Abstract—In the near future, companies will be increasingly forced to shift their activities along a new road in order to decrease the harmful effects of their design, production and after-life on our environment. Products must meet environmental standards to not only prevent penalties but to consider the sustainability for future generations. However, the most important factor that companies will face is selecting a reasonable strategy to maximize their profit. Thus, companies need to have precise forecast from their profit after design stage through Trade-off analysis. This paper is an attempt to introduce a mathematical model that considers effective factors that impact the total profit when products are designed for resource and energy efficiency or recyclability. The modification is according to different strategies based on a Cost-Volume-Profit model. Here, the cost structure consists of Recycling cost, Development cost, Ramp-up cost, Production cost, and Pollution cost. Also, the model shows the effect of implementation of design for recyclable on revenue structure through revenue of used parts and revenue of recycled materials. A numerical example is used to evaluate the proposed model. Results show that fulfillment of Green Product Development not only can reduce the environmental impact of products but also it will increase profit of company in long term. Keywords—Green Product, Design for Environment, C-V-P Model, Trade-off analysis. I. INTRODUCTION INCE 2008, the number of customers that prefer to purchase a ‘green’ or environmentally friendly product instead of a comparably priced ordinary product obviously has boosted [1]. In order to reduce the environmental impact of human activities and improve the knowledge of their effects on human health and ecosystems, many firms adopt sustainable practices in their product designs and production processes. At the same time, many laws and legislations have been established by international organizations and governments to protect the environment against both global and local pollution. Regarding these concerns, manufacturing enterprises have to modify their business or production process in the direction of environmental policies, inevitably. So, new goals have to be considered by companies in order to reduce or eliminate current waste, air pollution, and energy M. R. Gholizadeh is with the Mechanical and Industrial Engineering Department, Concordia University, Montreal, QC H3G 1M8 Canada (phone: (438) 935-7392; e-mail: m_gholiz@encs.concordia.ca). N. Bhuiyan is with the Mechanical and Industrial Engineering Department, Concordia University, Montreal, QC H3G 1M8 Canada (phone: (514) 848- 2424 extension 3101; fax: (514) 848-3175; e-mail: nadia.bhuiyan@concordia.ca). M. Salari is with the Mechanical and Industrial Engineering Department, Concordia University, Montreal, QC H3G 1M8 Canada (e-mail: m_salar@encs.concordia.ca). consumption throughout their products’ life cycle. More than 80 percent of all product–related environmental impacts are determined during the design phase of a product [2], [3]. During the design process, in order to reduce the environmental impact, different goals can be defined by a company, as for example: reducing energy consumption and choosing the right materials, both of which can cause critical environmental problems [2]. That’s why many companies need to redesign their current products in order to reach the environmental protection goals. The effects of product development and manufacture on pollution emission are recent threats that push firms to move towards producing new generations of products, i.e. green products. Many studies have been performed on various aspects of green products and green production [4]-[8].However few of them investigated the effects of going green on a company’s profit [9]-[11] while the financial effect of green products in the future is a main concern of managers in charge of new product development projects. In this research we focus on green products which are designed to minimize the environmental impact during its life-cycle. Companies can redesign their products for the environment based on three main strategies [3]: 1. Resource and emission efficiency and energy saving; 2. Recyclability, disassembly, and environmentally friendly disposal; 3. Reducing products packaging. The implementation of these strategies needs different facilities that not only affect production factors but also have different product development processes with dissimilar costs for the company. Indeed, the conditions under which green products are developed and manufactured can be significantly different from traditional methods since one of the main goals becomes the minimization of environmental impact [2]. On the other hand, the acceptability of a design and compliance with environment of this new product, as with other products, has to be assessed based on different verification methods whether through physical tests or numerical calculations. These methods have three main purposes: screening, performance assessment, and trade-off analysis. This paper is focused on the trade-off analysis of green products. “Trade-off analysis methods are used to compare the expected cost and performance of several alternative design approaches.” [12] The main objective is designing for the environment. Consequently, we need to consider other parameters related to energy consumption, and recycling activities as part of cash flows in the product development project. So, recycling cost M. R. Gholizadeh, N. Bhuiyan, M. Salari Developing a Mathematical Model for Trade-off Analysis of New Green Products S World Academy of Science, Engineering and Technology International Journal of Industrial and Manufacturing Engineering Vol:8, No:6, 2014 1860 International Scholarly and Scientific Research & Innovation 8(6) 2014 scholar.waset.org/1307-6892/9998607 International Science Index, Industrial and Manufacturing Engineering Vol:8, No:6, 2014 waset.org/Publication/9998607