Considering modular level of product to minimize cost in reverse logistics

Recently, with the rise in environmental concerns, the reverse logistics have emerged. For the recycle of returned products, in addition to decomposition to selling, there is a method to make manufacturer reduce cost to import modularity production, its useable products can be consist of the number of modular components. The products can be dismantling after returned, and these products broken down into many higher residual standardized components, so that manufacturers can reuse these components. This research mainly examined the material and cash flow of modularity product in the reverse logistics, and discussed the variation of modularity level to the effect on recovered cost, inspection cost, component ordering cost, and manufacturing cost. And obtained what modularity level will make the optimal effect on the various cost and total cost.