In this thesis a recycling-reuse model is developed and analyzed. Discarded 2L plastic PET (polyethylene terephthalate) bottles are collected from the market. The non-contaminated PET bottles are either remanufactured or used as regrind mixed with virgin PET to produce new bottles to satisfy varying demand. Contaminated bottles are sold to industries using low grade plastic and only badly contaminated bottles go to landfill. Cost of land use and associated environmental damage is calculated as a present worth and charged to the manufacture. Analyses conducted on this model found that the amount of bottles collected had the largest influence on the outcome of the total system unit time cost. Alternative materials to PET that degrade faster are surveyed and used to demonstrate significant reduction in the cost of landfill disposal. Analysis using a minimal market price for remanufactured and newly produced bottles resulted in profit.