Simulation Study of an Integrated Reverse Logistics in Fuzzy Environment
Along with forward supply chain organization needs to consider the impact of reverse logistics due to its economic advantage, social awareness and strict legislations. In this work, we develop a system dynamics framework to analyze the long-term behavior of a multi-echelon integrated forward-reverse supply chain with fuzzy demand, satisfaction rate and collection rate. The uncertainty associated with satisfaction of customers and collection of used product has been quantified using fuzzy possibility measures. In the proposed model, it is assumed that the customer can exchange their old used product with a fresh new product in a primary market or a relatively better refurbished product in a secondary market at a discounted price. From the simulation study, it is observed that the inclusion of product exchange policy reduce the order variation and bullwhip effect at both retailer and distributor level. Finally, sensitivity analysis is performed to examine the impact of various parameters, namely; satisfaction rate, collection percentage, refurbishing percentage, inventory cover time and inventory adjustment time on recovery process and bullwhip effect.
KeywordsBullwhip effect Fuzzy parameters Possibility measures Reverse supply chain Simulation System dynamics
This work was supported partly by IRCC, IIT Bombay under Grant 08IRCC037.
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