Economic Potential for Remanufacturing of Robotic Lawn Mowers with an Existent Forward Supply Chain : A case study on Husqvarna

Abstract: This project investigates how remanufacturing of robotic lawn mowers can be incorporated into an existent forward supply chain. The project is conducted as a single case study on Husqvarna where an interview study and a literature study provide the empirical data and theory, respectively. Alternatives are proposed for potential remanufacturing cases at various locations, where different parties ranging from original equipment manufacturers to independent manufacturers perform the remanufacturing process. SWOT analyses are conducted to identify the most promising alternatives for a further economic analysis. The economic evaluation is based on net present values and a sensitivity analysis which together determines the feasibility of the alternatives. The results of the project answer three research questions. The first concludes that out of seven defined production systems there are only two that are not suitable for remanufacturing in a general case mainly due to the low flexibility of these systems. The results of the second identifies labor, logistics, and operational prerequisite factors that must be considered when implementing remanufacturing for case specific alternatives. The conclusion of the third research question lists the feasibility of the alternatives from which the recommendations for Husqvarna are presented. This project recommends Husqvarna to implement a remanufacturing process for their robotic lawn mowers either by enlisting their current dealers or by themselves at a location nearby the spare parts warehouse in Torsvik. Which alternative is the most profitable depends mainly on the expected quantity of the acquired cores, i.e. Husqvarna as a centralized remanufacturer benefits more from higher quantities while the decentralized dealer alternative would comparably be more profitable if the quantities were lower. As it is perceived that initial collected quantities will be low, and possibly even somewhat higher for the dealers, a decentralized remanufacturing process could be the most profitable alternative to start with. Using a third-party remanufacturer is also feasible but considered risky and therefore not recommended as they could have the same core acquisition problem as Husqvarna while having lower profitability.