Leasing currently plays an important role for the global economy. The equipment leasing earning acquired through leasing rather than cash or credit, has reached a dominant level. With this regards, this paper represents a basic mixed-integer non-linear programming model. The study deliberates a firm that leases new products and remanufactured leased merchandises. The proposed study considers the end of lease contract, which contains several options: Return the leased product, return the used product and purchase other remanufactured product and buying the leased product. The primary objective is to maximize the discrepancy between the revenue and the costs of a firm, which leases new products as well as selling remanufactured ones. The product deteriorates with time and the difference between a new and used good is obvious. The product must undergo a remanufacturing procedure before being sold as a remanufactured product.
Extension of product’s useful life through product recovery options can help to reduce the consumption of natural resource and environmental pollution. Remanufacturing operation is considered as the most suitable product recovery option for automotive parts. The objective of this paper is to identify the barriers and the critical success factors in automotive engine remanufacturing. A case study is carried out in an automotive engine remanufacturing plant, situated in the south-western part of India. In this case study, the strategic, tactical and operational characteristics of the remanufacturing process are explored, what are the barriers they have faced while remanufacturing and to overcome those barriers, what strategies they have adopted are also analyzed. A fuzzy technique for order performance by similarity to ideal solutions (TOPSIS) is used to identify the critical success factor to overcome the roadblocks of remanufacturing. As this study is directed by the experts’ opinion from the remanufacturing plant which proves its practical implication. This case study is also useful for the other OEM remanufacturers in India.