Dynamic Performance of a Recycling Supply Chain


This research investigates a 3 echelon recycling (or remanufacturing) supply chain where a push-based policy is adopted by all 3 players in their return loop. We focus on the impact of return yield and recycling process/remanufacturing lead time on the system dynamics performance. Two variables are studied, i.e. order rate and serviceable inventory. The result suggests that unlike the pull-based system, in the push-based recycling/remanufacturing system, the higher return yield does not contribute to improving dynamics performance in terms of overshoot and risk of stock out when a unit step response as input. However, rationally allocating the return yield, i.e. the number of used products, to each player in the RSC may help to get the better overall performance of the SC. The impact of the recycling process/remanufacturing lead time, Tr, is not as significant as return yield. The longer Tr leads to higher overshoot and longer time to recovery inventory, as well as more oscillation in the upstream echelon.

Pre-prints of the 16th International Working Seminar of Production Economics, Innsbruck, Austria, 1st-5th March, Innsbruck, Austria, 623-634