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.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Billington, C. / Lee, H. L. / Tang, C. S. (1998): Successful Strategies for Product Rollovers, Sloan Management Review, Spring 1998, pp 23–30
Davis, J. B. (1996): Product Stewardship and the Coming Age of Takeback, Business and the Environment, Cutter Information Corp.
Debo, L. / Toktay, B. / Van Wassenhove, L. N. (2001): Market segmentation and production technology selection of remanufacturable products, INSEAD working paper 2001/47/TM/CIMSO 18
Clift, R. / Wright, L. (2000): Relationships between Environmental Impacts and Added Value along the Supply Chain, Technological Forecasting and Social Change 65, pp281–295
Fleischmann, M. / Bloemhof-Ruwaard, J. / Dekker, R. / van der Laan, E. / van Nunen, J. / Van Wassenhove, L. N. (1997): Quantitative models for reverse logistics: A review, European Journal of Operational Research 103, pp 1–17
Guide, V. D. R. / Jayaraman, V. / Srivastava, R. / Benton, W. C. (1998): Supply Chain Management for Recoverable Manufacturing Systems, Interfaces 30(3), pp 125–42
Guide, V. D. R. (2000): Production Planning and Control for Remanufacturing: Industry Practice and Research Needs, Journal of Operations Management 18, pp 467–483
Guide, V. D. R. / Van Wassenhove, L. N. (2001): Managing Product Returns for Remanufacturing, Production and Operations Management 10(2), pp 142–154
Guide, V. D. R. / Van Wassenhove, L. N. (2002): Closed-loop supply chains, Section 40 in: Ayres, R. U. / Ayres, W. L. A. (eds.): Handbook of Industrial Ecology, Edward Elgar, UK
Keeble, J. (1998): From hackers to knackers, supplement online, The Guardian, May 21 1998
Klausner, M. / Grimm, W. M. /, Hendrickson, C. (1998): Reuse of Electric Motors in Customer Products, Journal of Industrial Ecology 2(2), pp 89–102
Klausner, M. / Hendrickson, C. T. (2000): Reverse-Logistics Strategy for Product TakeBack, Interfaces 30(3), pp 156–165
Kodak (1999): 1998 Corporate Environment Annual Report http://www.kodak.com/US/en/corp/environment
Kodak (2001): 2000 Health, Safety & Environment Annual Report http://www.kodak.com/US/en/corp/environment
Krikke, H. / Bloemhof-Ruwaard, J. / Van Wassenhove, L. N. (2001a): Design of closed loop supply chains: a production and return network for refrigerators, Erasmus Research Institute of Management (ERIM) working paper, ERS-2001-45-LIS
Krikke, H. / Pappis, C. P. / Tsoulfas, G. T. / Bloemhof-Ruwaard, J. (2001b): Design principles for closed loop supply chains: optimising economic, logistic and environmental performance, Erasmus Research Institute of Management (ERIM) working paper, ERS-2001-62-LIS
Lee, H. / Billington, C. (1995): The evolution of supply chain management models and practice at Hewlett-Packard, Interfaces 25(5), pp 42–63, Sept/Oct 1995
Mahajan, V. / Müller, E. / Bass, F. M. (1993): New-Product Diffusion Models, Chapter 8 in: Eliashberg, J. / Lilien, G. L. (eds.): Handbooks in OR and MS, Vol 5, Elsevier Science Publishers
Marx-Goméz, J. / Rautenstrauch, C. (1999): Predicting the Return os Scrapped Products through Simulation—a Case Study, Proceedings, 2nd Int. Working Seminar on Re-use, Eindhoven, The Netherlands, March 1-3, 1999
Murray, F. E. S. (1995): Xerox: Design for the Environment, Harvard Business School Case 9-749-022
OECD (1996): Extended Producer Responsibility in the OECD Area, Legal and Administrative Approaches [...], OECD Environment Monographs No 114, OCDE/GD(96)48
Savaskan, R. C. / Bhattacharya, S. / Van Wassenhove, L. N. (1999): Channel choice and coordination in a remanufacturing environment, INSEAD working paper 99/14/TM
Socolow, R. / Andrews, C. / Berkhout, F. / Thomas, V. (1994): Industrial Ecology and Global Change, Cambridge University Press, Cambridge
Swan, P. L. (1970): Durability of Consumption Goods, American Economic Review 60, pp 884–894
Tayur, S. / Ganeshan, R. / Magazine, M: (1998): Quantitative Models for Supply Chain Management, International Series in Operations Research and Management Science Vol 17, Kluwer, Holland
Thierry, M. C. / Salomon, M. / Van Nunen, J. / Van Wassenhove, L. N. (1995): Strategic Production and Operations Management Issues in Product Recovery Management, California Management Review 37(2), pp 114–135
UBA (Umweltbundesamt) (1996): Life-cycle assessment for drinks packaging systems, Texte 19/96, Umweltbundesamt, Berlin
Von Bertalanffy, L. (1976): General systems Theory: Foundations, Development, Application, 2nd edition, George Braziller, New York
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2005 Springer-Verlag Berlin Heidelberg
About this paper
Cite this paper
Geyer, R., Van Wassenhove, L.N. (2005). The Impact of Constraints in Closed-loop Supply Chains: The Case of Reusing Components in Product Manufacturing. In: Fleischmann, B., Klose, A. (eds) Distribution Logistics. Lecture Notes in Economics and Mathematical Systems, vol 544. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-17020-1_11
Download citation
DOI: https://doi.org/10.1007/978-3-642-17020-1_11
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-22100-5
Online ISBN: 978-3-642-17020-1
eBook Packages: Business and EconomicsBusiness and Management (R0)