A firm is considering three different product designs. Data concerning the design for disassembly for each of the designs are provided in the table below
Which design appears to be the best environmental design based on revenue retrieval opportunity?
Product Design Resale Revenue per Unit Recycling Revenue per Unit Processing Cost per Unit Disposal Cost per Unit
1 $100 $10 $40 $5
2 $80 $50 $20 $20
3 $200 $25 $130 $20
Revenue retrieval for Design 1 = $100 + $10 - $40 - $5 = $65
Revenue retrieval for Design 2 = $80 + $50 - $20 - $20 = $90
Revenue retrieval for Design 3 = $200 + $25 - $130 - $20 = $75
Thus, with the highest revenue retrieval opportunity, Design 2 appears best.
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