A Cost–Benefit Model for Sustainable Product Reuse and Repurposing in Circular Remanufacturing

Abstract

This study developed and validated cost–benefit models to evaluate the economic feasibility of reuse and repurposing strategies in remanufacturing, utilizing activity-based costing to assess key financial factors and implications. The models provide a structured approach to compare reuse, repurposing, and recycling, focusing on identifying conditions that maximize cost savings and reduce environmental impact. Reuse strategies emphasize scenarios requiring minimal maintenance to extend product life, while repurposing explores transformations for new applications when direct reuse is not feasible. By quantifying reuse and repurposing costs, the models help manufacturers identify sustainable lifecycle extensions that support circular economy principles. The results demonstrate that reuse and repurposing are particularly advantageous when products retain significant remaining useful life. These models serve as practical tools for industries aiming to implement resource-efficient practices that enhance both economic resilience and environmental sustainability. Furthermore, these models can be adapted for specific industrial applications and enhanced with real-world validation, providing companies with actionable insights to further refine cost-saving and environmental impact predictions. This study addresses gaps in the current literature by presenting tailored cost assessment tools for circular remanufacturing, promoting informed decision making for sustainable manufacturing.

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