The value of regulating returns for enhancing the dynamic behaviour of hybrid manufacturing-remanufacturing systems

Several studies have determined that product returns positively impact on the dynamics of hybrid manufacturing-remanufacturing systems, provided that they are perfectly correlated with demand. By considering imperfect correlation, we observe that intrinsic variations of returns may dramatically deteriorate the operational performance of these closed-loop supply chains. To cope with such added complexity, we propose a structure for controlling the reverse flow through the recoverable stock. The developed mechanism, in the form of a prefilter, is designed to leverage the known positive consequences of the deterministic component of the returns and to buffer the harmful impact of their stochastic component. We show that this outperforms both the benchmark push system and a baseline solution consisting of regulating all the returns. Consequently, we demonstrate that the operation of the production system is greatly smoothed and inventory is better managed. By developing a new framework for measuring the dynamics of closed-loop supply chains, we show that a significant reduction in the net stock, manufacturing, and remanufacturing variances can be achieved, which undoubtedly has implications both for stock reduction and production stabilization. Thus, the known benefits of circular economy models are strengthened, both economically and environmentally

Applying Revenue Management to the Reverse Supply Chain

We study the disposition decision for product returns in a closed-loop supply chain. Motivated by the asset recovery process at IBM, we consider two disposition alternatives. Returns may be either refurbished for reselling or dismantled for spare parts. Reselling a refurbished unit typically yields higher unit margins. However, demand is uncertain. A common policy in many firms is to rank disposition alternatives by unit margins. We show that a revenue management approach to the disposition decision which explicitly incorporates demand uncertainty can increase profits significantly. We discuss analogies between the disposition problem and the classical airline revenue management problem. We then develop single period and multi-period stochastic optimization models for the disposition problem. Analyzing these models, we show that the optimal allocation balances expected marginal profits across the disposition alternatives. A detailed numerical study reveals that a revenue management approach to the disposition problem significantly outperforms the current practice of focusing exclusively on high-margin options, and we identify conditions under which this improvement is the highest. We also show that the value recovered from the returned products critically depends on the coordination between forward and reverse supply chain decisions.remanufacturing;revenue management;onderdelen;revenues;spare parts inventory

Performance Evaluation of Remanufacturing Systems

Implementation of new environmental legislation and public awareness has increased the responsibility on manufacturers. These responsibilities have forced manufacturers to begin remanufacturing and recycling of their goods after they are disposed or returned by customers. Ever since the introduction of remanufacturing, it has been applied in many industries and sectors. The remanufacturing process involves many uncertainties like time, quantity, and quality of returned products. Returned products are time sensitive products and their value drops with time. Thus, the returned products need to be remanufactured quickly to generate the maximum revenue. Every year millions of electronic products return to the manufacturer. However, only 10% to 20% of the returned products pass through the remanufacturing process, and the remaining products are disposed in the landfills. Uncertainties like failure rate of the servers, buffer capacity and inappropriate preventive maintenance policy would be highly responsible the delays in remanufacturing. In this thesis, a simulation based experimental methodology is used to determine the optimal preventive maintenance frequency and buffer allocation in a remanufacturing line, which will help to reduce the cycle time and increase the profit of the firm. Moreover, an estimated relationship between preventive maintenance frequency and MTBF (Mean Time Between Failure) is presented to determine the best preventive maintenance frequency for any industry. The solution approach is applied to a computer remanufacturing and a cell phone remanufacturing industry. Analysis of variance and regression analysis are performed to denote the influential factors in the remanufacturing line, and optimization is done by using the regression techniques and ANOVA results

"Rotterdam econometrics": publications of the econometric institute 1956-2005

This paper contains a list of all publications over the period 1956-2005, as reported in the Rotterdam Econometric Institute Reprint series during 1957-2005.

Reverse logistics

This paper gives an overview of scientific literature that describes and discusses cases of reverse logistics activities in practice. Over sixty case studies are considered. Based on these studies we are able to indicate critical factors for the practice of reverse logistics. In addition we compare practice with theoretical models and point out research opportunities in the field

Used product acquisition, sorting and disposition for circular supply chains: Literature review and research directions

The vision of a circular economy (CE) inspires firms, governments, and scholars alike. The transition is underway in both practice and the literature, but success depends on the effective implementation of circular supply chains (CSCs), which encompass acquiring used products, sorting them by type and quality, and deciding which to dispose to various processing options. We review 131 high-impact journal articles on returns acquisition, sorting, and disposition (ASD) over the decade 2012-2021 to assess the current status of ASD research for CSCs and to discuss important research directions for supporting the transition to a CE. Uniquely synthesising the state of the art on all these three overarching decision areas, we find aspects of CSCs prominent in the decade's research agenda, such as closed loop supply chain coordination and ASD for remanufacturing, and highlight growing coverage of behavioural considerations. Research applicability has been constrained by a lack of empirical studies, limited practical validation of mathematical models, a focus on economic objectives, and restrictive modelling assumptions about behaviour and uncertainty in returns. We recommend further research in each part of ASD to facilitate a CSC, and as a whole, for transitioning to a CE. CE concepts such as joint decision-making between product design and returns management, cross-sector collaboration, and product-service systems should inform the agenda for CSC research

E-Fulfillment and Multi-Channel Distribution – A Review

This review addresses the specific supply chain management issues of Internet fulfillment in a multi-channel environment. It provides a systematic overview of managerial planning tasks and reviews corresponding quantitative models. In this way, we aim to enhance the understanding of multi-channel e-fulfillment and to identify gaps between relevant managerial issues and academic literature, thereby indicating directions for future research. One of the recurrent patterns in today’s e-commerce operations is the combination of ‘bricks-and-clicks’, the integration of e-fulfillment into a portfolio of multiple alternative distribution channels. From a supply chain management perspective, multi-channel distribution provides opportunities for serving different customer segments, creating synergies, and exploiting economies of scale. However, in order to successfully exploit these opportunities companies need to master novel challenges. In particular, the design of a multi-channel distribution system requires a constant trade-off between process integration and separation across multiple channels. In addition, sales and operations decisions are ever more tightly intertwined as delivery and after-sales services are becoming key components of the product offering.Distribution;E-fulfillment;Literature Review;Online Retailing

Applying Revenue Management to the Reverse Supply Chain

We study the disposition decision for product returns in a closed-loop supply chain. Motivated by the asset recovery process at IBM, we consider two disposition alternatives. Returns may be either refurbished for reselling or dismantled for spare parts. Reselling a refurbished unit typically yields higher unit margins. However, demand is uncertain. A common policy in many firms is to rank disposition alternatives by unit margins. We show that a revenue management approach to the disposition decision which explicitly incorporates demand uncertainty can increase profits significantly. We discuss analogies between the disposition problem and the classical airline revenue management problem. We then develop single period and multi-period stochastic optimization models for the disposition problem. Analyzing these models, we show that the optimal allocation balances expected marginal profits across the disposition alternatives. A detailed numerical study reveals that a revenue management approach to the disposition problem significantly outperforms the current practice of focusing exclusively on high-margin options, and we identify conditions under which this improvement is the highest. We also show that the value recovered from the returned products critically depends on the coordination between forward and reverse supply chain decisions

"Rotterdam econometrics": publications of the econometric institute 1956-2005

This paper contains a list of all publications over the period 1956-2005, as reported in the Rotterdam Econometric Institute Reprint series during 1957-2005