A strategic methodological optimisation framework for the design of a reverse logistics network with forward supply channel synergies

Abstract

Today, an ever increasing number of enterprises undertake significant steps in order to maximise the financial value recovered from End-of-Life (EOL) products, while ensuring sustainable development. In this context, this work deals with the optimal configuration of efficient reverse logistics networks. More specifically, we first present a five-phased strategic methodological model for the development of reverse supply chains. Then, we provide a new mathematical programming model for enterprises that have already structured their forward supply chain and aim at being involved in EOL products' recovery processes. An application of the optimisation model is demonstrated, while obtained managerial insights are discussed.Reference to this paper should be made as follows: Xanthopoulos, A. and Iakovou, E. (2010) 'A strategic methodological optimisation framework for the design of a reverse logistics network with forward supply channel synergies', Int.

Internal supply-chain competition in remanufacturing: operations strategies, performance and environmental effects

“…Preventing a competitor from achieving the same or higher, resource stock levels, is feasible by either accelerating the flow of one's own resources, or slowing down (if possible) those of the competitor/imitator, or both. In this context, the management of the above mentioned tangible and intangible resource stocks associated with the operations performance objectives of both competitors, can be accomplished by regulating their associated resource flows through decision making in four broad operations strategy decision areas (Slack and Lewis, 2008;Lewis et al, 2013): i) capacity management decisions for regulating the capacity stock levels for the production of OEM's new products and for recycling by the OEMs, as well as for remanufacturing by the retailers, ii) supply chain and logistics management decisions which concern the flow of products (new and used) in the supply chain, and the way capacity is being used (Sheriff, et al, 2012;Xanthopoulos and Iakovou, 2010), iii) organisational learning and operational improvement decisions which concern the rate of improvement of manufacturing, remanufacturing, and recycling operations and consequently, the rate of accumulation of the production know-how resource stock, and iv) decisions on the rate of acquisition and use of product and process technology (Hazen, 2011). However, since both competitors have equal access to product and process technology factor markets, and products are not technologically complex, technology cannot be considered as a distinctive strategic decision area which contributes significantly to any operations strategic objective.…”

The valorisation of dead stock - there is life in the old dog yet

“…Reverse logistics considers secondary markets for used items, sometimes with the effect of fetching higher prices as the primary product (Stock et al, 2002). Typically, it is the maximisation of recovery values of product returns and end of life products that is considered (Srivastava, 2008;Tan and Kumar, 2008;Ilgin and Gupta, 2010;Xanthopoulos and Iakovu, 2010). Dead stock is, however, comprised of original, unused items (Lin and Wang, 2011).…”