• Title/Summary/Keyword: Closed loop Supply Chain Management

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Dynamic System Modeling for Closed Loop Supply Chains System

  • Wadhwa, Subhash;Madaan, Jitendra
    • Industrial Engineering and Management Systems
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    • v.7 no.1
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    • pp.78-89
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    • 2008
  • The need for holistic modeling efforts for returns that capture the extended closed loop supply chain (CLSC) system at strategic as well as operational level has been clearly recognized by the industry and academia. Strategic decision-makers need comprehensive models that can guide them in efficient decision-making to increase the profitability of the entire forward and return chain. Therefore, determination of a near optimal design configuration, which includes the environmental, economical and technological capability factors, is important in strategic decision-making effort that affect the profitability of the closed loop supply chain. In this paper, we adopted an improved system dynamics methodology to tackle strategic issues that affect various performance measures, like market, time/cost, environment etc., for closed loop supply chains. After studying real life implementation issues in CLSC design, we presented guidelines for the PBM (Participative Business Modeling) methodology and presented its extension for the strategic dynamic system modeling of return chains. Finally, we demonstrated the measurement of operational performance by extending SD (system dynamic) application to closed loop supply chain management.

Analysis of the Closed-Loop Supply Chain Focusing on Power Batteries in China

  • Chen, Jinhui;Jin, Chan-Yong
    • Journal of information and communication convergence engineering
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    • v.19 no.2
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    • pp.84-92
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    • 2021
  • The research on waste power batteries in China in the past ten years reveals that the power battery recycling industry is enormous but marred with several challenges. A study of China's current power battery closed-loop supply chain revealed some issues in the power battery recycling industry, such as imperfect supply chain, small recycling scale, asymmetric information, and imperfect profit distribution mechanism. This paper uses the theory of corporate social responsibility and consumer choice to propose a closed-loop network of power batteries based on block chain technology and analyzes the existing closed-loop supply chain of power batteries. Consequently, this study provides a new idea for developing the power battery closed-loop supply chain by proposing the closed-loop network of power batteries based on blockchain technology.

A Location-Routing Problem for Logistics Network Integrating Forward and Reverse Flow (역물류를 고려한 통합물류망에서의 입지:경로문제)

  • Na, Ho-Young;Lee, Sang-Heon
    • IE interfaces
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    • v.22 no.2
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    • pp.153-164
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    • 2009
  • An effective management for reverse flows of products such as reuse, repair and disposal, has become an important issue for every aspect of business. In this paper, we study the Location-Routing Problem (LRP) in the multi-stage closed-loop supply chain network. The closed-loop supply chain in this study integrated both forward and reverse flows. In forward flow, a factory, Distribution Center (DC) and retailer are considered as usual. Additionally in reverse flow, we consider the Central Returns collection Center (CRC) and disposal facility. We propose a mixed integer programming model for the design of closed-loop supply chain integrating both forward and reverse flows. Since the LRP belongs to an NP-hard problem, we suggest a heuristic algorithm based on genetic algorithm. For some test problems, we found the optimal locations and routes by changing the numbers of retailers and facility candidates. Furthermore, we compare the efficiencies between open-loop and closed-loop supply chain networks. The results show that the closed-loop design is better than the open one in respect to the total routing distance and cost. This phenomenon enlarges the cut down effect on cost as an experimental space become larger.

Strategic Pricing Framework for Closed Loop Supply Chain with Remanufacturing Process using Nonlinear Fuzzy Function (재 제조 프로세스를 가진 순환 형 SCM에서의 비선형 퍼지 함수 기반 가격 정책 프레임웍)

  • Kim, Jinbae;Kim, Taesung;Lee, Hyunsoo
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.40 no.4
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    • pp.29-37
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    • 2017
  • This papers focuses on remanufacturing processes in a closed loop supply chain. The remanufacturing processes is considered as one of the effective strategies for enterprises' sustainability. For this reason, a lot of companies have attempted to apply remanufacturing related methods to their manufacturing processes. While many research studies focused on the return rate for remanufacturing parts as a control parameter, the relationship with demand certainties has been studied less comparatively. This paper considers a closed loop supply chain environment with remanufacturing processes, where highly fluctuating demands are embedded. While other research studies capture uncertainties using probability theories, highly fluctuating demands are modeled using a fuzzy logic based ambiguity based modeling framework. The previous studies on the remanufacturing have been limited in solving the actual supply chain management situation and issues by analyzing the various situations and variables constituting the supply chain model in a linear relationship. In order to overcome these limitations, this papers considers that the relationship between price and demand is nonlinear. In order to interpret the relationship between demand and price, a new price elasticity of demand is modeled using a fuzzy based nonlinear function and analyzed. This papers contributes to setup and to provide an effective price strategy reflecting highly demand uncertainties in the closed loop supply chain management with remanufacturing processes. Also, this papers present various procedures and analytical methods for constructing accurate parameter and membership functions that deal with extended uncertainty through fuzzy logic system based modeling rather than existing probability distribution based uncertainty modeling.

Closed-Loop Supply Chain Design of Power Battery using Blockchain

  • Chen, Jinhui;Jin, Chanyong
    • Proceedings of the Korean Institute of Information and Commucation Sciences Conference
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    • 2022.05a
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    • pp.680-682
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    • 2022
  • The closed-loop supply chain's central enterprises aim to maximize the revenue and reduce the reclaiming channel level to the greatest extent by using blockchain and modern management methods. The traditional recycling network has more links, and there is less communication between enterprises in each link. There is a particular "bullwhip effect" in the channel link, making it difficult for power battery manufacturers to respond to the dynamic market quickly. It is often challenging to obtain scaled waste power batteries, which aggravates how power battery raw materials are expensive and difficult to recycle. Therefore, the closed-loop supply chain design of power batteries adopting blockchain shall minimize channel links and reduce transaction levels to reduce costs.

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Risk assessment in international EV battery closed loop supply chain: developing a conceptual framework

  • Nataliia Grekova;Dong-WookKwak
    • Proceedings of the Korean Institute of Navigation and Port Research Conference
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    • 2022.06a
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    • pp.201-203
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    • 2022
  • Increasing global market of used electric vehicle (EV) battery encourages international firms to establish its subsidiary companies or business units specializing in battery recycling. Such kind of companies predominantly use closed loop supply chain (CLSC) for their operations of battery manufacturing and used battery recycling/reusing in global scale. However, EV battery recycling, as a relatively new industry, makes its global CLSC be exposed to various types of risks, which leads to inefficiency of supply processes and makes supply chains more complicated and vulnerable. Identifying, evaluating, and analyzing possible risks in CLSC has a great importance for optimization and increasing effectiveness for the global supply chain of used EV battery. Itwill assist to elaborate the efficient CLSC management and possible risk mitigation strategies to keep the global EV battery supply chain resilient and sustainable. This study aims to develop a conceptual framework for risk assessment in this new sector. Therefore, it will populate the framework with possible failure modes identified from various literature on EV battery recycling and closed loop supply chains so that future research can validate and utilize the conceptual framework.

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Optimization of green closed loop supply chain network considering recycling express box (재활용 익스프레스 박스를 고려한 친환경 폐쇄 루프 공급망 네트워크 최적화)

  • Zhang, Jun-Hao;Che, Jin-Yao
    • Journal of Digital Convergence
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    • v.20 no.5
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    • pp.211-220
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    • 2022
  • This paper proposes a green closed-loop supply chain network (GCSN) for optimizing closed-loop supply chains. The GCSN focuses on the application of the recycling express box in logistics circulation, accelerates the standardization of logistics operations and the use of express packaging in e-commerce companies, and promotes the reduction and greening of recycling express box in the e-commerce industry. The GCSN is represented as a mathematical formulation and implemented using LINGO. Greening, environmental protection, and wisdom are the general trends for promoting the growth of the e-commerce industry. Meanwhile, the price of raw materials has increased owing to a shortage of resources, which emphasizes the need for e-commerce enterprises to develop green packaging. Therefore, this study considers the shared circular packaging launched by e-commerce enterprises as the research object, and integrates the problem of facility positioning and path planning in the logistics system. The conclusion summarizes the significance of this study.

2-Stage Optimal Design and Analysis for Disassembly System with Environmental and Economic Parts Selection Using the Recyclability Evaluation Method

  • Igarashi, Kento;Yamada, Tetsuo;Inoue, Masato
    • Industrial Engineering and Management Systems
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    • v.13 no.1
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    • pp.52-66
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    • 2014
  • Promotion of a closed-loop supply chain requires disassembly systems that recycle end-of-life (EOL) assembled products. To operate the recycling disassembly system, parts selection is environmentally and economically carried out with non-destructive or destructive disassembly, and the recycling rate of the whole EOL product is determined. As the number of disassembled parts increases, the recycling rate basically increases. However, the labor cost also increases and brings lower profit, which is the difference between the recovered material prices and the disassembly costs. On the other hand, since the precedence relationships among disassembly tasks of the product also change with the parts selections, it is also required to optimize allocation of the tasks in designing a disassembly line. In addition, because information is required for such a design, the recycling rate, profit of each part and disassembly task times take precedence among the disassembly tasks. However, it is difficult to obtain that information in advance before collecting the actual EOL product. This study proposes and analyzes an optimal disassembly system design using integer programming with the environmental and economic parts selection (Igarashi et al., 2013), which harmonizes the recycling rate and profit using recyclability evaluation method (REM) developed by Hitachi, Ltd. The first stage involves optimization of environmental and economic parts selection with integer programming with ${\varepsilon}$ constraint, and the second stage involves optimization of the line balancing with integer programming in terms of minimizing the number of stations. The first and second stages are generally and mathematically formulized, and the relationships between them are analyzed in the cases of cell phones, computers and cleaners.

Evolution of Automatic Ordering System in Retail Market : Analyzing Inventory Data

  • Paik, SiHyun;Frazier, DeWayne P.;Mark, Isenhoff
    • International Journal of Advanced Culture Technology
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    • v.3 no.2
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    • pp.1-14
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    • 2015
  • The purpose of this paper is to reveal two problems in the existing inventory systems in retail market, and to suggest a Two-Bin System under Automatic Ordering System considering only base-stock. Large retailers already have a sophisticated inventory system based on an automatic ordering principle. However, why does the out-of-stock (OOS) happen in large discount stores in spite of having a good inventory system? This paper suggests two systems after finding the root causes concerning the previous question. For evaluating the performance of each system, the random 200 data set in each sample group was generated from MINITAB 16 and obeyed the Poisson distribution. The existing inventory system in retail market cannot help generating OOS due to indwelling contradiction in itself. The reasons are the ordering deadline and the relationship between ordering quantity and base stock. This paper also demonstrates that these previous studies on inventory fall into the closed loop. Also the paper shows that the performance of the replenishment policy was better than traditional methods dealing with ordering quantity and base stock.