190. Sustainable Inventory Management for Electric Vehicle Batteries: A Closed-Loop Supply Chain Approach with Buyback Pricing
Invited abstract in session WB-42: Sustainable battery supply chains, stream Circular & Sustainable Supply Chains.
Wednesday, 10:30-12:00Room: Newlyn GR.02
Authors (first author is the speaker)
| 1. | Saeide Jamshidpour Poshtahani
|
| School of Business and Managemnet, Queen Mary University of London | |
| 2. | Brigitte Granville
|
| School of Business and Managemnet, Queen Mary University of London, Queen Mary University of London | |
| 3. | Guven Demirel
|
| School of Business and Management, Queen Mary University of London | |
| 4. | Eun-Seok Kim
|
| School of Business and Management, Queen Mary University of London |
Abstract
In order to realize the significant energy and environmental benefits that come with the widespread adoption of electric vehicles, it is crucial to address the economic and environmental challenges associated with battery production and disposal. One effective solution is building closed-loop supply chain systems for electric vehicle batteries. This study develops an economic production quantity (EPQ) model for the closed-loop supply chain, where used batteries are directed to remanufacturing, recycling, or disposal based on their quality grades. We analyze and compare two setups: a fixed buyback price scenario, as a benchmark, and a variable buyback price scenario, where the buyback price is decided according to quality. Based on our findings, we conclude that incorporating the recycling into the reverse supply chain reduces direct costs and environmental externalities only beyond a critical threshold of recyclable fraction of returned batteries. Furthermore, by differentiating buyback prices based on quality, substantial cost reductions can be achieved, while simultaneously reducing environmental externalities. These findings provide actionable guidance for designing economically viable and environmentally responsible supply chains for electric vehicle batteries.
Keywords
- Supply Chain Management
- Inventory
- Reverse Logistics / Remanufacturing
Status: accepted
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