Closed-loop supply chains: What reverse logistics factors influence performance?

Salvatore Cannella, Manfredi Bruccoleri and Jose M. Framinan

International Journal of Production Economics, 2016, vol. 175, issue C, 35-49

Abstract: This paper analyses the inventory and order flow dynamics in closed-loop supply chains (CLSCs). In this kind of supply chains the reverse flow of materials entering the system for recycling purposes complicates the way in which inventories should be managed and replenishment policies should be designed. Specifically, we analyse the relationships between some reverse logistics’ factors (remanufacturing lead-time, return rate of recycled products, reverse order policy, and number of supply chain tiers) on the order and inventory variance amplification. We firstly perform a systematic literature review of the related studies. Secondly, by adopting a difference equation math approach and design of experiment we perform a robust what-if analysis of a CLSC under a variety of operational and market conditions. Results show that, ceteris paribus, CLSC outperforms a forward supply chain, both in mono-echelon and multi-echelon structures and under both stationary and turbulent market demands. Furthermore, reducing remanufacturing lead-time and promoting information transparency may be crucial to improve CLSC dynamics. Finally, we use the research findings to provide interesting managerial consideration about how to reduce unnecessary operational members’ costs.

Keywords: Supply chain dynamics; Reverse logistics; Remanufacturing lead time; Bullwhip effect; Systematic literature review; Simulation (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (29)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S092552731600013X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:175:y:2016:i:c:p:35-49

DOI: 10.1016/j.ijpe.2016.01.012

Access Statistics for this article

International Journal of Production Economics is currently edited by Stefan Minner

More articles in International Journal of Production Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().