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The present study develops a method for the sake of evaluating Disposal and Recycle (D&R) cost in view of the increasing demand in aircraft retirement. Firstly, a process model is extracted. The subordinated cost elements are also identified. Next, the cost aggregations based on the D&R process steps are discussed. Moreover, it proposes an economic indicator to support the determination of the aircraft D&R strategies. The indicator is used to evaluate the economic performance and to facilitate the trade-off studies among different D&R scenarios. This analysis is demonstrated on two aircraft types with two scenarios. In addition, sensitivity analysis evaluating the impact of the salvage value, residual value, D&R cost, and the learning factor is performed. It is found that the engine D&R possesses more economic gains than that of the aircraft. The salvage value and residual value are the main factors which influence the D&R economic performance.
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