones of green manufacturing. These two principles can help turn environmen-
tally friendly effort from merely complying with impeding laws into a value-added
proposition and change a compliance mentality into a profitable business incentive.

4. Proposed model
The present paper develops a piecewise linear program that allocates components
of used products to various disassembly options available to the manufacturer.
Splenger (1997) developed a similar model for the steel and construction industry.
The model in the present paper extends Splenger's work by incorporating a piece-
Wise linear concave cost function as well as additional landfill capacity constraints.
The disassembly options considered are recycle, ETN, reuse, resell and landfill, as
discussed above. There is return associated with most of the options; however, the
rate of return decreases as the volume available to the option increases for a subset
of components. There is also a cost associated with disassembling a used product.
The landfill option is very unattractive and there is a limit imposed on the amount of
landfill the company can produce. It is envisaged that the model would be resolved
each period (e.g. per week or per month) so that the available inventory of used
products would represent collection over that period.
The model is given below:
index for components i = I, ... , m,
j index for products j = I, ... , n,
I index for reuse options 1= 1, ... , 5.
Reuse options are: recycle, ETN, reuse, resell and landfill.
DeCision variables
x) number of product j to disassemble; j = I, ... ,n,
Yi number of disassembled components i, i = I, ... ,m,
rif amount of component to be used by option I.
Parameters and coefficients
Cj disassembly costs of disassembling product j,
Yo initial number of already dismantled components,
vi} number of dismantled components i resulting from disassembling one of
productj,
 1136 S. Jorjani et al.

Ci/(.) proceeds per pounds (lb) of disassembled component i, which is recycled by

reuse option t. This cost is piecewise linear concave,
Qf capacity of option I,
~ available inventory,
p maximum allowable percentage sent to landfill,

max L L Cif(ri/) - L CjXj,

i i j

subject to:
= Yo + L ViiXj, = I, ... , m.
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Inventory balance on components: Yi i (I)

j

Reuse balance: L ri/ = YiYi,

f
i = I, ... , m. (2)

Capacity: L ri/ ~ Qf, 1 = 1•... ,5. (3)

i

Landfill: L ri5 ~ P LYiYi, i

i =1= 5. (4)

Inventory: Xj ~~, j = I, ... ,m. (5)

The above is a piecewise linear programming formulation of this problem where
the objective is to maximize the return. For most components, Ci/(.) is a linear
function; however, for some components, Ci/(.) is a piecewise linear concave function
representing the fact that the proceeds from these options decrease as the availability
of the components becomes more abundant. In these cases, Ci/(.) is as defined as
follows:
CI,r.,
I I for 0 -< r", < b l,
I _ I

Ci/(ri/) = Cnri/ for bIf < ri/ ~ bn,

1 C~ril for ril > bTl
where b is the limit over which different returns apply. Here cfl> > C~, Cn
where Cj is the cost associated with disassembling product j. This cost includes the
disassembling time as well as shipping and handling costs involved in obtaining the
product.
Constraint (I) is the inventory constraint for all the components resulting from
disassembling product j. Vii is obtained from the BOM of the product. Constraint (2)
converts the inventory of dismantled components from units into weight amounts;
this is done since the proceeds are usually calculated per unit weight rather than per
unit. Y is calculated by summing up the weights of a particular component
and averaging over all products that contain that component. Constraint (3) is the
capacity constraint ensuring the amount of a component used for an option does not
exceed the capacity available for that option. Constraint (4) is the landfill constraint,
restricting the company not to exceed a p% limit on the landfill option where p is
a predetermined value. This may not be generic but was in effect for the electronics
manufacturer with whom the authors worked. Constraint (5) is the inventory
constraint ensuring that the products disassembled do not exceed the available
 Model for the allocation of electronics components to reuse options 1137

inventory. For the company considered in the case below, the goal was to reduce
p Continually and to send any excess material to a shredder.
Note that the allocation problem was modelled as a piecewise linear concave
program in order to capture decreasing marginal proceeds on certain recycled
components; a pure linear program does not do this. This has the effect of increasing
the dimensionality of the mathematical program since each variable that relates to
such a component is replaced by say three variables. However for electronic
products, only a few of the components are sufficiently valuable to be treated in
this way. In the present case, four components only exhibited appreciable decreasing
returns to scale; the reminder are treated as pure linear variables. Consequently the
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reSUlting increase in dimensionality of the mathematical program is not significant

and solves almost as quickly as a pure linear program. Given the current state of the
art of mathematical programming algorithms, the authors do not envisage any
computational difficulty treating this nonlinearity for other electronic products.
All Our computational experiments bear this out. Further, given the large numbers
of components involved and the lack of precision in the cost/proceeds data, there
does not appear to be any reason to add to the computational burden by treating all
variables as integer. Our experiments with integer programming formulations did not
yield significantly different results but merely added considerably to computational
difficulties.

5. Case example
Using data provided by an electronics manufacturer, an example is given below
of the methodology. Specifically, the disassembly of five of the manufacturer's
products (two printers and three fax machines) into 38 identifiable distinct compo-
nents, which may be disposed of in five ways as listed above, is considered. Detailed
data are given in appendix 1. Note that for the majority of components, there are
linear proceeds resulting from disposal, but for a subset of four components, the
proceeds are a concave piecewise linear function. This reflects the fact that as more
of a component becomes available from disassembly, unit proceeds decrease due to
an excess of supply. Hence, unit proceeds must be reduced in order to sell them off.
For example, a particularly valuable component, say 'Boards', generates proceeds of
$25 per unit if used as ETN for the first 1000 units, $22 per unit for the next 1000
and $19 per unit afterwards. Disassembly cost is linear in terms of the number of
unit products broken down into components.
The model is coded in the AMPL language, and the AMPL data file constructed
from the data is shown in appendix I. This results in a piecewise linear maximization
program with 175 natural variables and 87 constraints. Since the resulting program
is convex, the optimal solution if one exists is guaranteed. A solution is afforded
Using the OSL solver as a linear program. Although strictly the variables are integer,
giVen the nature of the problem, it was not deemed necessary to solve as an integer
program.
The solution is shown in figure I. Nodes on the left denote the five products
and their corresponding inventory. For example, there are 300 units of the
1200C_Printer. In the base case, the entire product inventory is disassembled due
to adequate capacity being available. Disassembly of these products results in the
components. Note, for example, that 300 units of the 1200C_Printer generate the
following components as indicated to the right of the relevant node: 1200 ABSs,
4800 PCs, 3900 PPCj ABSs, 1500 PEs, ... ,200 switches, 200 wire harnesses, and 1200
 1138 S. Jorjani et al.

12CX)A8S

_4100I'C _ __
3900 I'PC/ ASS

2(X) SWlll.h
2()O()Wireh,lrnc,~
1200 Ilo..nh
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12f'K)()ABS
I(XX)PC'

Ofhl.:c Jet ,.. IOO()

IIM)O ADS
11200 PC

4000 Ilu;4l1h,

'1m AA,
'iH.'OChp,

4,onU"ard,

'i7UOABS

IHIM) Pc.:

1 ~(X)Swllr..h
('(MJ\\Iuuh.w,
21000u;lrd,

Figure I . Optimal solution of the base case.

boards. Details of the data source for the breakdown of the l200C_Printer are given
in appendix I. The aggregate number of each component is given in the associated
node in the middle of figure I. Breaking down all of the available products results
in , for example, 900 in sulators . These are then converted to a unit of weight (Ib) and
distributed to the five reuse options portrayed as nodes on the right. For example, the
900 insulators weigh 15.031b and are sent to the landfill. Arcs between components
and reuse options represent flows of components with only non-zero flows being
noted for the base case. Numbers on these arcs represent the actual product flow
 Model for the al/ocation of electronics components to reuse options 11 39

Sensitivity Capacity ETN

117000 ..------~----------.,
116000

115000

-
~
n.
114000

113000

112000

111000

110000
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109000 -l-------.----r----.----r-----l
2 3 4 5
Capacity - ETN

Figure 2. Sensitivity charts for capacity changes of the ETN option.

Sensitivity Capacity Recycle

140000
120000
100000
80000
60000
40000
~
n. 20000
0
-20000
-40000
-60000
-80000
Capacity - Recycle

Figure 3. Sensitivity charts for capacity changes of the recycle option .

measured (Ib) . In the base case, note that most components are sent only to one
reuse option. The on ly exception is 'boards', which is split between ETN and reu e.
Tn order to gain in ight into the solution, a sensitivity analysis is conducted on
various parameters. Noting that the solution is driven by the constra int on disposal
capacity, sensitivity of profit is examined with respect to changes in available
capacity. In the base case, only the capacity for ETN is fully used; all other four
Options are not fully used as evidenced by the non-zero slacks associated with them .
In the case of the capacity for ETN, the dual price is 0.3, indicating that each
additional unit of TN capacity available will increase profits by $0.3. Results are
given in figure 2. As the capacity of ETN drops below the ba e value of 10000 units,
profit drops ofT significant ly, whereas as capacity is increased, and overa ll profit
increases on ly marginally . This suggests it is important to ensure that adequate
capacity but not excess is needed to keep profits high. When capacity is too high,
the limited inventory of product restricts further increases in profit.
Similarly, sensitivity curves are constructed for the options of recycle and reuse
(figures 3 and 4). It was found that resell and landfill were insensitive to changes in
capacity.
 1140 S. iorjani et al.
Sensitivity Capacity Reuse
116250
116249
116248
116247
... 116246
~ 116245
Q. 116244

116243
116242
116241
116240 +--r----,,...---,---,----.--.--..,.---r--..---l
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2 3 4 5 6 7 8 9 10
Capacity - Reuse

Figure 4. Sensitivity charts for capacity changes of the reuse option.

In the base case, the entire inventory of products is fully used . (Given the positive
value of components, this will generally be the case if sufficient reuse capacity is
available.) From the dual variables in the solution printout, it follows that the
marginal value of each additional product is as follows: 1200C_Printer $130. 10,
900_Fax $148.80, 950_ Fax $147.70, EWOK_Fax $ 136.60, Office Jet $139.30.
Although management does not strictly control the receipt of used equipment,
these values suggest that management should perhaps make a stronger effort in
collecting Series 900 and 950 fax machines.
Next , the deployment of components to the various disposal options is examined.
Define the per cent of components sent to option / as:

= (I:ril/I:I:ril)
I I I
x 100.

The above operational measure ' per cent' is examined under the following three
scenarios:
Scenario I: Base case.
Scenario 2: Replace the proceeds of boards by 0.33 and motors by 0.5 of its
original value. All other values remain the same.
Scenario 3: Replace the proceeds of boards by 3 and motors by 2 times of its
original value . All other values remain the same.
The results are given below in figures 5- 7.
In the base case, a significant portion of the components is sent to recycle
(75 .67 % ) with 20.47 % going to ETN. Note the very limited amount going to
the landfill option and hence the manufacturer's landfill constraint is inactive at
optimality. Consequently, if the company find s it sufficient ly profitable to get a
positive return from used components, there is less press ure to use valuable landfill
space. Note that the percentage sent to ETN, recycle and landfill are invariant in the
three scenarios. However the per cent sent to the resell a nd the reuse options do
change somewhat in these scenarios. Further testing the sensitivity of the percentage
sent to each reuse option by varying a ll the proceeds indicates minimal sensitivity to
the base case. Given the market uncertainty of selling prices or components, this is
 Model for the allocation of electronics components to reuse options 1141

8aseCase

DAeuse
o Rese"
- Landfill
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Recycle
75 .6709%

Figure 5. Per cent allocated in the ba e casco

1/3*Proceeds
Reuse

CRouse

o Re.ell

Recycle
76.0002%

Figure 6. Pcr cent allocated in scenario I.

a fortuitous result in that one can be reasonably confident of an optimal mix of

reuse options under widely varying component prices.

6. Conclusions
Product recovery management has emerged as an important field in envi-
ronmentally conscious manufacturing practice. In certain uropean cOLlntrie,
product recovery is mandated by law; in others such as the USA, it may be a viable
profit-generating activity or minimally a social obligation of large manufacturing
firms .
The present paper provides a generic model for the disassembly of electronic
products into components and the subsequent dispersal of these components to
 1142 S. Jorjani et al.

3* Proceeds
Resell
Reuse 1.3276%

C Recycle
-ETN
CReuse
o Resell
-Landfill
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Recycle
75.6644%

Figure 7. Per cent allocated in scenario 2.

final disposal options. The model is a piecewise linear mathematical program that is
convex and solved using AMPL/OSL. A case study involving five electronic products
is given. Given the positive return associated with many components, it is shown by
the model that, at least for the products considered, disassembly strategies add to the
bottom line profitability of the manufacturer. The model breaks each product down
into its components, aggregates the components into 38 distinct classes and a llocates
them to five disposal options. A graphical representation of this process is given.
Given sufficient capacity, components will be sent to one disposal option, genera lly
the one with the highest return. Otherwise, dispersal to several disposal options will
occur. In the latter case, the value of additiona l capacity is given by the dual price
associated with the capacity constraint. This allows management to determine
quickly where additional capacity is most beneficial bearing in mind forecasted
receipt of used products. The model a lso a llows management to identify those prod-
ucts that have the greatest potential in increasing profits, thus suggesting where
collection effects should be focused .
In looking at the percentage of component sent to the different disposal options,
a high degree of insensitivity to the different scenarios is found. This in turn implies
that approximate values for the return generated by individual components wi ll yield
near-optimal results. Finally, note that the landfi ll constraint is inactive at optimality
and hence the manufacturer is meeting its socia l responsibilities in ensuring that
minimal waste is added to landfill.
A direction for future research would be to address this problem from a multi-
criteria point of view. The electronics manufacturer with which the authors worked
was concerned with a single objective of maximizing revenue while meeting their
corporate goal with regard to landfill use. However, a goal-programming model
cou ld be developed to address simultaneously goals of cost, environmental impact
and recovery targets.

Acknowledgments
The authors appreciate the assistance of M I' Harold Phillips, Senior Quality
Engineer, at the HP Rancho Bernardo site in San Diego, CA.
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Vij c·,u ~
~
-.
1200C Office 900 950 EWOK
Parts Printer Jet Fax Fax Fax gi Yia Recycle ETN Reuse Resell Landfill ~
...
...:::-
~
Plastics
I:l
ABS 4 12 29 2 19 0.2532 0 0.00 -10.00 -10.00 -10.00 -0.30
PC 16 10 28 6 0.1257 0 0.08 -10.00 -10.00 -10.00 -0.30 ~
I:l
PC/ABS 13 0.3538 0 0.04 -10.00 -10.00 -10.00 -0.30 '~."'
PE 5 3 0.0250 0 0.10 -10.00 -10.00 -10.00 -0.30 ::
PP 0.3500 0 -0.05 -10.00 -10.00 -10.00 -0.30
~
PPE + PS 0.1000 0 0.01 -10.00 -10.00 -10.00 -0.30 ~

PPO 18 0.2111 0 0.03 -10.00 -10.00 -10.00 -0.30 ~

PS 21 10 0.3419 0 -0.06 -10.00 -10.00 -10.00 -0.30 ...'...c"'
Other 2 55 66 93 62 0.0097 0 -0.07 -10.00 -10.00 -10.00 -0.32 ::
;:;.
Metal
Aluminium 2 0.0500 0.28 -10.00 -10.00 -10.00 -0.23
0
'"c
'"'
Copper 4 1 4 0.0129 0 0.47 -10.00 -10.00 -10.00 -0.23 ~c
High Grade Steel 22 27 33 4 20 0.0105 0 0.04 -10.00 -10.00 -10.00 -0.23 ::
~
Sheet Metal 12 9 22 42 9 0.3377 0 0.01 -10.00 -10.00 -10.00 -0.23 ::
Hardware -...'"
Battery I 0.0100 0 -0.14 0.10 -10.00 -10.00 -0.23 c
Bearings 1 0.1100 0 -0.05 0.29 0.06 om -0.23 ...
~
;::
Belts 3 0.0150 0 -0.05 0.50 0.25 0.10 -0.23 ~
Bushings 4 0.0075 0 -0.01 0.03 0.02 om -0.23 '"
Clips 13 0.0015 0 -0.02 0.20 0.10 0.10 -0.23
.g
Fan 0.2000 0 om 1.00 0.50 0.35 -0.23
g.
::
Fan Filter 0.0020 0 -10.00 -10.00 -10.00 -10.00 -0.23 '"
Gears 8 32 16 0.0625 0 0.00 1.00 0.05 0.70 -0.23

Appendix I. Data tables. -~

......
 Downloaded by [Library Services City University London] at 15:34 21 March 2016

Vi} C"lU
"'"'""
1200c Office 900 950 EWOK
Parts Printer Jet Fax Fax Fax gi )'. Recycle ETN Reuse Resell Landfill
• /0

Insulators 3 0.0167 0 -10.00 -10.00 -10.00 -10.00 -0.23

Labels 2 I 6 0.0009 0 -0.05 -10.00 -10.00 -10.00 -0.23
Magnets 5 3 2 0.0070 0 0.02 0.10 0.06 0.Q7 -0.23
Mirror I 4 2 3 0.0080 0 -0.02 0.70 0.25 0.35 -0.23
Motors 3 3 3 2 4 0.3960 0 0.30 * 2.00 2.50 -0.23
Optical System I I I I 0.0375 0 -0.15 ** 2.00 2.00 -0.23
Outlet (A/C) I I 0.0200 0 -0.01 2.00 0.50 0.45 -0.23
Outlet (PIS) I I 0.0200 0 -0.01 2.00 0.50 0.45 -0.23
Rubber 27 20 8 8 14 0.0164 0 -0.10 -10.00 -10.00 0.10 -0.23
Screws 66 83 ]]4 102 134 0.0042 0 0.05 -10.00 -10.00 -10.00 -0.23 ~
Shafts 5 8 9 13 8 0.0333 0 0.05 0.20 0.07 0.10 -0.23
Speakers I 2 I 0.0250 0 -0.10 *** 1.00 2.00 -0.23
~
..:::!::l'
Springs 14 8 14 16 13 0.0012 0 0.05 -10.00 -10.00 -10.00 -0.23
~.
Switch I I 5 0.0357 0 0.01 3.00 2.50 2.00 -0.23 t'I>
Windows I 2 0.0067 0 -0.01 -10.00 -10.00 0.01 -0.23 .....
Wire Harness 10 8 14 17 15 0.0255 0 0.05 -10.00 -10.00 0.05 -0.23 e.
CS
Boards 6 8 10 10 7 0.2605 0 0.83 **** 7.00 1.60 -0.23
Disassembly cost ($) 3.26 3.83 3.50 4.98 3.52 Q/ 50000 10000 16000 24000
*Unit profit for motors: for ETN = $5 if y.:s2000, $3 if 2000.:sy.:s3000 and $1.5 if Y:::3000; **units profit for optical systems for ETN = $6 if y.:s700, $4 if
700 .:s y .:s 1500; and $2 if y::: 1500; ***units profit for speakers for ETN = $5 if y .:s 600, $3 if 600 .:s y .:s 1300 and $1 if y::: 1300; **"units profit for boards for ETN = $25
$25 if y .:s 1000. $22 if 1000 .:s y .:s 2000 and $19 if),::: 2000.
Appendix I. Continued.
 Model for the allocation of electronics components to reuse options 1145

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