Production planning and control of closed-loop supply chains

More and more supply chains emerge that include a return flow of materials. Many original equipment manufacturers are nowadays engaged in the remanufacturing business. In many process industries, production defectives and by-products are reworked. These closed-loop supply chains deserve special attention. Production planning and control in such hybrid systems is a real challenge, especially due to increased uncertainties. Even companies that are engaged in remanufacturing operations only, face more complicated planning situations than traditional manufacturing companies.We point out the main complicating characteristics in closed-loop systems with both remanufacturing and rework, and indicated the need for new or modified/extended production planning and control approaches. An overview of the existing scientific contributions is given. It appears that we only stand at the beginning of this line of research, and that many more contributions are needed and expected in the future.closed-loop supply chains;Production planning and control

Sustainable product development strategies: Business planning and performance implications

Copyright © 2012 by Institution of Mechanical Engineers. This is the author's accepted manuscript. The final published article is available from the link below.Manufacturing firms are under many financial and competitive pressures which focus attention on the performance of their manufacturing processes. In this paper the opportunities for improving the environmental impact of products within the constraints of existing manufacturing infrastructure are examined. Approaches which support sustainability in two aspects are proposed, firstly, the provision of products to the users in ways which extend the product life and secondly, manufacturing approaches which reduce resource usage. This paper outlines three different sustainable development strategies for different product types and describes the cost implications for manufacturers across the life-cycle. The performance measures affected by these strategies are examined drawing on product development case studies from a number of high technology sectors to highlight the different approaches taken. The results are intended to aid manufacturers during the earliest stages of business planning to consider alternative product development approaches which are more sustainable

Integrating Closed-loop Supply Chains and Spare Parts Management at IBM

Ever more companies are recognizing the benefits of closed-loop supplychains that integrate product returns into business operations. IBMhas been among the pioneers seeking to unlock the value dormant inthese resources. We report on a project exploiting product returns asa source of spare parts. Key decisions include the choice of recoveryopportunities to use, the channel design, and the coordination ofalternative supply sources. We developed an analytic inventory controlmodel and a simulation model to address these issues. Our results showthat procurement cost savings largely outweigh reverse logistics costsand that information management is key to an efficient solution. Ourrecommendations provide a basis for significantly expanding the usageof the novel parts supply source, which allows for cutting procurementcosts.supply chain management;reverse logistics;product recovery;inventory management;service management

E-business and circular supply chains : increased business opportunities by IT-based customer oriented return-flow management

This paper deals with the application of IT in circular supply chains (CSCs). We consider information on the installed base critical, and present an illustrative example. Next we discuss a framework of different kinds of value contained in a return, and IT-applications useful in supporting its recovery or neutralisation in case of negative externalities. Also we show which kind of CSC is needed for which kind of return. We illustrate our work by three real life case studies.reverse logistics;supply chain management;electronic commerce;product life cycle

Production planning and control of closed-loop supply chains

More and more supply chains emerge that include a return flow of materials. Many original equipment manufacturers are nowadays engaged in the remanufacturing business. In many process industries, production defectives and by-products are reworked. These closed-loop supply chains deserve special attention. Production planning and control in such hybrid systems is a real challenge, especially due to increased uncertainties. Even companies that are engaged in remanufacturing operations only, face more complicated planning situations than traditional manufacturing companies. We point out the main complicating characteristics in closed-loop systems with both remanufacturing and rework, and indicated the need for new or modified/extended production planning and control approaches. An overview of the existing scientific contributions is given. It appears that we only stand at the beginning of this line of research, and that many more contributions are needed and expected in the future

Is the Industrial Product-Service System Really Sustainable

As the product-service system has shifted from its original concept to the Industrial PSS, its scope has expanded to include industrial products. Furthermore, the overall goal of reducing environmental impacts has been left behind. Despite the PSS's potential as a business model for a more sustainable production and consumption system, the mere addition of services to conventional products does not necessarily lead to a reduction of environmental impacts. This paper aims to discuss the concepts related to PSS, the need for considering environmental impact reduction as a critical issue for sustainability, and the role of ecodesign practices in the development of PSS

Remanufacturing and product design: designing for the 7th generation

The following is taken directly from the research report. This report investigates Design for Remanufacture in terms of both detailed product design and the business context in which Design for Remanufacture may operate. Key Study Objectives • To understand the link between design and remanufacture • To understand how Design for Remanufacture can lead to increased innovation and Sustainable Development (SD) • To identify proactive strategies to further Design for Remanufactur

Regeneration Supply Chain Model and Pool Stock Dimensioning

When regenerating complex capital goods, on-time delivery as the most valuable customers’ requirement is crucial. Schedule reliability and throughput times are being trimmed to meet their targets as precisely as possible while keeping the logistic costs in-check. After disassembly, a significant number of components face relatively long repair times and need to be reassembled on a timed schedule. The configuration of internal supply chains offers the potential to improve schedule reliability. Pooling strategies are developed and discussed to achieve higher flexibility and positive effects on logistical performance. Pools help with reducing throughput times and short-term capacity allocation to satisfy an optimal on-time schedule. Serviceable (SA) components that have already been repaired, are stored in SA-pools and, if necessary, are allocated to the reassembly. The focus of this paper is the non-serviceable pool (nSA-pool), which provides repairable components to the repair stage. The nSA-pool helps to streamline the workflow before components reach several repair shops and has a direct impact on the repair process. Therefore, a model that allows the comprehension of interactions within the internal supply chain was developed and expedient pooling strategies were derived. Furthermore, the related pool stock dimensioning of preceding pools (nSA) before the repair stage and following pools (SA) are put into perspective