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Examining the balance between efficiency and resilience in closed-loop supply chains
We study a hybrid system where the demand of customers can be satisfied by both manufacturing new products and remanufacturing used products. To manage the serviceable inventory, we implement a proportional order-up-to (POUT) replenishment policy. In this context, we first analyse the system efficie...
Autores principales: | , , |
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Formato: | Online Artículo Texto |
Lenguaje: | English |
Publicado: |
Springer Berlin Heidelberg
2021
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Materias: | |
Acceso en línea: | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8364417/ https://www.ncbi.nlm.nih.gov/pubmed/34413704 http://dx.doi.org/10.1007/s10100-021-00766-1 |
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author | de Arquer, María Ponte, Borja Pino, Raúl |
author_facet | de Arquer, María Ponte, Borja Pino, Raúl |
author_sort | de Arquer, María |
collection | PubMed |
description | We study a hybrid system where the demand of customers can be satisfied by both manufacturing new products and remanufacturing used products. To manage the serviceable inventory, we implement a proportional order-up-to (POUT) replenishment policy. In this context, we first analyse the system efficiency by assessing its capacity to meet customer demand in a cost-effective manner. To this end, we consider both inventory performance (i.e., the balance between inventory holding and stock-out costs) and production smoothness (by measuring the Bullwhip effect in the supply chain). Second, we investigate the system resilience to demand volatility. In particular, we explore the impact of demand shocks on the inventory and production of the closed-loop system. Interestingly, we find that tuning the POUT controller to optimise efficiency may be problematic in terms of resilience to demand shocks. In this sense, a key trade-off exists that needs to be carefully considered by supply chain managers. Linking efficiency to resilience in such supply chains thus becomes essential to strengthen the transition towards more circular economic models. All in all, our analysis, via control-theoretic and simulation techniques, provides professionals with valuable insights into how to identify the appropriate ‘formula’ for building both efficient and resilient closed-loop supply chains. |
format | Online Article Text |
id | pubmed-8364417 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2021 |
publisher | Springer Berlin Heidelberg |
record_format | MEDLINE/PubMed |
spelling | pubmed-83644172021-08-15 Examining the balance between efficiency and resilience in closed-loop supply chains de Arquer, María Ponte, Borja Pino, Raúl Cent Eur J Oper Res Article We study a hybrid system where the demand of customers can be satisfied by both manufacturing new products and remanufacturing used products. To manage the serviceable inventory, we implement a proportional order-up-to (POUT) replenishment policy. In this context, we first analyse the system efficiency by assessing its capacity to meet customer demand in a cost-effective manner. To this end, we consider both inventory performance (i.e., the balance between inventory holding and stock-out costs) and production smoothness (by measuring the Bullwhip effect in the supply chain). Second, we investigate the system resilience to demand volatility. In particular, we explore the impact of demand shocks on the inventory and production of the closed-loop system. Interestingly, we find that tuning the POUT controller to optimise efficiency may be problematic in terms of resilience to demand shocks. In this sense, a key trade-off exists that needs to be carefully considered by supply chain managers. Linking efficiency to resilience in such supply chains thus becomes essential to strengthen the transition towards more circular economic models. All in all, our analysis, via control-theoretic and simulation techniques, provides professionals with valuable insights into how to identify the appropriate ‘formula’ for building both efficient and resilient closed-loop supply chains. Springer Berlin Heidelberg 2021-08-14 2022 /pmc/articles/PMC8364417/ /pubmed/34413704 http://dx.doi.org/10.1007/s10100-021-00766-1 Text en © The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature 2021 This article is made available via the PMC Open Access Subset for unrestricted research re-use and secondary analysis in any form or by any means with acknowledgement of the original source. These permissions are granted for the duration of the World Health Organization (WHO) declaration of COVID-19 as a global pandemic. |
spellingShingle | Article de Arquer, María Ponte, Borja Pino, Raúl Examining the balance between efficiency and resilience in closed-loop supply chains |
title | Examining the balance between efficiency and resilience in closed-loop supply chains |
title_full | Examining the balance between efficiency and resilience in closed-loop supply chains |
title_fullStr | Examining the balance between efficiency and resilience in closed-loop supply chains |
title_full_unstemmed | Examining the balance between efficiency and resilience in closed-loop supply chains |
title_short | Examining the balance between efficiency and resilience in closed-loop supply chains |
title_sort | examining the balance between efficiency and resilience in closed-loop supply chains |
topic | Article |
url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8364417/ https://www.ncbi.nlm.nih.gov/pubmed/34413704 http://dx.doi.org/10.1007/s10100-021-00766-1 |
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