From waste to value – a system dynamics model for strategic decision-making in closed-loop supply chains

Although the field of closed-loop supply chain management has attracted a lot of attention in recent years and the management of reverse logistics processes has become a major field of supply chain management, there is still a lack of research conducting analyses using a comprehensive approach that takes the complexity of problems of reverse logistics processes into account. Hence, the purpose of this paper is to develop a model that allows an original equipment manufacturer in the electronics industry to test different value recovery strategies for business-to-business products in a closed-loop supply chain setting. For this purpose system dynamics is used because this approach enables one to capture the high complexity of reverse logistics processes and is suitable, contrary to traditional optimisation approaches, for analysing the dynamic behaviour of closed-loop supply chains comprehensively. The simulation analysis identifies leverage points for the improvement of decisions concerning reverse logistics. In particular, the simulation runs conducted highlight the high complexity and connectivity inherited with various value recovery processes. The paper contributes to a better understanding of supply chain dynamics, the impact of product backflow, and reverse logistics.     

Implementing just-in-time philosophy to reverse logistics systems: a review

Just-in-time (JIT) and reverse logistics are two important philosophies. Coincidentally, both are related to reducing the impact on the environment. However, they are sometimes in conflict with each other. The former focuses on moving the materials smoothly which require a stable demand and supply, but the latter is weak in terms of predicting how many returned products will be processed. Therefore, there is a need to investigate the impact of JIT to reverse logistics systems. After an extensive literature review based on a model developed for this purpose, different functions, namely reverse logistics structure, process model, product life cycle, information system model, and JIT performance, have been identified that have great impact on integrating JIT with reverse logistics. In short, a process model with JIT can have a better control on cost and efficiency of reverse logistics activities, and product life cycle management with JIT helps to design the product that consider the reverse activities in various process models. An information system can support both process model and product life cycle management for JIT reverse logistics. Details are presented in this paper.     

Robust closed-loop supply chain network design for perishable goods in agile manufacturing under uncertainty

In this study, a general comprehensive model is proposed for strategic closed-loop supply chain network design under interval data uncertainty. The proposed model considers various assumptions such as multiple periods, multiple products, and multiple supply chain echelons as well as uncertain demand and purchasing cost. In addition, bill of materials for each product is considered via a new approach in management of forward and reverse flows of products for producing new products and reusing or disassembling returned products. Uncertainty of parameters in the proposed model is handled via an interval robust optimisation technique. The model assumptions are well matched with decision making environments of food and high-tech electronics manufacturing industries. The factors that make these two industries similar are time-dependent properties of products such as prices and warehousing lifetime period. The computational results of solving the proposed model via LINGO 8 demonstrate efficiency of the proposed model in dealing with uncertainty in an agile manufacturing context.     

A strategic decision support system for logistics and supply chain network design

This paper aims to develop a strategic decision support system for logistics and supply chain network design of a multi-stage, multi-commodity, and multi-period distribution and transportation system. A mixed integer linear programming model is proposed to tackle the problem while minimizing the operating, transportation and handling cost through all tiers of the supply chain network. A genetic algorithm based method has been proposed to solve the problem in a large scale realistic environment. The efficacy of the developed strategic decision support model in achieving better utilization of network and resources to fulfil the customer demand is demonstrated using illustrative scenarios inspired from the real case of a logistics company.     

Improving the resilience of maritime supply chains: The integration of ports and inland transporters in duopoly markets

The adverse impact of the outbreak of COVID-19 has reduced ports’ operational efficiency. In addition, ports and inland logistics providers are generally independent of each other and difficult to work together, which leads to time loss. Thus, as the core player, ports can integrate with inland logistics providers to improve the efficiency and resilience of maritime supply chains. This study examines the strategic options of two competing maritime supply chains consisting of ports and inland logistics providers. We investigate the impact of cooperation between ports and inland logistics providers and government regulation on the maritime supply chain by comparing members’ optimal pricing and overall social welfare under centralized, decentralized, and hybrid scenarios. Results indicate that the hybrid scenario is an equilibrium strategy for maritime supply chain, although this strategy is not optimal for governments seeking to improve supply chain resilience and maximize social welfare. Furthermore, observations show that through government economic intervention, both seaborne supplies can be incentivized to adopt an integrated strategy, and business and society can achieve a win–win situation.     

Mitigating supply chain disruptions through interconnected logistics services in the Physical Internet

This paper investigates the resilience of inventory models using interconnected logistics services in the Physical Internet (PI). With traditional supply chain network design, companies define and optimise their own logistics networks, resulting in current logistics systems being a set of independent heterogeneous logistics networks. The concept of PI aims to integrate independent logistics networks into a global, open, interconnected system. Prior research has shown that new inventory models enabled by and applied to PI could help reduce inventory levels thanks to its high flexibility. Continuing along these lines, this paper examines how inventory models applying PI deal with disruptions at hubs and plants. To attain this, a single product inventory problem with uncertain demands and stochastic supply disruptions is studied. A simulation-based optimisation model is proposed to determine inventory control decisions. The results suggest that the PI inventory model, with greater agility and flexibility, outperforms the current classic inventory models in terms of resilience. Moreover, the difference in performance increases when the product value, penalty costs and disruption frequency increases. This paper indicates a novel approach to build a resilient supply network.     

Proactive environmental strategies and performance: role of green supply chain processes and green product design in the Chinese high-tech industry

Though many firms still believe that passive environmental strategies are sufficient, it is pertinent that they move beyond this belief and take a proactive supply chain-wide environmental stance so as to create a sustainable environment. In this paper, we seek to extend current work within green supply chain management by considering multiple green supply chain capabilities and performance measures. We hypothesise the linkage between environmental orientation, green supply chain capabilities and performance by drawing upon stakeholder theory and natural resource-based view. More importantly, our study is the first to distinguish between product and process-related capabilities in the green supply chain area and study their direct and mediating role with respect to environmental and financial performance measures. Using survey data collected from 256 Chinese-based high-tech firms, we analyse several hypothesised relationships. Our results provide strong support for the significant role that green product design and green supply chain processes can play in improving firms’ environmental and financial performance. Interestingly, our results also suggest that green product design may not have a direct impact on financial performance.     

A paler shade of green: implications of green product deletion on supply chains

Product management activities by operations, marketing, and finance functions have typically focused on the innovation, acquisition, growth, and management of product lines and products. The same is true when considering product management for green products. The latter stages of critical strategic decisions related to product deletion or discontinuation have received less emphasis. In this conceptual paper, the focus is on green product deletion implications for supply chain management and operations. Organisations may view green product deletion as evolving from a deep green to a paler shade of green in their product offerings. A proposed strategic framework pays particular attention to the implications of the green product deletion decision for supply chain processes and operational competencies. In this situation, lessened organisational greenness needs to be weighed against other organisational and operational competencies. The strategic and inter-organisational relationships associated with this decision help set the stage for future research on this critical, yet neglected, organisational and operational supply chain issue.     

Integrating reverse logistics into the strategic planning of a supply chain

This paper proposes a mixed-integer programming (MIP) model for the strategic production and distribution planning of a supply chain (SC) integrating reverse logistics system. Such reverse logistics planning addresses the collection, recovery and marketing of recovered products, in addition to returned components and packing/wrapping materials. The model includes an approach that uses retail outlets as a two-way channel for marketing new products, collecting used/returned products and remarketing recovered products as a way of promoting an effective product recovery system in SC operation and optimising costs. The recovery of products/components is planned through a pool of recovery service providers (RSPs), so that maximum recovery can be ensured through combining the expertise of RSPs within optimum costs. The model follows a two-step process that addresses strategic decisions about product recovery in the first step, and the integration of the recovery process into overall SC decisions in the final step. A numerical example illustrates the applicability of the model. A sensitivity analysis has been conducted to show the effects that changes in the recovered product quantity have on the overall SC performance.     

A two-stage robust programming approach to demand-driven disassembly planning for a closed-loop supply chain system

The closed-loop supply chain system, which integrates forward and reverse logistics, is a desirable policy for retaining recoverable resources and extending the life cycles of products. In this study, we propose a methodology to contend with a demand-driven disassembly planning problem under a closed-loop supply chain system. A two-stage robust programming model is developed correspondingly, such that multiple products with a hierarchical product's structure are disassembled to satisfy uncertain demands in multiple periods. The objective of the model is to determine a robust decision for recycle volume and timing of each type of end-of-life (EOL) product, as well as recovery strategies. The results provide two-stage decisions by considering future scenarios of periodic demands at the beginning of a planning horizon. The first-stage decision is to determine a compromise solution that is close to the optimal solution for every scenario while retaining a certain level of infeasibility of constraints, such as unsatisfied demand. Afterward, when the outcome of a scenario has been realised, the second-stage decision, such as, inventory volume, is conducted to become a buffer for mitigating uncertain impacts. Furthermore, the computational results confirm the trade-off relationship between solution robustness and model robustness, which are core results of the robust model apart from expected profit. The different types of decision makers’ preferences toward risk can be accounted for to determine a compromise robust solution.     

Product complexity and supply chain design

To assemble a product, each and every part is required. Hence, the more parts in the product, the greater the risk of disruption. Compared with retailers or assemblers of simple products, manufacturers of complex products are much more sensitive to supply chain delays. This heightened vulnerability to supply chain disruptions should lead complex product assemblers to design less risky supply chains. Supply chain design should depend on the complexity of the product assembled or manufactured. This paper models how product complexity drives the likelihood of disruption for given component supply chain reliabilities. The paper provides insights for supply chain design that comprehends the impact of product complexity.     

Reliable design of a closed loop supply chain network under uncertainty: An interval fuzzy possibilistic chance-constrained model

This article seeks to offer a systematic approach to establishing a reliable network of facilities in closed loop supply chains (CLSCs) under uncertainties. Facilities that are located in this article concurrently satisfy both traditional objective functions and reliability considerations in CLSC network designs. To attack this problem, a novel mathematical model is developed that integrates the network design decisions in both forward and reverse supply chain networks. The model also utilizes an effective reliability approach to find a robust network design. In order to make the results of this article more realistic, a CLSC for a case study in the iron and steel industry has been explored. The considered CLSC is multi-echelon, multi-facility, multi-product and multi-supplier. Furthermore, multiple facilities exist in the reverse logistics network leading to high complexities. Since the collection centres play an important role in this network, the reliability concept of these facilities is taken into consideration. To solve the proposed model, a novel interactive hybrid solution methodology is developed by combining a number of efficient solution approaches from the recent literature. The proposed solution methodology is a bi-objective interval fuzzy possibilistic chance-constraint mixed integer linear programming (BOIFPCCMILP). Finally, computational experiments are provided to demonstrate the applicability and suitability of the proposed model in a supply chain environment and to help decision makers facilitate their analyses.     

面向现代物流的饮品包装数字化设计及优化研究

目的传统包装设计流程对于产品包装与物流环节的匹配性关注较少,造成物流浪费。为了解决这一问题,需要对传统包装设计流程进行改进。方法在分析产品包装生命周期内周转环节的基础上,采用逆向分析物流环节的方法,利用TOPS Pro软件进行模数分割以确定产品包装最大外尺寸系列;利用Pro/E绘图功能进行局部造型设计和结构设计,并利用行为建模方法进行容积敏感度分析;对造型进行优化,并确定容积及灌装高度。结果优化后的包装设计流程,采用模数分割、行为建模、敏感度分析等数字化设计手段,可以大大简化设计流程,同时设计结果对降低物流成本有较大帮助。结论优化后的设计流程在物流环节与产品包装的参数之间建立了合理联系,使设计结果更为可信。同时,减少了传统设计流程中设计的盲目性,提高了设计效率。     

Redesigning an integrated forward–reverse logistics system for a third party service provider: an empirical study

This paper models the logistics business for a large third party service provider and incorporates both forward and reverse product flows for the company. The model that we propose in this paper incorporates price, transportation mode and outsourcing cost. We compare our model with a reduced model that was obtained from past literature and show through Monte Carlo simulation the superiority of the full model in profit generation for the third party service provider. The full model considers multiple transportation modes across the forward and reverse logistics network based on the firm's business structure, whereas the reduced model has only one transportation option from point to point. Additionally, the full model allows for an option to outsource remanufacturing unlike the reduced model that does not permit such outsourcing options. One of the major contributions of this paper is a thorough analysis through the incorporation of pricing and transportation mode of an integrated forward and reverse logistics supply chain.     

基于层次分析法的儿童智能手表设计评价研究

目的解决产品设计方案后期评价问题。方法提出了一种基于层次分析法(AHP)的设计评估方法,首先将产品分解为若干待评价的指标并对其进行评价打分,整理数据并计算出各指标的权重值,最终得出各方案的综合得分进而排序。结果通过3款儿童智能手表的市场销售调查数据验证了该排序结果的准确性,为产品设计方案的有效评估提供了参考。结论将层次分析法引入设计评价中,可有效降低设计评价中待评估要素多、对评估者的经验知识依赖大、各因素与最终方案之间的影响关系难以判断等问题所带来的不利影响。     

基于PDM与CRM的逆向供应链产品回收管理

产品回收是逆向供应链的关键环节.论述了逆向供应链中产品回收管理的内涵和特点,从逆向物流、逆向资金流、逆向信息流的角度来分析产品回收管理应当着重考虑的几个问题.从产品价值、逆向营销、客户关系、产品创新方面阐述了产品回收的战略意义,提出了基于PDM的回收产品数据管理和基于CRM的回收产品客户管理模型,给出了在此模型下逆向供应链的产品回收管理的实现方法,实现产品回收与产品研发和产品销售的信息集成.     

Return policy in product reuse under uncertainty

One complicating factor in a reverse logistics activity is the uncertainty in the volume of the reverse product flow coupled with uncertain demand. These uncertainties are creating a problem for the reuse businesses because, in order to have a profitable business, their plants need some minimum number of used products to operate efficiently. Several researches have indicated that there is a significant quantity of used products that failed to enter the reverse channel. Therefore finding a way to ensure supply of used products is essential for the viability of the plant. In this paper, we propose the use of financial incentives (also referred to as ‘return policy’) so that adequate supply of the used products is ensured. We present a profit-maximisation model to obtain the optimal return policy. We also obtain a number of managerial guidelines for using marketing and operational strategy variables to influence the reaction parameters so as to obtain the maximum benefit from the market.     

Implications of postponement for the supply chain

As a marketing, logistics and manufacturing concept, postponement has been around in the literature for a long time. Its application can also be dated to the 1920s. However, only in recent times has it been used as a supply chain strategy. Postponement fosters a new way of thinking about product design, process design and supply chain management. In this paper, we rethink the supply chain from a postponement point of view and present the implications of postponement for the decoupling point, supply chain integration, control of the supply chain and capacity planning issues. The objective is to extend the significance of postponement towards the perspective of a holistic supply chain context.     

Integration of global manufacturing networks and supply chains: a cross case comparison of six global automotive manufacturers

Striving for new business opportunities automotive original equipment manufacturers established overseas plants in emerging markets and global manufacturing networks evolved. In this regard so-called knocked down supply chains have been the key for the establishment of successful overseas operations. Importing all parts required from the original plants in form of easy to be handled kits secures a high product quality and stable supply despite lacking qualification of local workforce and supplier bases. Over time the overseas plants and global manufacturing networks have matured by increasingly taking over value adding processes and integrating local suppliers. However, the supply chain structure and management have not been adapted accordingly and still comprise high inventory buffers and lead times. There is little research on the integrated design of global manufacturing networks and knocked down supply chains. This research aims to contribute to close this research gap by means of a cross-case study with six globally operating OEMs investigating the fit of knocked down supply chains and global manufacturing networks. On the basis of transaction cost theory, we develop an integrated framework to align global manufacturing networks and knocked down supply chain design that can serve as guideline to open logistics performance and cost potentials.