Design of Closed Loop Supply Chains

Harold Krikke, Jacqueline Bloemhof-Ruwaard and Luk Van Wassenhove

ERIM Report Series Research in Management from Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam

Abstract: Increased concern for the environment has lead to new techniques to design products and supply chains that are both economically and ecologically feasible. This paper deals with the product - and corresponding supply chain design for a refrigerator. Literature study shows that there are many models to support product design and logistics separately, but not in an integrated way. In our research we develop quantitative modelling to support an optimal design structure of a product, i.e. modularity, repairability, recyclability, as well as the optimal locations and goods flows allocation in the logistics system. Environmental impacts are measured by energy and waste. Economic costs are modelled as linear functions of volumes with a fixed set-up component for facilities. We apply this model using real life R&D data of a Japanese consumer electronics company. The model is run for different scenarios using different parameter settings such as centralised versus decentralised logistics, alternative product designs, varying return quality and quantity, and potential environmental legislation based on producer responsibility.

Keywords: facility location; network design; product design; reverse logistics; supply chain management (search for similar items in EconPapers)
JEL-codes: M M11 R4 (search for similar items in EconPapers)
Date: 2001-08-09
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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