The Impact of Constraints in Closed-loop Supply Chains: The Case of Reusing Components in Product Manufacturing

Roland Geyer and Luk N. Wassenhove
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Roland Geyer: University of California
Luk N. Wassenhove: INSEAD

A chapter in Distribution Logistics, 2005, pp 203-219 from Springer

Abstract: Abstract Closed-loop supply chains for end-of-life products are circular production structures that recover products after the end of their useful lives and reprocess them into secondary resources for the original supply chain. Since most products are not designed for end-of-life value recovery closed-loop supply chains are likely to suffer from technical or economic bottlenecks, called constraints. From a modelling perspective closed-loop supply chains are feedback loops, and their constraints can therefore introduce non-linearities into the production system. This chapter discusses two such constraints, limited component durability and finite product life cycles, in detail and quantifies their impacts in the case of value recovery based on component reuse. The analysis shows that these constraints can have a significant impact on the performance of closed-loop supply chains.

Keywords: Supply Chain; Product Life Cycle; Reverse Logistics; Collection Rate; Residence Time Distribution (search for similar items in EconPapers)
Date: 2005
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Persistent link: https://EconPapers.repec.org/RePEc:spr:lnechp:978-3-642-17020-1_11

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DOI: 10.1007/978-3-642-17020-1_11

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