Effects of uncertainty on a tire closed-loop supply chain network

In a closed-loop supply chain (CLSC) network, there are both forward and reverse supply chains. In this research, a tire remanufacturing CLSC network is designed and optimized based on tire recovery options. The objective of the optimization model is to maximize the total profit. The optimization model includes multiple products, suppliers, plants, retailers, demand markets, and drop-off depots. The application of the model is discussed based on a realistic network in Toronto, Canada using map. In addition, a new decision tree-based methodology is provided to calculate the net present value of the problem in multiple periods under different sources of uncertainty such as demand and returns. Furthermore, the discount cash flow is considered in the methodology as a novel innovative approach. This methodology can be applied in comparing the profitability of different design options for CLSCs

Pricing and Warranty Level Decisions for New and Remanufactured Short Life-Cycle Products

Remanufacturing has become more prominent as a recovery process to mitigate the massive disposal of short life-cycle product at its end-of-use. However, remanufactured product is often perceived to be inferior to new product, and it has lower value in consumer’s willingness to pay. To increase the perceived quality of the remanufactured product, manufacturer offers a warranty, since one of the three roles possessed in warranty is being a signal to product reliability. This paper studies the pricing decisions and warranty level decision for new and remanufactured products in a closed-loop supply chain consists of a manufacturer and a retailer. The optimization modeling is performed under Stackelberg game with manufacturer as the leader. We found that higher expansion effectiveness coefficient would increase the supply chain profit. Also, there is an interval of demand’s speed of change, where the total profit would be at its highest. The optimum warranty level can be achieved regardless the initial warranty level set at the beginning of retailer’s optimization. Furthermore, the remanufactured product’s wholesale and retail prices are influenced by the expansion effectiveness coefficient

Supply chain network design models for a circular economy: a review and a case study assessment

Global supply chains are getting increasingly dispersed, and hence, more complex. This has also made them more vulnerable to disruptions and risks. As a result, there is a constant need to reconfigure/redesign them to ensure competitiveness. However, the relevant aspects/facets for doing so are fragmented and scattered across the literature. This study reviews the literature to develop a holistic understanding of the key considerations (environment, cost, efficiency, and risks) in designing/redesigning global supply chains. This understanding is then applied to assess the global supply chain network of a leading multinational tire manufacturing firm; also to provide recommendations on redesigning it. The study has significant practical and research implications for global supply chain management

Modeling a Remanufacturing Reverse Logistics Planning Problem: Some Insights into Disruptive Technology Adoption

Remanufacturing is the process to restore the functionality of high-value end-of-life (EOL) products, which is considered a substantial link in reverse logistics systems for value recovery. However, due to the uncertainty of the reverse material fow, the planning of a remanufacturing reverse logistics system is complex. Furthermore, the increasing adoption of disruptive technologies in Industry 4.0/5.0, e.g., the Internet of things (IoT), smart robots, cloud-based digital twins, and additive manufacturing, has shown great potential for a smart paradigm transition of remanufacturing reverse logistics operations. In this paper, a new mixed-integer program is modeled for supporting several tactical decisions in remanufacturing reverse logistics, i.e., remanufacturing setups, production planning and inventory levels, core acquisition and transportation, and remanufacturing line balancing and utilization. The model is further extended by incorporating utilization-dependent nonlinear idle time cost constraints and stochastic takt time to accommodate diferent real-world scenarios. Through a set of numerical experiments, the infuences of diferent demand patterns and idle time constraints are revealed. The potential impacts of disruptive technology adoption in remanufacturing reverse logistics are also discussed from managerial perspectives, which may help remanufacturing companies with a smart and smooth transition in the Industry 4.0/5.0 era

On the Dynamics of Closed-Loop Supply Chains under Remanufacturing Lead Time Variability

Remanufacturing practices in closed-loop supply chains (CLSCs) are often characterised by highly variable lead times due to the uncertain quality of returns. However, the impact of such variability on the dynamic benefits derived from adopting circular economy models remains largely unknown in the closed-loop literature. To fill the gap, this work analyses the Bullwhip and inventory performance of a multi-echelon CLSC with variable remanufacturing lead times under different scenarios of return rate and information transparency in the remanufacturing process. Our results reveal that ignoring such variability generally leads to an overestimation of the dynamic performance of CLSCs. We observe that enabling information transparency generally reduces order and inventory variability, but it may have negative effects on average inventory if the duration of the remanufacturing process is highly variable. Our findings result in useful and innovative recommendations for companies wishing to mitigate the negative consequences of lead time variability in CLSCs

Supply chain network design models for a circular economy: a review and a case study assessment

Global supply chains are getting increasingly dispersed, and hence, more complex. This has also made them more vulnerable to disruptions and risks. As a result, there is a constant need to reconfigure/redesign them to ensure competitiveness. However, the relevant aspects/facets for doing so are fragmented and scattered across the literature. This study reviews the literature to develop a holistic understanding of the key considerations (environment, cost, efficiency, and risks) in designing/redesigning global supply chains. This understanding is then applied to assess the global supply chain network of a leading multinational tire manufacturing firm; also to provide recommendations on redesigning it. The study has significant practical and research implications for global supply chain management

Literature Review of Reverse Logistic, applications and future trends

This article presents a review of the literature on Reverse Logistics (RL) research, application cases and exploration. Various databases were used to retrieve articles. This review has allowed to analyze initial concepts of RL and complementary ones with new optics and arguments developed by various authors. The main contribution is the taxonomy proposed in the development of the article. It was made up of relationship of themes and terms found in the literary review. Also, the most important fields of application and future trends in RL have been identified, where it has been determined that it is necessary to extend the analysis of RL towards an economic, social, cultural and environmental perspective

A Review on Remanufacturing Reverse Logistics Network Design and Model Optimization

Remanufacturing has gained great recognition in recent years due to its economic and environmental benefits and effectiveness in the value retention of waste products. Many studies on reverse logistics have considered remanufacturing as a key node for network optimization, but few literature reviews have explicitly mentioned remanufacturing as a main feature in their analysis. The aim of this review is to bridge this gap. In total, 125 papers on remanufacturing reverse logistics network design have been reviewed and conclusions have been drawn from four aspects: (1) in terms of network structure, the functional nodes of new hybrid facilities and the network structure combined with the remanufacturing technologies of products are the key points in the research. (2) In the mathematical model, the multi-objective function considered from different aspects, the uncertainty of recovery time and recovery channel in addition to quantity and quality, and the selection of appropriate algorithms are worth studying. (3) While considering product types, the research of a reverse logistics network of some products is urgently needed but inadequate, such as medical and furniture products. (4) As for cutting-edge technologies, the application of new technologies, such as intelligent remanufacturing technology and big data, will have a huge impact on the remanufacturing of a reverse logistics network and needs to be considered in our research