Analytical Model - Assessing the performance of new business models
The analytical model compares the performance of the linear conventional business with that of potential closed-loop scenarios.
The analytical models calculate the performance based on specific scenarios for the business model, supply chain and design. For each scenario, a number of parameters related to cost (production costs, forward and reverse logistics costs, costs of the recovery process, management costs, and end-of-life costs) can be entered to calculate the performance of the system. Critical factors, for example the remanufacturing success rate, return rate, lease conditions, and lifespan of products can be modified to test different cases. Necessary investments costs for design, reverse engineering, or remanufacturing facilities can also be included where needed. CO2 calculations are added to the tool to give insights into the environmental performance.