The System Dynamics Model in Electronic Products Closed‐Loop Supply Chain Distribution Network with Three‐Way Recovery and the Old‐for‐New Policy

With the technological developments and rapid changes in demand pattern, diverse varieties of electronic products are entering into the market with reduced lifecycle which leads to the environmental problems. The awareness of electronic products take‐back and recovery has been increasing in electronic products supply chains. In this paper, we build a system dynamics model for electronic products closed‐loop supply chain distribution network with the old‐for‐new policy and three electronic products recovery ways, namely, electronic products remanufacturing, electronic component reuse and remanufacturing, and electronic raw material recovery. In the simulation study, we investigate the significance of various factors including the old‐for‐new policy, collection and remanufacturing, their interactions and the type of their impact on bullwhip, and profitability through sensitivity analysis. Our results instruct that the old‐for‐new policy and three electronic products recovery ways can reduce the bullwhip effect in the retailers and the distributors and increases the profitability in the closed‐loop supply chain distribution network.