An Input‐Output Model of Extended Producer Responsibility

Under an extended producer responsibility (EPR) system, when a producer delivers a product to the market it must also pay a takeback fee, which is used to cover the costs of end‐of‐life disposal. EPR systems are currently used in Europe and beyond to manage a variety of products, including packaging and used tires. In this article we develop an input‐output (IO) model that is able to assess the impacts of an EPR system, and is based on the waste IO (WIO) model. The WIO model is itself a hybrid‐unit model extension of the Leontief model that is able to capture the substitution effect between recycled/recovered material/energy from waste treatment and their non‐waste cognates. The resulting EPRIO model, besides the conventional direct and indirect effects of the Leontief model and the substitution effects of the WIO model, is able to capture the opportunity costs of financing the EPR system, and additionally requires the specification of an alternative waste management policy, with its own opportunity costs. The impact of an EPR policy is thus the difference between the impacts of the reference EPR and the alternative waste treament policies. The resulting model is illustrated with a simple example of a used tire management EPR system.     

Operational flexibility quantification in a make-to-order assembly system

Manufacturing flexibility is becoming a fundamental production objective, along with cost, quality, and delivery time. Current production systems face quick changes in market conditions and they need to adapt in this environment. The supply chain and industrial globalization give an important role for assembly systems. Placed at the end of the value chain, assembly systems must face those quick changes successfully to reach the expected performance. The key performance indicators are normally based on cost, quality, and delivery time objectives. Reducing costs and improving quality are almost universal goals. Delivery time is typically determined by customer demand in the supply chain, planning from make-to-stock to make-to-order, and aspiring to reach a just-in-time manufacturing system. In this context, flexibility could be the differential advantage to tackle uncertainty. Closely related to the rest of production objectives and the overall performance of the system, flexibility must be integrated in the system for successful decision-making in operations. This work presents this approach of flexibility. A brief review of flexibility concepts and measurements in the literature precedes an introduction to flexibility, defined based on the function of utility. This function represents the expectations of system performance. This approach allows the formulation of the taxonomy of operational flexibility in agreement with the classical types identified in former works. Next, an integer model is programmed to simulate the basic behavior of task planning in a make-to-order assembly system. This first application illustrates flexibility quantification based on utility evolution. The use of common industrial parameters to quantify operational flexibility will finally facilitate an integrated interpretation of system performance trends.     

From Legal Transplants to Sustainable Transition

Extended producer responsibility (EPR), which assigns significant responsibility to producers to take back their end‐of‐life products to create incentives for redesign of products with lower life cycle environmental impacts, has come to a crossroad facing a trade‐off between the original innovation‐oriented regime design and the cost‐efficiency challenges in practice. This is particularly true in its implementation in non‐Organization for Economic Co‐operation and Development (OECD) countries as they are trying to transplant the “best practices” from OECD countries, for there is increasing skepticism as to whether EPR is suitable for developing countries at all. As an important producer of electronic products and destination of electronic waste (e‐waste) flows in the world, China has been expected to play a vital role in the evolution of global governance based on the idea of EPR, either to create new ways for producers to perform their end‐of‐life strategies, or to reshape the mode of production and consumption with its fast‐growing market. However, the establishment of EPR in China has been long and full of difficulties. This article reviews the status and trends in the establishment of an EPR system for waste electrical and electronic equipment (WEEE) management in China. We use the framework of a multilevel perspective of transition theory in our analysis to characterize the complex interactions among various agents in the evolution of the Chinese system from initial innovation‐oriented design to the current efficiency‐oriented version. An ongoing research framework for evaluation of the EPR program in China is outlined as the research agenda in coming years.     

Effect of reconfiguration costs on planning for capacity scalability in reconfigurable manufacturing systems

In a globally competitive market for products, manufacturers are faced with an increasing need to improve their flexibility, reliability, and responsiveness to meet the demands of their customers. Reconfigurable manufacturing systems (RMS) have become an important manufacturing paradigm, because they broadly encompass the ability to react efficiently to this environment by providing the exact capacity and functionality needed when needed. This paper studies how such new systems can manage their capacity scalability planning in a cost effective manner. An approach for modeling capacity scalability planning is proposed. The development of the model is based on set theory and the regeneration point theorem which is mapped to the reconfigurable manufacturing paradigm as the capacity scalability points of that system. The cost function of the model incorporates both the physical capacity cost based on capacity size and costs associated with the reconfiguration process which referred to as the scalability penalty cost and scalability effort cost. A dynamic programming (DP) approach is manipulated for the development of optimal capacity scalability plans. The effect of the reconfiguration costs on the capacity scalability planning horizon and overall cost is investigated. The results showed the relation between deciding on the optimal capacity scalability planning horizon and the different reconfiguration costs. Results also highlighted the fact that decreasing costs of reconfiguration will lead to cost effective implementation of reconfigurable manufacturing systems.     

Extended Producer Responsibility in the United States

Extended producer responsibility (EPR) is a policy approach that requires manufacturers to finance the costs of recycling or safely disposing of products consumers no longer want. This article describes the evolution of EPR policies in the United States, focusing on the role of states as policy actors. For their part, federal lawmakers have not embraced EPR policies except to remove some barriers to state‐level initiatives. In the two‐decade period from 1991 to 2011, U.S. states enacted more than 70 EPR laws. In addition, manufacturers have implemented voluntary programs to collect and recycle products, but those efforts have proven largely ineffective in capturing significant quantities of waste products. With the help of new coalitions of diverse interest groups, recently states have renewed efforts to establish effective EPR programs, enacting 40 laws in the period 2008–2011. Several state initiatives suggest a more promising future for EPR.     

Implementing Extended Producer Responsibility Legislation

The goal of this article is to contribute to the understanding of how the multiple, and sometimes conflicting, stakeholder perspectives and prevailing conditions (economic, geographic, etc.) in the implementation locality shape extended producer responsibility (EPR) “on the ground.” We provide an in‐depth examination of the implementation dimension of EPR in a specific case study by examining concrete activities at the operational front of the collection and recycling system, and probing the varying stakeholder preferences that have driven a specific system to its status quo. To this end, we conduct a detailed case study of the Washington State EPR implementation for electronic waste. We provide an overview of various stakeholder perspectives and their implications for the attainment of EPR policy objectives in practice. These findings shed light on the intrinsic complexity of EPR implementation. We conclude with recommendations on how to achieve effective and efficient EPR implementation, including improving design incentives, incorporating reuse and refurbishing, expanding product scope, managing downstream material flows, and promoting operational efficiency via fair cost allocation design.     

Original Equipment Manufacturers’ Participation in Take‐Back Initiatives in Brazil

Lax legislation and increasing demand for electronics are driving relentless growth in electronic waste (e‐waste) in the developing world. To reduce the damage caused by e‐waste and recover value from end‐of‐life (EoL) electronics, original equipment manufacturers (OEMs) have created, over the past decades, programs to divert e‐waste from landfills to recycling and reuse. Although the subject of intense debate, little is known about such initiatives in terms of levels of participation by OEMs or the extent to which they have succeeded in reducing e‐waste in developing economies. To broaden our understanding of these issues, we investigate take‐back initiatives in the thriving market of personal computers (i.e., desktop and laptop computers) in Brazil. Using a multimethod approach (electronic archival data collection and semistructured interviews with manufacturers), we find evidence that large multinational manufacturers are at the forefront of take‐back programs. However, these initiatives in many ways lag behind those implemented in the United States, a more developed market as far as product take‐back is concerned. We find the main reasons for the low levels of participation by OEMs in take‐back programs to be high collection costs, low residual values, and lax, unclear, and conflicting legislation. Moreover, we propose new avenues of research, in light of our scant knowledge of country‐specific, company‐specific, and product‐specific determinants that moderate participation.     

The integration of biodiversity and climate change: A contextual assessment of the carbon farming initiative

Summary The Carbon Farming Initiative (CFI) allows the creation of tradable Australian Carbon Credit Units (ACCUs) derived from across the ecosystem sector via project‐level baseline and credit activities: it is the first national offset scheme in the world to broadly include farming and forestry projects. Because these activities have the potential to produce both biodiversity and climate change benefits, a crucial outcome is for widespread uptake of the policy. However, the design, complexity and cost of the CFI project development process, and low prices as a result of ACCUs trading in the voluntary market, will all likely militate against this. This article shows how international politics and policy surrounding the Kyoto Protocol have influenced the design of the CFI, with its potential to proliferate complex and narrow methodologies and counter‐productive approaches to integrity standards such as permanence. The article shows that despite the pressing need to integrate biodiversity and climate change considerations as equally important challenges, their global integration remains poorly articulated. Biodiversity considerations are also not integrated into the CFI but, rather, are dealt with indirectly through safeguard measures that avoid perverse incentives and unintended harm, and as an optional co‐benefit via the development of an index. This article suggests that we need to move past the shackles of Kyoto towards streamlined and standardized approaches such as risk‐based assessments and the use of regional baselines. Using regionally specific baselines such as for avoided deforestation would allow landholders to opt‐in to regional‐scale mitigation opportunities. Activities that Australia accounts for, such as reforestation and deforestation, should also be able to opt‐in for coverage under the Clean Energy Act (and out of the voluntary carbon market) to obtain a secure price.     

Business‐to‐Business Information Technology User Practices at End of Life in the United Kingdom,Germany, and France

Business‐to‐business (B2B) electronics account for a significant volume of the electrical and electronic equipment (EEE) put on the market. Very little B2B waste electrical and electronic equipment (WEEE) is reported as collected in the European Union (EU) in compliance with the WEEE Directive, which uses the policy principle of extended producer responsibility (EPR) to ensure that WEEE is managed correctly. This presents a barrier to parties looking for access to the waste. Company practice dictates the channels into which B2B WEEE flows following primary use. This article presents a study that engaged with company actors directly to get a better understanding of business information technology (IT) EEE asset management. Data were collected to determine the barriers current practice could present to the collection of B2B IT EEE at end of life and the implications of these for the development of policies and strategies for EPR. A questionnaire was developed and data were gathered from organizations in three EU countries—the United Kingdom, Germany, and France—stratified by size. Some notable findings were that there are several routes by which end‐of‐life B2B WEEE can flow. The recycling and refurbishment of B2B IT units at end of use was shown to be commonplace, but it is likely that these units enter streams where they are not reported. The actors disposing of their units did not have information on the management or disposition of these streams. It is concluded that to achieve the goals of EPR for B2B IT WEEE, the networks and the operational practices of these streams need to be better understood when developing strategies and policies.     

Outcomes from engaging urban community groups in publicly funded vegetation restoration

Community‐based ecological restoration (CBR) has been encouraged by government funding schemes worldwide to help reverse ecosystem degradation, although many observers have questioned their longer‐term outcomes. We investigated the ecological and social outcomes of community‐based revegetation projects in an urban context, using the case study of all CBR groups located within 25 km of the Brisbane CBD which had been funded during 1997–2008 by the Australian Government's Natural Heritage Trust program to undertake revegetation works and which were also available for interview (N = 9 groups). First we reviewed the funding allocation within the region. Second, we conducted rapid on‐ground assessments of vegetation outcomes at 10 project sites several years after works were completed, which showed that the detectable area of established revegetation averaged 75% of the area planned, and the achieved revegetation areas varied greatly, both in total and in relation to cost. Third, we undertook thematic analysis of semi‐structured interviews with key group members, revealing that groups viewed the NHT scheme's short‐term funding and lack of administrative flexibility as being largely incompatible with both quantitative monitoring (which groups did not prioritise) and longer‐term maintenance of sites for successful vegetation establishment. Interactions with local governments were considered important to success, but internally‐conflicting policies of local and state governments, together with unforeseen site disturbances, acted to limit the achievement of projects' revegetation goals. Volunteer involvement and motivation were an important part of groups' activities. Overall, these CBR projects achieved modest short term environmental benefits together with a range of social benefits. There is a need for new CBR models aimed at maximising both environmental and social outcomes.     

End‐of‐life product management as a resilience driver for developing countries: A policy experiment for used tires in Ecuador

Over the last decades, a number of new environmental policies have been designed to improve waste management. Among them, extended producer responsibility (EPR) has introduced a mechanism to shift the environmental and financial burden of end‐of‐life products from public management to producers. Recently, EPR has been adopted by a growing number of developing countries, but this policy often struggles in being effectively implemented in such contexts, missing the opportunity of using waste management as a sustainability driver. By discussing the EPR for end‐of‐life tires (ELTs) in Ecuador, this paper proposes a different approach in designing and implementing EPR schemes in developing countries: it recommends consideration of social sustainability, rather than merely copying foreign management frameworks. To address this point, two case studies on socially directed ELT applications were designed and carried out. The case studies aimed at improving resilience of vulnerable populations to natural disasters by increasing the resistance of housing and settlements against catastrophic events using civil engineering applications. The analysis of the case studies’ outcomes brings to light possible policy adjustments, in which social sustainability goals are taken into account within the national EPR scheme. The Ecuadorian case also highlights the benefit of employing an adaptive governance approach when dealing with challenging urban management topics, such as informality (a widespread phenomenon in developing countries) and resilience.     

Implementing Individual Producer Responsibility for Waste Electrical and Electronic Equipment through Improved Financing

Under the European Union (EU) Waste Electrical and Electronics Equipment (WEEE) Directive, producers are responsible for financing the recycling of their products at end of life. A key intention of such extended producer responsibility (EPR) legislation is to provide economic incentives for producers to develop products that are easier to treat and recycle at end of life. Recent research has shown, however, that the implementation of EPR for WEEE has so far failed in this respect. Current WEEE systems calculate their prices according to simple mass‐based allocation of costs to producers, based on broad collection categories containing a mixture of different product types and brands. This article outlines two alternative approaches, which instead calculate charges for products sold by producers by classifying them according to their eventual end‐of‐life treatment requirements and cost. Worked examples indicate that these methods provide both effective and efficient frameworks for financing WEEE, potentially delivering financial incentives to producers substantial enough to affect their potential profitability and, as a likely consequence, the decisions relating to the design of their products. In particular they fulfill three important criteria required by the WEEE Directive: they can financially reward improved design, allocate costs of historic waste proportionately (on the basis of tonnes of new products sold), and provide sufficient financial guarantees against future waste costs and liabilities. They are also relatively practical for implementation because they are based solely on cost allocation and financing. Further research and investigation would be worthwhile to test and verify this approach using real‐world data and under various scenarios.     

Assisted Reproduction and Distributive Justice

The Canadian province of Quebec recently amended its Health Insurance Act to cover the costs of In Vitro Fertilization (IVF). The province of Ontario recently de‐insured IVF. Both provinces cited cost‐effectiveness as their grounds, but the question as to whether a public health insurance system ought to cover IVF raises the deeper question of how we should understand reproduction at the social level, and whether its costs should be a matter of individual or collective responsibility. In this article I examine three strategies for justifying collective provisions in a liberal society and assess whether public reproductive assistance can be defended on any of these accounts. I begin by considering, and rejecting, rights‐based and needs‐based approaches. I go on to argue that instead we ought to address assisted reproduction from the perspective of the contractarian insurance‐based model for public health coverage, according to which we select items for inclusion based on their unpredictability in nature and cost. I argue that infertility qualifies as an unpredictable incident against which rational agents would choose to insure under ideal conditions and that assisted reproduction is thereby a matter of collective responsibility, but only in cases of medical necessity or inability to pay. The policy I endorse by appeal to this approach is a means‐tested system of coverage resembling neither Ontario nor Quebec's, and I conclude that it constitutes a promising alternative worthy of serious consideration by bioethicists, political philosophers, and policy‐makers alike.     

A framework for the identification of promising bio‐based chemicals

Recent progress in metabolic engineering and synthetic biology enables the use of microorganisms for the production of chemicals—“bio‐based chemicals.” However, it is still unclear which chemicals have the highest economic prospect. To this end, we develop a framework for the identification of such promising ones. Specifically, we first develop a genome‐scale constraint‐based metabolic modeling approach, which is used to identify a candidate pool of 209 chemicals (together with the estimated yield, productivity, and residence time for each) from the intersection of the high‐production‐volume chemicals and the KEGG and MetaCyc databases. Second, we design three screening criteria based on a chemical’s profit margin, market volume, and market size. The total process cost, including the downstream separation cost, is systematically incorporated into the evaluation. Third, given the three aforementioned criteria, we identify 32 products as economically promising if the maximum yields can be achieved, and 22 products if the maximum productivities can be achieved. The breakeven titer that renders zero profit margin for each product is also presented. Comparisons between extracellular and intracellular production, as well as Escherichia coli and Saccharomyces cerevisiae systems are also discussed. The proposed framework provides important guidance for future studies in the production of bio‐based chemicals. It is also flexible in that the databases, yield estimations, and criteria can be modified to customize the screening.     

From Cradle to Grave: Extended Producer Responsibility for Household Hazardous Wastes in British Columbia

Household hazardous wastes (HHWs), the discarded pesticides, solvents, paints, lubricating oil, and similar products common to residences throughout the industrial world, create problems for governments charged with managing solid waste. When disposed of improperly in landfills or incinerators or if dumped illegally, HHW may contribute to soil and water contamination. A most common management tool for HHW is a special collection effort that segregates HHW from normal trash and disposes of it in an approved manner, all at a higher cost to the governmental jurisdiction. The Canadian province of British Columbia (BC) has undertaken a different approach, based on the use of extended producer responsibility (EPR). BC's efforts began in 1992 with adoption of a regulation on used lubricating oil (lube oil). More than 40 million liters (L) of used lube oil have been collected annually through the EPR system established under this regulation. A regulation establishing producer responsibility for postconsumer paints followed in 1994. BC enacted an additional regulation establishing EPR in 1997 for solvents/flammable liquids, domestic pesticides, gasoline, and pharmaceuticals. As a result of the application of EPR to HHW, local government costs for managing HHW and the amount of HHW identified in municipal waste have declined. Although the regulations appear to have mixed success in prompting consumers to avoid products that result in HHW, there are indications that they may be more effective than conventional management efforts. Based on BC's experience with EPR, key factors for successful implementation include maintaining flexibility in program design, creating viable funding alternatives, aggressive enforcement to provide a level playing field, and adopting policies that maximize diversion of HHW from landfills, while minimizing waste generation, setting targets for reuse and recycling, promoting consumer awareness and convenience, involving local government jurisdictions, and monitoring outcomes.     

River Enhancement in the Upper Mississippi River Basin: Approaches Based on River Uses, Alterations, and Management Agencies

The Upper Mississippi River is characterized by a series of locks and dams, shallow impoundments, and thousands of river channelization structures that facilitate commercial navigation between Minneapolis, Minnesota, and Cairo, Illinois. Agriculture and urban development over the past 200 years have degraded water quality and increased the rate of sediment and nutrient delivery to surface waters. River enhancement has become an important management tool employed to address causes and effects of surface water degradation and river modification in the Upper Mississippi River Basin. We report information on individual river enhancement projects and contrast project densities, goals, activities, monitoring, and cost between commercially non‐navigated and navigated rivers (Non‐navigated and Navigated Rivers, respectively). The total number of river enhancement projects collected during this effort was 62,108. Cost of all projects reporting spending between 1972 and 2006 was about US$1.6 billion. Water quality management was the most cited project goal within the basin. Other important goals in Navigated Rivers included in‐stream habitat improvement and flow modification. Most projects collected for Non‐navigated Rivers and their watersheds originated from the U.S. Department of Agriculture (USDA). The U.S. Army Corps of Engineers and the USDA were important sources for projects in Navigated Rivers. Collaborative efforts between agencies that implement projects in Non‐navigated and Navigated Rivers may be needed to more effectively address river impairment. However, the current state of data sources tracking river enhancement projects deters efficient and broad‐scale integration.     

Diminishing Returns from Higher Density Restoration Seedings Suggest Trade‐offs in Pollinator Seed Mixes

Native forbs have become a more central component of restoration programs, especially because of their role in supporting crop pollinators. This study evaluates the success of different native forb mixes and seeding rates using shared goals of restoration practitioners and agroecologists, namely percent native species cover, floral resources, native diversity, and cost‐effectiveness. At 6 sites with hedgerows adjacent to agricultural lands in California's Central Valley, we planted 3 native forb seed mixes at 3 seeding rates and monitored germination, percent cover, and floral resources for 2 to 3 years. We also evaluated the cost of the mixes based on seeding rates and original seed prices. More than mix type, relative seeding rate strongly affected germination, cover, and floral resource success. The relative benefits of seeding with more species diminished at higher seeding rates, especially when cost was considered. Cover increased significantly over the years but diversity declined sharply after the first year. Increased cover of target species was mainly due to the effect of 1 dominant species Grindelia camporum, common gumplant. We summarize data from a similar forb restoration study showing that the species that dominated in our mix‐and‐rate experimental sites also attracted the greatest diversity and abundance of pollinators. These findings highlight trade‐offs and balance‐points within restoration and pollination services goals. We offer suggestions on how to weigh those trade‐offs, given particular priorities and how native forb plantings can support combined goals of pollination services and restoration.     

Prospective Environmental Analyses of Emerging Technology: A Critique,a Proposed Methodology,and a Case Study on Incremental Sheet Forming

Prospective environmental assessment of emerging technology is necessary in order to inform designers of beneficial changes early in a technology's development, and policy makers looking to fund projects and nudge manufacturers toward the most sustainable application of a technology. Existing analyses often have shortcomings such as failing to consider the environmental impacts in all stages of a product's life cycle; implicitly assuming that the emerging technology will be cost‐effective wherever it is technically viable; and assuming optimistic application scenarios that discontinue long‐established trends in human behavior. In this article, we propose a new approach, complementary to the prospective and anticipatory life cycle assessment literature, addressing the above concerns and attempting to make sense of the large uncertainties inherent in such analyses by using distributions to model all the inputs. The paper focuses on emerging manufacturing technologies, such as incremental sheet forming (ISF), but the issues examined are also applicable to new end‐use products, such as autonomous vehicles. This paper makes use of approaches (such as Bass modeling and product cannibalization considerations) familiar to those in the business community who anticipate market diffusion of a new technology and the effect on existing technology sales. The proposed methodology is demonstrated by estimating the potential environmental impacts in the U.S. car industry by 2030 of an emerging double‐sided ISF process. Energy and cost models of ISF and drawing are used to estimate potential mean savings of around 100 TJ_primary and 60 million U.S. dollars per year by 2030.     

Core concepts of spatial prioritisation in systematic conservation planning

Systematic conservation planning (SCP) is a field of conservation biology concerned with delivering on‐the‐ground actions that achieve conservation goals. It describes a set of operational models that cover both design and implementation of conservation, with a strong focus on mobilising the collective action typically required to implement conservation. SCP, as it was originally described, was composed of six different stages: collection of data, identification of conservation goals, evaluation of the existing protected area network, design of expansions, implementation of conservation action, and long‐term maintenance of biodiversity in the network. Since then, the operational model has been expanded into several different variants. Conservation actions applied inside SCP include establishment and expansion of reserve networks and allocation of habitat restoration and management. Within the broader context of SCP, there is a fundamental biogeographic‐economic analysis frequently called spatial conservation prioritisation or conservation assessment, which is used for identifying where important areas for biodiversity are and how conservation goals might be achieved efficiently. Here, we review the usage and meaning of the 12 biogeographic‐economic core concepts of SCP: adequacy, complementarity, comprehensiveness, effectiveness, efficiency, flexibility, irreplaceability, replacement cost, representation, representativeness, threat, and vulnerability. Some of the concepts have clear definitions whereas others may have alternative and possibly conflicting definitions. With a comprehensive literature review literature, we elucidate the historical backgrounds of these concepts, the first definitions and usages, alternative later definitions, key applications, and prior reviews. This review reduces linguistic uncertainty in the application of SCP. Since SCP is a global activity with a multitude of different stakeholders involved, it is vital that those involved can speak the same language. Through these concepts, this review serves as a source of information about the historical development of SCP. It provides a comprehensive review for anyone wishing to understand the key concepts of spatial prioritisation within SCP.     

Aligning demand and supply flexibility in custom product co-design

Flexibility of supply and demand is essential for successful implementation of a mass customization strategy that delivers sustained competitive advantage. Supply flexibility, i.e., a choice of alternative products designed to perform the same basic function, is made possible by the range of capabilities available in flexible and agile manufacturing systems and in supply chains. Demand flexibility is derived from the degree to which a customer is willing to compromise on product features or performance levels in order to meet budgetary (reflected in price) or schedule (reflected in delivery) constraints. Flexibility of both supply and demand can have significant strategic and financial value if they are properly aligned. However, customers are mostly unaware of mapping of demand flexibility on to supply flexibility and its impact on production cost and time. Recent advances in information technology have made it possible to co-design a product that involves customer on one end and the manufacturer on the other. This creates an aura and an opportunity where a middle ground between the supply and demand flexibility can be explored and a “deal” can be struck where both parties settle for a product that is beneficial to both through a negotiated settlement. In this paper, we develop a framework for such negotiations. The customer requirements are treated as a range of negotiable options instead of a set of fixed inputs. Demand and supply for customization is then matched by aligning the flexibility of manufacturing systems with customers’ requirement options. Based on this framework, a negotiation scheme is developed to assist customers and manufacturers in exploring and utilizing demand and supply flexibility information in co-design. The negotiation scheme is formulated using goal programming. Finally, an interactive problem-solving procedure is developed and implemented with an illustrative example.