Optimizing the Supply Chain in Reverse Logistics
Pitipong Veerakamolmal IBM Global Services Supply Chain Planning – Business Innovation Services 404 Wyman Street, Waltham, MA 02454. and Surendra M. Gupta* Laboratory for Responsible Manufacturing 334 SN, Department of MIME Northeastern University 360 Huntington Avenue Boston, MA 02115.
Supply chain planning systems in reverse logistics present the industry with new problems that demand new approaches. The specific problem of the reverse logistics for the end-of-life (EOL) products addressed in this study is to determine the number of products to disassemble in a given time period to fulfill the demand of various components during that and subsequent time periods. We present a mathematical programming based model to solve the problem. When the problem is solved, it gives the number and timing of each product type to be disassembled in order to fulfill the demand of components needed at minimal disassembly and disposal costs. We illustrate the solution methodology with a case example. Keywords: Disassembly, remanufacturing, reverse logistics, supply chain planning
The supply chain planning in reverse logistics of end-of-life (EOL) products embraces many different characteristics of environmentally conscious manufacturing, including disassembly, reuse, recycling, and remanufacturing1. As manufacturers change from isolated business units to integrated network partners, they require effective and efficient Supply Chain Planning (SCP) strategies for materials, components, and products. SCP can help speed up the reverse logistics through the availability of online marketplace to support the networking of environmentally conscious product suppliers, manufacturers, distributors and customers. Online marketplace allows manufacturers and their network of suppliers and strategic partners to collaborate and conduct business over the internet, which aims to reduce the cost of...