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The Impact of Constraints in Closed-loop Supply Chains: The Case of Reusing Components in Product Manufacturing

In: Distribution Logistics

Author

Listed:
  • Roland Geyer

    (University of California)

  • Luk N. Wassenhove

    (INSEAD)

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.

Suggested Citation

  • Roland Geyer & Luk N. Wassenhove, 2005. "The Impact of Constraints in Closed-loop Supply Chains: The Case of Reusing Components in Product Manufacturing," Lecture Notes in Economics and Mathematical Systems, in: Bernhard Fleischmann & Andreas Klose (ed.), Distribution Logistics, pages 203-219, Springer.
    • Handle: RePEc:spr:lnechp:978-3-642-17020-1_11
    DOI: 10.1007/978-3-642-17020-1_11
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    Cited by:

    1. Malolan Sundararaman & Mathirajan Muthu, 2020. "Component remanufacturing: a new prospective profitable business approach for the Indian automobile sector," OPSEARCH, Springer;Operational Research Society of India, vol. 57(4), pages 1244-1280, December.
    2. S. Malolan & M. Mathirajan & M. K. Tiwari, 2020. "A methodology for determining the optimal reverse flow capacities and the breakeven period for a multi products-component remanufacturing problem of an OEM," Operations Management Research, Springer, vol. 13(3), pages 233-248, December.

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