The Study Of The Optimization Of End-of-life Vehicles Dismantling Based On Recycling Profit Model

With fast economic development and rapidly growing car ownership,it's estimated that huge amount of vehicles would get retired.One the one hand,these end-of-life vehicles(ELVs)are resource intensive products with high added value,on the other hand,they are enormous threat to the environment.On the national twice conventions,the professor Li Keqiang put forward “Made in China 2015” plan in March 2015,which enforces products life cycle green management,emphasizes improving resources comprehensive recycling rate,then achieves efficient,low carbon,clean,recycling and intensive development of the manufacturing industry.Constrained by the laws,technology and company itself,ELVs recycling concentrated on metal recycling in our country currently.ELVs components didn't recycled properly,which may destruct the added value in these components and cause the waste of resources.How to recycle these ELVs efficiently become the problem to be solved urgently.Based on products life cycle and the rules of circular economy,this study emphasized the development pattern of “from cradle to cradle” and divided ELVs recycling into reuse route,remanufacture route,recycling route and recovery route according to the use of disassembled parts.This study introduced various processes of ELVs recycling,including assessment of ELVs,ELVs reception,environmental pretreatment,other dismantling processes except environmental pretreatment and disassembled parts recycling.Then this study built ELVs recycling model according to ELVs recycling route and built ELVs recycling profit model combining direct cost,indirect cost and sales income.This study took the example of A company to analyze ELVs dismantling profit connecting ELVs recycling profit model established previously.According to the demand of research,this study divided ELVs dismantling into six components as environmental pretreatment,five supervised assemblies,exterior & exterior components,chassis,products under the hood,wires & pipes,grouped them into five dismantling scenarios,and analyzed direct cost,indirect cost,sales income and final profit separately for different scenarios.This study found that the sales income is much higher than labor cost when dismantling interior & exterior components and products under the hood.With the increase of the dismantling depth,ELVs dismantling total cost would increase and the sales income would increase.However,ELVs dismantling profit was not positive to the ELVs dismantling depth.The profit depended on the sales and cost of dismantling such components.The dismantling depth of scenario 3 is much deeper than scenario 2,but its profit is half of scenario 2.In five scenarios,A company acquired highest profit in scenario 5 and lost money in scenario 1.It's better for the company to choose reuse route and remanufacture route than recycling route and recovery route.The profit of the company would increase greatly only choosing the components that the added value is much higher than dismantling cost.The profit of scenario 5 is little higher than scenario 4,so the dismantling company could choose any scenario.But the deeper the ELVs dismantling,the less the ELVs dismantling residues.The dismantling residues in scenario is only 1.6kg compared with scenario 4,the recovery rate is much higher than the 95% target in ELVs recycling policy.then from the perspective of environment,the dismantling scenario 5 is encouraged on the condition of almost the same profit.Finally,this study had profit sensitivity analysis to different elements as acquisition cost,labor cost,indirect cost,secondhand components sales price,material scales price etc.observing the change of ELVs recycling profit when these elements increased or decreased 10%.Through analysis,this study found: Profit in scenario 3 is sensitive to all elements.the highest profit in scenario 5 is the most sensitive to the sales price of second parts and labor cost but not sensitive to acquisition cost and material sales price.The lowest profit in scenario 1 is sensitive to indirect cost and material price but not sensitive to labor cost and secondhand components price.Different ELVs dismantling company should be sure of current dismantling scenarios,found the sensitive element influencing profit,and then adjust the dismantling emphasis to make sure its own profit based on estimated future change of different elements.For the new ELVs recycling law promoted by the legal department of the State Council in September 2016,this study simulated future profit of five scenarios after implementing the new ELVs recycling law.The profit of ELVs dismantling company would rise greatly after implementing new ELVs recycling law in the future.When the sale price of five supervised components is higher than 1.35 times as much as scraped iron and steel,all dismantling scenario would be profitable.The innovation of this paper is mainly in: This study took the example of specific enterprise,built different ELVs dismantling scenarios for different dismantling depth,and compared recycling profit in different dismantling scenario,which may help the company analyze current problem and found the optimization way in the future.According to general research ideas from finding problems,analyzing problems then to solving problems,this article is arranged in five chapters and every chapters are as follows: The first chapter is introduction.Introduce existed problems from domestic ELVs recycling condition,the significance of the study,current domestic and foreign research situation and the main structure and content of this article.The second chapter is theoretical basis.Mainly elaborate automotive life cycle assessment and 3R principle of circular economy,then introduce the construction,definition,recycling route and recycling index of ELVs.The third chapter introduces the processes of ELVs recycling,then builds ELVs recycling model and ELVs recycling profit model based on the processes.The fifth chapter is the case analysis.Take A company as example to have analysis in different scenarios connecting recycling profit model in chapter 4 and then find the optimization of ELVs recycling route.Having sensitivity analysis and future scenario analysis to help the company make adjustment in advance to ensure its own profit according to estimated future changes.