Abstract
Product recovery is an emerging business area which is attractive from both an economic and an environmental point of view. It is investigated to which extent profit orientation in product recovery management will or will not stimulate an environmentally conscious behaviour. This study refers to a product recovery system where a manufacturer of original products is also engaged in remanufacturing used products taken back from its customers. For this type of a closed loop supply chain, which additionally is characterized by uncertainty of demands and product returns, the optimal recovery and production policy is evaluated. By a numerical analysis, it is shown how cost-efficient decision-making affects the product recovery behaviour. In a sensitivity analysis, it is evaluated how various problem determinants influence the preference for product recovery under conditions of uncertainty. Exploiting the respective insights, it is discussed which measures can be taken to harmonize economical and environmental-driven behaviour in product recovery management.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Similar content being viewed by others
References
Fandel, G. (1988). Optimal planning in joint production. In: Essays on Production Theory and Planning, Fandel, G., Dyckhoff, H., Reese, J. (eds.), Springer, Berlin, pp. 130–148.
Fleischmann, M., Bloemhof-Ruwaard, J.M., Laan, van der E., Nunen, van J.A.E.E., Wassenhove, van L.N. (1997). Quantitative models for reverse logistics: a review. In: European Journal of Operational Research, 103: pp. 1–17.
Guide Jr., V.D.R. (2000). Production planning and control for remanufacturing: industry practice and research needs. In: Journal of Operations Management, 18: pp. 467–483.
Gungor, A., Gupta, S.M. (1999). Issues in environmentally conscious manufacturing and product recovery: a survey. In: Computers and Industrial Engineering, 36: pp. 811–853.
Hillier, F.S, Lieberman, G.J. (2001). Introduction to Operations Research. 7th ed., McGraw-Hill, New York.
Inderfurth, K. (1996). Modelling period review control for a stochastic product recovery problem with remanufacturing and procurement lead-times. In: Preprint 2 /1996, Faculty of Economics and Management, University of Magdeburg, Germany.
Inderfurth, K. (1997). Simple optimal replenishment and disposal policies for a product recovery system with lead-times. In: OR Spektrum, 19: pp. 111–122.
Laan, van der E., Salomon, M., Dekker, R., Wassenhove, van L.N. (1999). Inventory control in hybrid systems with remanufacturing. In: Management Science 45: pp. 733–747.
Thierry, M.C. (1997). An analysis of the impact of product recovery management on manu- facturing companies. PhD-Thesis, Erasmus University Rotterdam, The Netherlands.
Thierry, M.C., Salomon, M., Nunen, van J.A.E.E., Wassenhove, van L.N. (1995). Strategic issues in product recovery management. In: California Management Review 37: pp. 114–135.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2004 Springer-Verlag Berlin Heidelberg
About this chapter
Cite this chapter
Inderfurth, K. (2004). Product Recovery Behaviour in a Closed Loop Supply Chain. In: Dyckhoff, H., Lackes, R., Reese, J. (eds) Supply Chain Management and Reverse Logistics. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-24815-6_5
Download citation
DOI: https://doi.org/10.1007/978-3-540-24815-6_5
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-07346-5
Online ISBN: 978-3-540-24815-6
eBook Packages: Springer Book Archive