Upgrade-Remanufacturing Option Selection for GHG Saving Rate and Profit Using 0–1 Integer Programming

In order to cope with the issues of global warming and the depletion of natural resources, manufacturers need to reduce greenhouse gases (GHG) emissions and consumption of natural resources economically. Upgrading and remanufacturing emerge as effective ways for mitigating both of GHG emissions and waste by conserving virgin material production with associated GHG emissions for assembly products. Hence, End-of-Life products should be upgraded or remanufactured based on their conditions and values. However, due to physical and value lifetimes, there are cases that upgrading or remanufacturing are not suitable. Part reuse and material recycling would be better ways rather than upgrading or remanufacturing at those cases. Moreover, even though disassembly is an essential phase for recovery options such as remanufacturing, upgrading, part reuse, and material recycling, it is costly due to labor costs for manual disassembly tasks. Therefore, life cycle option selection including remanufacturing, upgrading, reuse, and recycling needs to be conducted environmentally friendly and economically for sustainable manufacturing. This study proposes an upgrade-remanufacturing option selection for both material-based GHG emissions and profit adopting 0–1 integer programming. First, a bill of materials (BOM) is prepared. Next, the upgrade-remanufacturing option selection is formulated adopting 0–1 integer programming with ɛ constraints, where the objective functions aim to maximize profit and the GHG saving rate. Finally, the proposed upgrade-remanufacturing option selection is validated.