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1、 Procedia CIRP 61 ( 2017 ) 257 – 262 Available online at www.sciencedirect.com2212-8271 © 2017 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license (http://cre

2、ativecommons.org/licenses/by-nc-nd/4.0/). Peer-review under responsibility of the scientific committee of the 24th CIRP Conference on Life Cycle Engineering doi: 10.1016/j.procir.2016.11.185 ScienceDirectThe 24th CIRP C

3、onference on Life Cycle Engineering Key activities, decision variables and performance indicators of reverse logistics Kuldip Singh Sangwan* aDepartment of Mechanical Engineering, Birla Institute of Technology and Scien

4、ce, Pilani 333031, India * Corresponding author. Tel.: +911596515205; fax:+91-1596-242-183.E-mail address:kss@pilani.bits-pilani.ac.in Abstract Reverse logistics is a great enabler for sustainable production and resource

5、 circulation. Its definition and scope are still evolving since early 1980s. But, collection, sorting/testing, recovery and redistribution are assumed as the basic four activities in reverse logistics. Unfortunately, m

6、any researchers assume reverse logistics by its literary meaning and plan the reverse logistic activities and take decisions based on the forward logistics or supply chain principles. There is hardly any academic resear

7、ch on the performance evaluation and decision variables for reverse logistics. This paper aims at developing the various activities, decision variables and performance indicators based on the four basic activities unde

8、r reverse logistics. The three basic questions – who will collect from the customer, what is to be done on the collected products and where to send after recovery – interlinked with the activities at collection, sorting

9、/testing and recovery centres will provide the basic activities, decision variables and key performance indicators of the reverse logistics. The location and capacity of various centres, types of networks, various reco

10、very options, various methods of collection, and seamless integration with the forward logistics are the key decision variables. The performance indicators will be developed based on the activities and actions between t

11、he activities so that the performance indicators can be associated with the reverse logistics. It is expected that this conceptual framework of activities, decision variables and performance indicators will help the ma

12、nagers working in reverse logistics to take better and informed decisions © 2017 The Authors. Published by Elsevier B.V. Peer-review under responsibility ofthe scientific committee of the 24th CIRP Conference on L

13、ife Cycle Engineering. Keywords:Reverse logistics; performance indicators; closed loop supply chain; collection methods; recovery options 1. Introduction Reverse logistics (RL) has gained increasing attention among res

14、earchers and practitioners of operation and supply chain management because of growing green concern, sustainable development, fierce global competition, future legislation, increased product return, environmental

15、ly consciousness of customers and so on. It is the process of planning, implementing and controlling backward flows of raw materials, in-process inventory, packaging and finished goods, from a manufacturing, distribu

16、tion or use point, to a point of recovery or point of proper disposal(De Brito and Dekker 2002). Design and implementation of reverse logistics is very different from forward logistics. The forward logistics include

17、series of activities in the process of converting raw materials to finished products. Whereas reverse logistics is concerned about the recovery of returned products from customer to recovery point. The major difference

18、s between forward and reverse logistics are in term of quality, transportation, cost, inventory, packaging, pricing, routing, forecasting, etc. Reverse logistics starts with the collection of returned products from

19、customers. Out of the returned products, the products which can be reused after minor repair are sent to distributor and the rest are forwarded to disassembly center to disassemble into parts. To check reusability of

20、parts, sorting and testing is done parallel to disassembly. Here the parts are divided into different categories depending on their residual quality and different end-of-life options available, like refurbishable par

21、ts, recyclable parts and disposable parts. The parts which can be refurbished are sent to refurbishing center. The parts which have no value recovery, but can be used for material recovery are sent to recycling center

22、 and the rest of parts are disposed off. Therefore, the reverse logistics © 2017 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/lic

23、enses/by-nc-nd/4.0/). Peer-review under responsibility of the scientific committee of the 24th CIRP Conference on Life Cycle Engineering259Kuldip Singh Sangwan / Procedia CIRP 61 ( 2017 ) 257 – 262 collection sys

24、tem is having the advantage of economies of scale and it does not complicate a company’s forward supply chain. However, an individual company has limited control over this type of collection system. Proprietary collec

25、tion system is particularly beneficial when the company has a strong direct relationship with its customer such as a lease- return relationship, or when there is high customer trade-in behaviour. However, transportati

26、on costs may be higher, because a company-specific system cannot take advantage of economies of scale. Jindal and Sangwan (2015) evaluated three alternate collection methods proposed by Savaskan et al (2004) using fu

27、zzy mathematics and found that the most suitable collection method depends upon the type of industry and size of collection in addition to the criteria of initial investment, value added recovery, return volume, opera

28、ting cost, degree of supply chain control, and level of customer satisfaction. The KPIs used for taking collection decisions in RL are given in table 2. Table 2. KPIs for collection decisions in RL S. No. KPIs 1. In

29、itial investment 3. Return volume 4. Operating cost 5. Supply chain control 6. Customer satisfaction 7. Environmental impact 8 Health and safety issues 2.2 Inspection and sorting 2.2.1 Centralized or decentralized

30、 The products are inspected and sorted after collection. Inspection and sorting consists of operations that determine whether a given product is reusable or not, and if yes, then to what extent. Barker and Zabinsky(20

31、08) identified that sorting/testing can either be done at centralized location or decentralized location and discussed the trade-offs considerations. Owing to efficiencies from higher volumes, a centralized site

32、 is common for a commodity-type product, such as construction sand recycling (Barros et al., 1998) or carpet recycling (Louwers et al., 1999). A centralized site is desirable for high-cost testing procedures as it min

33、imizes the cost of testing equipments and specialized labor. One drawback of centralized sorting and testing is that in this system the waste will be identified after its transportation to the testing facility theref

34、ore transportation cost will be higher. Distributed sort/test sites are often used if low cost testing procedures are available, such as for paper recycling (Bloemhof-Ruwaard et al., 1996), machine refurbishing (Thie

35、rry et al., 1995), or reusable containers and equipment (Kroon and Vrijens, 1995). In this system scrap is identified early and shipped to waste disposal center, thus reduces the transportation costs. However, testing

36、 procedures must be consistent and reliable at all centers. The network may be more complicated because scrap and usable return product are shipped in separate streams. Srivastava and Srivastava(2006) also discussed

37、that inspection/sorting may be carried out either at the point/time of collection or afterwards (i.e. at rework facilities). Inspection/separation may encompass disassembly, shredding, testing, sorting, and storage ste

38、ps (Fleischmann et al., 1997). The centralization or decentralization of inspection and sorting facilities depends upon the seven measures as given in table 3. Table 3. KPIs for inspection and sorting facilityl

39、ocation decisions in RL S. No. KPIs 1. Testing cost 2. Product reliability requirement 3. Availability of skilled labour 4. Location of waste disposal sites 5. Labour cost 6. Volume of collection 7. Waste handlin

40、g, storage and transportation cost 2.2.2 Degree of Disassembly Disassembly is a systematic method of separating a product into its constituent parts, components, subassemblies or other groupings and it is also used to

41、remove the toxic elements. It may involve dismantling, demolition or reprocessing (Sasikumar and Kannan, 2008). Most of the literature in disassembly is related to find out the degree of disassembly or to improve the

42、 efficiency of disassembly. Brennan et al. (1994) discussed the operational planning issues in assembly/disassembly environment. de Ron and Penev (1995) proposed an approach to determine the degree of disassembly at

43、a single point of time. The KPIs identified for the degree of disassembly are given in table 4. Table 4. KPIs for degree of disassembly decisions in RL S. No. KPIs 1. Value recovery 2. Disassembly cost 3. Processing

44、 cost 4. Landfill cost 5. Incineration cost 6. Environmental impact of processing 7. Environmental impact of landfill 8. Environmental impact of incineration 2.3 Product recovery Product recovery is an important ac

45、tivity of reverse logistics to manage the flow of products or parts destined for remanufacturing, repairing, or disposal and to effectively use the resources (Dowlatshahi 2000). It is generally carried out to recover

46、 hidden economical value, to meet market requirements or to meet Government regulations (Sasikumar and Kannan 2008). Sometimes resource recovery is not economically viable for the industry. In such cases, governments

47、 can resort to a wide range of policy tools to facilitate achievement of their targets. Mandatory take-back legislation, such as Germany’s packaging recycling law implemented via the well-known Green Dot program, con

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