Abstract for: From Waste to Value - A System Dynamics Model for Strategic Decision Making in Closed-Loop Supply Chains
The purpose of this paper is to develop a system dynamics model which allows an Original Equipment Manufacturer in the electronics industry to test different value recovery strategies in a Closed-Loop Supply Chain setting. Due to shortening product lifecycles and legislative regulations, companies face the challenge of handling products at their end-of-use or end-of-life. Accordingly, effective strategies for the collection and value recovery of these products have to be developed. The model presented in this paper is the preliminary result of an ongoing research project. First simulation experiments conducted on the current model structure on the one hand show the economic potential of an engagement in value recovery activities and on the other hand highlight the high complexity and connectivity inherited with various value recovery processes.