MODELLING TIME-VARYING VALUE OF AN END-OF-LIFE PRODUCT FOR DESIGN FOR RECOVERY
DS 68-5: Proceedings of the 18th International Conference on Engineering Design (ICED 11), Impacting Society through Engineering Design, Vol. 5: Design for X / Design to X, Lyngby/Copenhagen, Denmark, 15.-19.08.2011
Editor: Culley, S.J.; Hicks, B.J.; McAloone, T.C.; Howard, T.J. & Malmqvist, J.
Author: Kwak, Minjung; Kim, Harrison
Section: Design for X, Design to X
Estimating residual value of an end-of-life product is an essential preliminary to design for recovery. This paper presents a quantitative model for estimating time-varying value of an end-of-life product. The model estimates the expected economic value of a product by considering two major depreciation factors, physical deterioration and technological obsolescence. The developed model is illustrated with an example of desktop computer and potential applications to design for recovery are presented. The model can contribute to enhancing the residual value of a product and/or improving the way of retrieving the residual value. It can also assist the recovery system design, such as product take-back planning and recovery strategy planning.
Keywords: TAKE-BACK; REMANUFACTURING; PRODUCT REUSE; END-OF-LIFE; DESIGN FOR RECOVERY