An Optimal Timing of Engine Remanufacturing – A Real Option Approach

摘要

A real option approach for determining the optimal timing of engine remanufacturing is proposed based on the average environmental impacts valuesFiby numerical analysis. Life cycle assessment method is conducted to calculate the total environmental impactEItotalof the four life cycle stages, including original manufacturing, first time usage, remanufacturing, and second time usage. Accumulative environmental impacts of the usage periods are calculated by the integral method. Fiis calculated by dividingEItotalby total driven mileage. Theoretical minimum ofFi(Fmin) indicates the best environmental benefit andFmincan be obtained by numerical curve fitting. A case study of a diesel engine is conducted with the approach and result shows thatFminis achieved when the engine is remanufactured after driving it for 3.315×105kms.