ABSTRACT

This chapter looks at the mould industry to illustrate the challenges of the emerging business model that can be found in many other industries as well. It presents a background and literature review about leasing, and examples of papers within the context of remanufacturing. The chapter introduces the problem and the model formulation, and outlines the implement environment. A growing number of advocates have claimed adopting leasing as a business model as being more ‘green'. The practice of leasing products, rather than selling them, is a strategy for increasing resource productivity by moving to a pattern of closed-loop material use by manufacturers. Several firms that are actively involved in remanufacturing recover their used products by leasing their new products. Product leasing results in the most predictable return stream and is a popular option for firms that also remanufacture. Leasing provides both a motive for product take-back and a structure to aid in the logistics involved with closed material loops.