This　study　investigates　product　design　and　its　impact　on　the　operations　of　a　two　echelon　closed-loop　supply　chain　(CLSC).　Research　findings　reveal　that　remanufacturing　does　not　necessarily　enhance　the　profitability　of　the　supplier　or　the　manufacturer,　but　adjusting　product-design　strategies　helps　to　curb　loss　if　profitability　suffers.　An　environmental　impact　analysis　identifies　an　interval　for　the　base　unit　remanufacturing　cost,　within　which　remanufacturing　is　beneficial.　We　then　obtain　the　condition　under　which　the　environmental　impact　can　be　mitigated　by　product　design.　These　results　shed　insights　for　supply　chain　managers　in　their　operational　decisions　and　policy-makers　in　properly　regulating　remanufacturing　activities.