Abstract for: System Dynamics Model for Remanufacturing in Closed Loop Supply Chains
This paper is an application of model-based management in remanufacturing environment, under a dichotomous situation of environmental protection at lower cost of manufacturing, in order to ensure sustainability. Reverse logistics in a remanufacturing scenario can be very challenging due to the increased number of exogenous factors such as uncertainties in quantity, quality and timing of returns. The work was carried out in an electronic equipment remanufacturing industry. The focus of this paper is on identifying and selecting the variables and establishing the relationships between them to simulate the influence of recollection effort and remanufacturing time on raw material requirements, serviceable inventory, distributorsí inventory, reusable products, remanufacturing rate, environmental consciousness, remanufacturing cost, and total cost of manufacturing. Validation of the model and numerical experimentation has been carried out to authenticate the results. The results indicate that sustainability can be ensured only on long term basis and the remanufacturers should not aim at short term profits.