Tombido, Linda and Louw, Louis and van Eeden, Joubert and Zailani, Suhaiza (2022) A system dynamics model for the impact of capacity limits on the Bullwhip effect (BWE) in a closed-loop system with remanufacturing. Journal of Remanufacturing, 12 (1). ISSN 2210464X, DOI https://doi.org/10.1007/s13243-021-00100-7.
Full text not available from this repository.Abstract
Every organisation has an upper limit to the number of orders or products that it can manufacture or remanufacture per unit time. In reverse logistics operations, capacity limits can lead to inefficiencies in the remanufacturing process. In this paper, comparisons were made of the Bullwhip effect (BWE) in closed-loop systems that have collection and remanufacturing capacity limits and those that do not. Collection and remanufacturing capacity limits were introduced for a system where a company had to collect ‘enough’ products before remanufacturing can begin. This introduced collection backlogs, remanufacturing backlogs and remanufacturing downtimes to the closed loop supply chain (CLSC). By adopting a systems dynamics approach, the research performed ‘what-if’ analyses of the closed-loop system under different levels of the factors under investigation. Two case studies were investigated: one remanufacturing electric vehicle batteries (low demand, slow moving item) and the other remanufacturing kitchen appliances (high demand, fast moving item). Firstly, introducing collection and remanufacturing capacity limits in the reverse chain increased the BWE to a level higher than the reverse chain without any capacity limits, but not to the level of the forward chain without any product returns. Secondly, introducing collection and remanufacturing capacity limits for a closed-loop system where a company had to collect ‘enough’ products before remanufacturing begins had different impacts depending on the product demand size and speed. The presence of external returns by other parties not regulated by an organisation had an impact of lowering the BWE in the closed-loop system and it also impacted how the other factors under investigation affected the Bullwhip effect. These findings were used to provide managerial insights for organisations venturing into reverse logistics. © 2021, The Author(s), under exclusive licence to Springer Nature B.V.
| Item Type: | Article |
|---|---|
| Funders: | UNSPECIFIED |
| Additional Information: | Cited by: 6 |
| Uncontrolled Keywords: | Bullwhip effect; Capacity limits; Closed-loop supply chains (CLSCs); Reverse logistics |
| Subjects: | H Social Sciences > H Social Sciences (General) H Social Sciences > HB Economic Theory H Social Sciences > HC Economic History and Conditions |
| Divisions: | Faculty of Business and Economics Faculty of Business and Economics > Department of Decision Science |
| Depositing User: | Ms. Juhaida Abd Rahim |
| Date Deposited: | 14 Nov 2024 04:30 |
| Last Modified: | 14 Nov 2024 04:30 |
| URI: | http://eprints.um.edu.my/id/eprint/43357 |
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