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System Dynamics modelling of a production and inventory system for remanufacturing to evaluate system improvement strategies

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  • Poles, Roberto

Abstract

Remanufacturing activity views the reverse supply chain of reclaimed goods as integral to the traditional supply chain to the consumer. At the end of the useful life of products, a reverse supply process is activated in which unwanted materials and products are recovered from end users to recapture some of their value. Therefore, planning for the traditional supply chain of goods must take into account the recovered products. Two main processes that need to be considered are inventory control and production planning. In this paper, we model a production and inventory system for remanufacturing using a System Dynamics simulation modelling approach. The aim is to explore the dynamics of the remanufacturing process and to evaluate system improvement strategies. Specifically, the analysis focuses on the effects of capacity planning and lead times on the system which presents push and pull inventory policies driven mainly by the inventory coverage. The research findings reveal efficiency in the remanufacturing process with higher remanufacturing capacity if the quantity of remanufacturable returns and the remanufacturing lead time are increased and decreased respectively. Moreover, an increase of the production lead time has a higher effect on the system performance than an equivalent increase in the remanufacturing lead time. In addition, we provide a case study both to support these findings and to further validate the developed model.

Suggested Citation

  • Poles, Roberto, 2013. "System Dynamics modelling of a production and inventory system for remanufacturing to evaluate system improvement strategies," International Journal of Production Economics, Elsevier, vol. 144(1), pages 189-199.
  • Handle: RePEc:eee:proeco:v:144:y:2013:i:1:p:189-199
    DOI: 10.1016/j.ijpe.2013.02.003
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    7. Fleischmann, Moritz & Bloemhof-Ruwaard, Jacqueline M. & Dekker, Rommert & van der Laan, Erwin & van Nunen, Jo A. E. E. & Van Wassenhove, Luk N., 1997. "Quantitative models for reverse logistics: A review," European Journal of Operational Research, Elsevier, vol. 103(1), pages 1-17, November.
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    Cited by:

    1. Spiegler, Virginia L.M. & Naim, Mohamed M. & Towill, Denis R. & Wikner, Joakim, 2016. "A technique to develop simplified and linearised models of complex dynamic supply chain systems," European Journal of Operational Research, Elsevier, vol. 251(3), pages 888-903.
    2. Govindan, Kannan & Soleimani, Hamed & Kannan, Devika, 2015. "Reverse logistics and closed-loop supply chain: A comprehensive review to explore the future," European Journal of Operational Research, Elsevier, vol. 240(3), pages 603-626.
    3. Qinxin Guo & Enci Wang & Yongyou Nie & Junyi Shen, 2017. "Profit or Environment? A System Dynamic Model Analysis of Waste Electrical and Electronic Equipment Management System in China," Discussion Paper Series DP2017-30, Research Institute for Economics & Business Administration, Kobe University.
    4. Cheng, Yung-Hsiang & Chang, Yu-Hern & Lu, I.J., 2015. "Urban transportation energy and carbon dioxide emission reduction strategies," Applied Energy, Elsevier, vol. 157(C), pages 953-973.
    5. Yasser A. Davizón & César Martínez-Olvera & Rogelio Soto & Carlos Hinojosa & Piero Espino-Román, 2015. "Optimal Control Approaches to the Aggregate Production Planning Problem," Sustainability, MDPI, Open Access Journal, vol. 7(12), pages 1-16, December.
    6. repec:eee:proeco:v:193:y:2017:i:c:p:160-171 is not listed on IDEAS
    7. repec:gam:jsusta:v:7:y:2015:i:12:p:16324-16339:d:60355 is not listed on IDEAS
    8. Xiangyun Chang & Junjie Fan & Yabing Zhao & Jie Wu, 2016. "Impact of China’s Recycling Subsidy Policy in the Product Life Cycle," Sustainability, MDPI, Open Access Journal, vol. 8(8), pages 1-21, August.

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