1044. Dynamics and stability in Recycling-Enhanced Supply Chains
Invited abstract in session WD-42: Recycling supply chains, stream Circular & Sustainable Supply Chains.
Wednesday, 14:30-16:00Room: Newlyn GR.02
Authors (first author is the speaker)
| 1. | Christos Papanagnou
|
| Engineering Systems and Supply Chain Management, Aston University |
Abstract
This study examines the role of third-party centres in reverse supply chains, focusing on their ability to streamline product returns, refurbishment, and remanufacturing to enhance overall supply chain performance. A three-echelon reverse supply chain model is considered consisting of a retailer, a hybrid third-party centre, and a manufacturer. The model explores the impact of third-party centres on the efficiency of handling returned products, with a focus on inventory replenishment strategies and minimising order variability (bullwhip effect).
A state-space model is developed to capture the dynamics of the model. The flow of information (orders) moves backward, while product flows move both forward and backward. The model assumes a continuous replenishment policy, with inventory levels monitored through a base-stock policy at both the retailer and third-party centre.
The study’s findings indicate that the presence of a third-party centre reduces lead times for returned products and enhances inventory stability. The proportional control mechanism improves order stability, reducing variability and mitigating the bullwhip effect in the reverse supply chain. The results suggest that strategic third-party involvement in return logistics can enhance customer satisfaction by ensuring rapid product replenishment.
Keywords
- Supply Chain Management
- Control Theory
- Inventory
Status: accepted
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