A multi-method simulation approach for evaluating the effect of the interaction of customer behaviour and enterprise strategy on economic viability of remanufacturing

The economic viability of remanufacturing is shown to be significantly affected by the interaction between customer behaviour and strategic decisions of the manufacturer. The paper investigates this interaction using a multi-method simulation model combining a multi-agent-based model of customers and a system dynamics based model of the remanufacturing enterprise. The model uses validated approaches for each component and is used to investigate, analyse and forecast the long-term effects of strategic decisions of the remanufacturing enterprise on customer behaviour and the consequent effects on the business environment that determine the profitability of the enterprise.