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Dynamics Modeling of Bullwhip Effect in Remanufacturing Closed-loop Supply Chain Based on Third-party Recycler


Article Information

Title: Dynamics Modeling of Bullwhip Effect in Remanufacturing Closed-loop Supply Chain Based on Third-party Recycler

Authors: Le Ma, Yi Chai

Journal: Information Technology Journal

HEC Recognition History
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Publisher: Asian Network for Scientific Information (ANSInet)

Country: Pakistan

Year: 2014

Volume: 13

Issue: 13

Language: English

DOI: 10.3923/itj.2014.2137.2144

Keywords: information sharingSystem DynamicsBullwhip effectremanufacturingClosed-loop supply chain

Categories

Abstract

The main work of this study is done within the bullwhip effect in remanufacturing closed-loop supply chain based on third-party recycler, uses the system dynamics and Vensim software to build a closed-loop supply chain model and analyzes the methods of reducing bullwhip effect. The closed-loop supply chain consists of supplier, manufacturer, retailer and third-party recycler, recycler is responsible for recycling products from consumer market and the products can be used for remanufacturing products and remanufacturing components. Remanufacturing products and remanufacturing components, respectively remanufactured by manufacturer and supplier. Retailer demand is satisfied by the remanufacturing products and new products and similarly, manufacturer demand is satisfied by the remanufacturing components and new components. The market demand is set to random demand and the simulation results show that the bullwhip effect in supplier is the largest, followed by the bullwhip effect in manufacturer, reverse logistics can weaken the bullwhip effect in forward logistics and the recovery rate higher, the reverse logistics weakening effect in the bullwhip effect is more obvious. Information sharing is an effective strategy to reduce the bullwhip effect. Simulation results show that the bullwhip effect under information sharing can be significantly reduced.


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