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1、TOC-based Approach on A Decision-Making Model of Recycling Reverse Logistics Abstract— Based on the concept of the theory of constraints, this paper discusses a decision-making model of recycling reverse logistics. Ta
2、king the measure of Throughput as its decision objective, we formulate the recycling reverse logistics problem into a linear programming. Meanwhile, we apply the TOC-based model to a rubber manufacturing enterprise wh
3、ich proves that it is more effective than the traditional approach in minimizing the total cost. Keywords— decision-making model ; reverse logistics ; theory of constraints; throughput I. INTRODUCTION The goal of man
4、ufacturing companies is to ship goods through their plants, distribution centers to their customers. This movement of goods most often means a profit 1to all involved. These same companies, however, do not want produ
5、cts to be returned for any reason. They do not plan for the backward movement or return of goods, known as reverse logistics, as these returns represent a substantial cost rather than a profit. Traditionally, some man
6、agers even perceive returned goods as a failure of their distribution system [1]. However, with the quick consumption of resources, sustainable development is emerging as a dominant paradigm that is likely to play an
7、important role in the design of any societal and economical policies. According to Petek et al.[2], there are three main requirements for sustainable development: resource conservation, environmental protection, and s
8、ocial as well as economic development. Reverse logistics concept of a supply chain provides the best strategy to reduce and reutilize waste and protect environment [3]. Reverse logistics is actually very involved in m
9、odern industry in the distribution activities such as product returns, source reduction/conservation, recycling, substitution, reuse, disposal, refurbishment, repair and remanufacturing [4]. Over the last decade, rev
10、erse logistics has had a significant economic impact on industry as well as society. This impact can be seen either as detrimental to a company, and thus avoided, or as a competitive advantage with potential for capt
11、uring market share. Companies that receive items back from the customer who try to hide from the significance of reverse logistics miss profit-making opportunities. On the other hand, companies that use reverse logist
12、ics as an In order to meet environmental concerns/regulations, manufacturers often attempt to recover the residual value of their used products through remanufacturing. Product remanufacturing such as transforming use
13、d items into marketable products through refurbishment, repair and upgrading can also yield substantial cost benefits[6]. Typically, a recycling reverse logistics system involves the collection of recycled products at
14、 designated regional distribution centers of retail outlets, the transfer and consolidation of recycled products at centralized return centers, the asset recovery of recycled products through repairs, refurbishing, a
15、nd remanufacturing, and the disposal of recycled products with no commercial value. Generally, the recycling reverse logistics management concerns the following issues: ? The consideration of the possibility of detac
16、hing and reprocessing, and the reliability of repairing of the recycled products; ? Sufficient quantity and required quality of recycled products; ? A market for the recycled products; ? A corresponding recycled po
17、licy on recycled products; ? Necessary information for the decision making on the operation of product recycling. However, the problem for the manufacturer is how to collect the recycling products from customers withi
18、n limited centralized return centers, transfer them to the recycling logistics system, and take the repairing strategies such as detaching, reusing, recycling, disposal, and so on, to make the maximization of their e
19、conomic benefits. The purpose of this paper is twofold: first to provide an in-depth analysis of the recycling reverse logistics system and its operation management which is correspondingly formulated as a linear pro
20、gramming based on an example; and second to demonstrate how significant improvements and successful implementation of a TOC (Theory of Constraints) approach to measure the reverse logistics system compared with the t
21、raditional cost measure. It is organized as follows: the concepts of TOC is introduced in Section 2. The recycling reverse logistics system and its model is illustrated in Section 1170 978-1-4244-2013-1/08/$25.00 ©
22、;2008 IEEEDr. Leon Gaillard1, Mr. Andreas Schroeter2 1Head of Research, Lao Institute for Renewable Energy (LIRE), Sokpaluang Road, Sokpaluang Village, Vientiane, Lao PDR, P.O. Box 8010 2Director, Sunlabob Renewable E
23、nergy Ltd, Lao-Thai Road, Watnak Village, Vientiane, Lao PDR, P.O. Box 9077 E-mail of corresponding author: andy.schroeter@sunlabob.com opportunity for enhanced business will prosper by maintaining customer support,
24、 the ultimate issue for profitability [5]. (2) All recycled products with sufficient quantities and required quality for the sustainable supply after reprocessing. (3) All detached parts or reproduced products from the
25、 recycled products have an adequate market for sale and reuse. (4) Decision making only for the distribution of recycled products of the whole reverse logistics system, not considering the detailed operations at the te
26、sting center. B. Parameters and Mathematical Formulation: i – index of reproduced products after reprocessing at testing center; j – index of recycled products; m – index of the market for reuse products; u – index of r
27、ecycled sites; t – index of testing sites; pim – acceptable price of reproduced product i for secondary market m; pj – unit price for the recycled product j; cjut – unit shipment cost from recycled site u to testing ce
28、nter t for recycled product j; citm – unit shipment cost from testing center t to market m for reproduced product i; θju – maximum supply of recycled product j at recycled site u; ηij – unit quantity transformed from r
29、ecycled product j into reproduced product i; μt – capability of testing at testing site t;Dim – demand for reproduced product i at market m; xitm – decision variable on distribution for reproduced product i from testin
30、g center t to market m; xjut – decision variable on distribution for recycled product j from take-back site u to testing center t. Based on the above assumption and illustration of all parameters and variables, we may
31、formulate the discussed recycling reverse logistics problem as follows: Max T =1 1 1 1 1 1 ( )I T M J U Tim itm jut j jut i t m j u t p x c p x= = = = = = ? + ∑∑∑ ∑∑∑(1) s.t. 1 1J Tjut ju j t x θ= = ≤ ∑ ∑(2) 1 1 1I M Ui
32、j itm jut i m ux x η= = = ≤ ∑∑ ∑(3) 1 1 min maxI Mt itm t i m x μ μ= = ≤ ≤ ∑∑(4) 1Titm im tx D= ≤ ∑(5) itm x , jut x 0 ≥(6) The objective function (1) maximizes the effective output of the recycling logistics system of
33、 an enterprise taking the throughput as the criterion to measure its capability on making profit, instead of the traditional way to minimize the cost of the recycling logistics system of an enterprise. Constraint (2)
34、 ensures the maximum supply of recycled products. Constraint (3) ensures the constraints on the reuse of the reproduced products from recycled products. Constraint (4) ensures the testing capability at testing sites.
35、Constraint (5) ensures the demand for reproduced product at market. IV. NUMERICAL CASE STUDYAutomobile industry is one of larger industries in the world. However, the used tires have become a serious problem when they
36、 are discharged and accumulated in mountains in suburb, which dramatically affect the environment. Therefore, how to reuse the rubber products like discharged tires is an important problem to deal with today. The sim
37、ple and best way is to recycle those rubber products via the process of taking back, testing (detaching and clearing), recovering (grinding) to produce into reusable rubber powder. In the case we are studying, there a
38、re two take-back sites, one testing site among a region of customers for an rubber manufacturing enterprise and there are four discharged products which could be produced into two new products (rubber powder) and tra
39、nsferred to three secondary markets after testing, classifying, detaching, recovering, reprocessing, and so on. The corresponding data are listed in Table I-VIII. TABLE I. MAXIMUM SUPPLY O FIGURE F RECYCLED PRODUCT AT
40、 TAKE-BACK SITE Take-back Sites Discharged Tires (Kilogram) 1 2 3 41 2 10 12.5 11 10.5 13 12 15 14 TABLE II. UNIT AMOUNT TRANSFORMED FROM RECYCLED PRODUCTS INTO REPRODUCTS Rubber Powders Recycled Products (K
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