A model for optimizing remanufacturing quality strategy by considering quality loss function

Satisfying different consumer preferences was a vital aspect in remanufacturing strategy when remanufacturer faced a problem of customer willingness to pay to the remanufactured product. However, a strategy to minimize only the remanufacturing cost means that it does not take into account the cost to consumers due to remanufactured product variability, as well as the cost of remanufacturer to achieve the required specifications by consumers. In order to balance the cost of losses due to the remanufactured products variability that consumers received it and the costs incurred by remanufacturing to achieve product specifications are by considering the quality loss function. In this paper, we apply Taguchi's quality loss function in a model for remanufacturing quality strategy. A numerical example is presented in this work to give the illustration of the proposed model solution and application.