System Dynamics Modeling and Simulation of Two-Stage Remanufacturing Reverse Supply Chain

Abstract

Remanufacturing is a processing for recycling the availability value of used product; it contains recovery, disassembly, cleaning, overhaul, repair, and replacement operations, and product recovery operations in remanufacturing supply chains face continually changing product demand. In this paper, according to the principle and procedure of system dynamics modeling, system dynamic model of two-stage remanufacturing reverse supply chain including a reproducer and recycler is established. The simulation of model can be used to analyze the remanufacturing supply chain system from the macroscopic qualitative view and microcosmic quantitative view, and to improve the structure and get parameter optimization. As for the purpose of reducing the operation cost and improving the gross profit, this paper analyzes the influence of different factors to the cost and total profit of remanufacturing reverse supply chain through dynamic simulation. Through analyzing and controlling the change of the impact factors, this paper presents the remanufacturing supply chain operation mode with higher benefits.