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Decentralized master production and recycling scheduling of lithium-ion batteries: a techno-economic optimization model

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  • Christian Scheller

    (Technische Universität Braunschweig)

  • Kerstin Schmidt

    (Technische Universität Braunschweig)

  • Thomas Stefan Spengler

    (Technische Universität Braunschweig)

Abstract

Due to the rapid growth of e-mobility, increasing amounts of lithium-ion batteries are produced and returned after their lifetime. However, these returns will lead to new challenges for manufacturers and recyclers, considering the end-of-life. Especially the increasing interaction between forward and reverse supply chain and the related decision on the end-of-life options (e.g., recycling, remanufacturing, and reuse) need to be planned and executed in a sophisticated way. Therefore, we focus on the interactions between recycler and manufacturer as two of the major actors of each supply chain. We formulate optimization models for the master recycling scheduling and the master production scheduling. To analyze current decentralized decisions of the recycler and remanufacturer, we further formulate an integrated master production and recycling scheduling model. In the following, we describe the production and recycling of lithium-ion batteries in a case study. Here, we examine five different scenarios. We find that for all scenarios, manufacturer and recycler achieve positive contribution margins. However, inefficiencies always occur due to opportunistic behavior. As a result, reuse is performed only in case of centralized planning. Hence, coordination is needed between the forward and reverse supply chain to achieve the maximal contribution margin.

Suggested Citation

  • Christian Scheller & Kerstin Schmidt & Thomas Stefan Spengler, 2021. "Decentralized master production and recycling scheduling of lithium-ion batteries: a techno-economic optimization model," Journal of Business Economics, Springer, vol. 91(2), pages 253-282, March.
    • Handle: RePEc:spr:jbecon:v:91:y:2021:i:2:d:10.1007_s11573-020-00999-7
    DOI: 10.1007/s11573-020-00999-7
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    References listed on IDEAS

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    Cited by:

    1. Harald Dyckhoff & Rainer Souren, 2023. "Are important phenomena of joint production still being neglected by economic theory? A review of recent literature," Journal of Business Economics, Springer, vol. 93(6), pages 1015-1053, August.
    2. Scheller, Christian & Schmidt, Kerstin & Spengler, Thomas S., 2023. "Effects of network structures on the production planning in closed-loop supply chains – A case study based analysis for lithium-ion batteries in Europe," International Journal of Production Economics, Elsevier, vol. 262(C).
    3. Parisa Rafigh & Ali Akbar Akbari & Hadi Mohammadi Bidhandi & Ali Husseinzadeh Kashan, 2022. "A sustainable supply chain network considering lot sizing with quantity discounts under disruption risks: centralized and decentralized models," Journal of Combinatorial Optimization, Springer, vol. 44(3), pages 1387-1432, October.

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    More about this item

    Keywords

    Closed-loop supply chain; Production planning; Recycling planning; Master production scheduling; Lithium-ion battery;
    All these keywords.

    JEL classification:

    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis

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