A System Dynamics Approach for Capacity Planning and Price Adjustment in a Closed-Loop Supply Chain

Author(s):  
Mir Saman Pishvaee ◽  
Hamed Shakouri G.
2017 ◽  
Vol 35 (4) ◽  
pp. 379-386 ◽  
Author(s):  
Shidi Miao ◽  
Tengfei Wang ◽  
Deyun Chen

With the rapid development of the electronic information industry in recent years, electronic products are being updated faster and faster, and e-waste recycling has become a common problem around the world. Firstly, this article contrasts recycling at home and abroad using the predicament of Midea Corp. Based on a closed-loop supply chain with the system dynamics method, a model is constructed and simulated. In this model, the collection point coverage rate is introduced to adjust the e-waste recycling rate dynamically. Aiming at a recycling mode dominated by the third party of the closed-loop supply chain, the article mainly discusses the impact on the sales rate and market share of the recycling model by third-party enterprises and compares the total revenue of all supply chains. Simulation results show that the model is more effective and optimal than the traditional recycling model.


2018 ◽  
Vol 10 (3) ◽  
pp. 668 ◽  
Author(s):  
Rui Zhao ◽  
Yiyun Liu ◽  
Zhenyan Zhang ◽  
Sidai Guo ◽  
Ming-Lang Tseng ◽  
...  

2015 ◽  
Vol 2015 ◽  
pp. 1-11 ◽  
Author(s):  
Xi gang Yuan ◽  
Xiao qing Zhang

With system dynamics, we establish three-closed-loop supply chain distribution network system model which consists of supplier, manufacturer, two retailers, and products (parts) recycler. We proposed that recycler make reflect for the government policy by adjusting the recycling ratio and recycling delay. We use vensim software to simulate this model and investigate how the products (parts) recyclers behavior influences the loop supply chain distribution system. The result shows that (1) when recyclers respond positively to government policies, recycling will increase the proportion of recyclers. When recyclers respond negatively to government policy making, recycling will reduce the proportion of recyclers. (2) When the recovery percentage of recyclers improves, manufacturers, Retailer 1, and Retailer 2 quantity fluctuations will reduce and the bullwhip effect will diminish. (3) When the proportion of recycled parts recyclers is lowered, manufacturers, Retailer 1, and Retailer 2 inventory fluctuation will increase and the bullwhip effect will be enhanced. (4) When recyclers recycling product delays increased, volatility manufacturers order quantity will rise, but there is little change in the amount of fluctuation of orders of the two retailers. (5) When recycling parts recyclers delay increases, fluctuations in the supplier order quantity will rise, but there is little change in the amount of fluctuation of orders of the two retailers.


2016 ◽  
Vol 2016 ◽  
pp. 1-10 ◽  
Author(s):  
Xiao-qing Zhang ◽  
Xi-gang Yuan

With the technological developments and rapid changes in demand pattern, diverse varieties of electronic products are entering into the market with reduced lifecycle which leads to the environmental problems. The awareness of electronic products take-back and recovery has been increasing in electronic products supply chains. In this paper, we build a system dynamics model for electronic products closed-loop supply chain distribution network with the old-for-new policy and three electronic products recovery ways, namely, electronic products remanufacturing, electronic component reuse and remanufacturing, and electronic raw material recovery. In the simulation study, we investigate the significance of various factors including the old-for-new policy, collection and remanufacturing, their interactions and the type of their impact on bullwhip, and profitability through sensitivity analysis. Our results instruct that the old-for-new policy and three electronic products recovery ways can reduce the bullwhip effect in the retailers and the distributors and increases the profitability in the closed-loop supply chain distribution network.


2020 ◽  
Vol 007 (02) ◽  
pp. 212-227
Author(s):  
Adhita Sri Prabakusuma ◽  
◽  
Ita Apriani ◽  
Budi Wardono ◽  
Endy Suwondo ◽  
...  

Dry land-based catfish fishery is one of the promising rural aquabusiness in Gunungkidul, Yogyakarta. There are several problems in this business, for example, supply-demand balancing, calculation accuracy of production capacity, and equitable profit distribution to each stakeholder. This research aimed to design a closed-loop supply chain of dry-land catfish industrial-fishery model by employing the system dynamics approach. Powesim Studio 7 coupled MINITAB 14 was applied to measure the robustness of the supply chain management system, to predict optimum production capacity, and to balance profit distribution. A financial analysis was also performed to determine business feasibility. Three scenarios of price were created by considering the predicted trend of catfish consumption and formulated three alternative prices by appraising the juvenile fish production, aquaculture practices, local feedstock manufactured by farmers, and fish-by products distributed by small-enterprises. Those consideration units were constructed of four observed models. The highest profit to stakeholder was obtained by scenario III that was directed to increase the juvenile fish price to Rp 240/fish, consumption-sized fish at the price of Rp 18,000/kg, fish-by product at the price of Rp 150,000/kg, and local feed at the price of Rp 9,000/kg. According to financial analysis, the four subsystems in dry land-based catfish aquabusiness were all feasible by BCR>1; PP was 5-9 years, NPV>0, PI>1, and IRR>15%/year. The implementation of the system required synergetic action among policymakers, farmer cooperative, and local innovation centers.


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