The Formation Factor of Product Circulation Businesses on Cascade Reuse

Abstract

In Japan, "Basic Law for Establishing a Recycling-based Society" has been established and the activities of reduce, reuse and recycle are promoted. However, the formation of the circulation business, which is economically reasonable for both users and manufactures, is highly demanded. There are some route on the form of product circulation : Product reuse of used products, Parts reuse taken out from used products, Material recycling after used products are crushed. However, material recycling is not concluded economically except some expensive materials. It is an important for the circulation business strategies how much they would add the operation to used products and how much they re-sell the reused products that have value added. On example of personal computers, automobiles and household electric appliances, the circulation business in which the used products are re-sold as junk products becomes active in these days. This cascade reuse is concluded by matching of the users who dispose a used product and the used that want to obtain them. In this study, modeling the relation of price point and cost considering each process such as used product buying, transportation, reproduction, and resale is done. And this paper indicates the possibility to create the added value by cascade reuse. And a simple simulation using an example and arranges the formation factor of cascade reuse.