An investigation of the value recovery process in the automotive remanufacturing industry: an empirical approach

Remanufacturers have been experiencing challenges when optimising the value recovery process mostly due to the uncertainties of cores regarding quality, quantity, arrival time and demand. Hence, the aim of this study is to gather relevant information from the literature and current industrial practice and then define research gaps to improve the decision-making practice for managing value recovery processes in the automotive remanufacturing industry. The case studies used in this paper are an original equipment remanufacturer and a contract remanufacturer. Both companies in the case studies use credit-based systems to take back old cores which can reduce the severity of cores’ unavailability. The ability to access the parts and specifications of the original equipment was the primary factor considered by the contract remanufacturer before deciding to remanufacture the product. In daily operations, the condition of cores was the main factors the OER and the contract remanufacturer considered to make a decision. Finally, the results of this study indicate further research areas from the intersection of industry’s needs and research gaps.