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A system dynamics model for the impact of capacity limits on the Bullwhip effect (BWE) in a closed-loop system with remanufacturing

Every organisation has an upper limit to the number of orders or products that it can manufacture or remanufacture per unit time. In reverse logistics operations, capacity limits can lead to inefficiencies in the remanufacturing process. In this paper, comparisons were made of the Bullwhip effect (B...

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Main Authors: Tombido, Linda, Louw, Louis, van Eeden, Joubert, Zailani, Suhaiza
Format: Article
Published: Springer Nature 2022
Subjects:
H Social Sciences (General)
HB Economic Theory
HC Economic History and Conditions
Online Access:http://eprints.um.edu.my/43357/
https://www.scopus.com/inward/record.uri?eid=2-s2.0-85103377621&doi=10.1007%2fs13243-021-00100-7&partnerID=40&md5=39e850eaa5556f2b56a4e58d3231d159
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spelling my.um.eprints.433572024-11-14T04:30:13Z http://eprints.um.edu.my/43357/ A system dynamics model for the impact of capacity limits on the Bullwhip effect (BWE) in a closed-loop system with remanufacturing Tombido, Linda Louw, Louis van Eeden, Joubert Zailani, Suhaiza H Social Sciences (General) HB Economic Theory HC Economic History and Conditions Every organisation has an upper limit to the number of orders or products that it can manufacture or remanufacture per unit time. In reverse logistics operations, capacity limits can lead to inefficiencies in the remanufacturing process. In this paper, comparisons were made of the Bullwhip effect (BWE) in closed-loop systems that have collection and remanufacturing capacity limits and those that do not. Collection and remanufacturing capacity limits were introduced for a system where a company had to collect ‘enough’ products before remanufacturing can begin. This introduced collection backlogs, remanufacturing backlogs and remanufacturing downtimes to the closed loop supply chain (CLSC). By adopting a systems dynamics approach, the research performed ‘what-if’ analyses of the closed-loop system under different levels of the factors under investigation. Two case studies were investigated: one remanufacturing electric vehicle batteries (low demand, slow moving item) and the other remanufacturing kitchen appliances (high demand, fast moving item). Firstly, introducing collection and remanufacturing capacity limits in the reverse chain increased the BWE to a level higher than the reverse chain without any capacity limits, but not to the level of the forward chain without any product returns. Secondly, introducing collection and remanufacturing capacity limits for a closed-loop system where a company had to collect ‘enough’ products before remanufacturing begins had different impacts depending on the product demand size and speed. The presence of external returns by other parties not regulated by an organisation had an impact of lowering the BWE in the closed-loop system and it also impacted how the other factors under investigation affected the Bullwhip effect. These findings were used to provide managerial insights for organisations venturing into reverse logistics. © 2021, The Author(s), under exclusive licence to Springer Nature B.V. Springer Nature 2022 Article PeerReviewed Tombido, Linda and Louw, Louis and van Eeden, Joubert and Zailani, Suhaiza (2022) A system dynamics model for the impact of capacity limits on the Bullwhip effect (BWE) in a closed-loop system with remanufacturing. Journal of Remanufacturing, 12 (1). ISSN 2210464X, DOI https://doi.org/10.1007/s13243-021-00100-7 <https://doi.org/10.1007/s13243-021-00100-7>. https://www.scopus.com/inward/record.uri?eid=2-s2.0-85103377621&doi=10.1007%2fs13243-021-00100-7&partnerID=40&md5=39e850eaa5556f2b56a4e58d3231d159 10.1007/s13243-021-00100-7
institution Universiti Malaya
building UM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Malaya
content_source UM Research Repository
url_provider http://eprints.um.edu.my/
topic H Social Sciences (General)
HB Economic Theory
HC Economic History and Conditions
spellingShingle H Social Sciences (General)
HB Economic Theory
HC Economic History and Conditions
Tombido, Linda
Louw, Louis
van Eeden, Joubert
Zailani, Suhaiza
A system dynamics model for the impact of capacity limits on the Bullwhip effect (BWE) in a closed-loop system with remanufacturing
description Every organisation has an upper limit to the number of orders or products that it can manufacture or remanufacture per unit time. In reverse logistics operations, capacity limits can lead to inefficiencies in the remanufacturing process. In this paper, comparisons were made of the Bullwhip effect (BWE) in closed-loop systems that have collection and remanufacturing capacity limits and those that do not. Collection and remanufacturing capacity limits were introduced for a system where a company had to collect ‘enough’ products before remanufacturing can begin. This introduced collection backlogs, remanufacturing backlogs and remanufacturing downtimes to the closed loop supply chain (CLSC). By adopting a systems dynamics approach, the research performed ‘what-if’ analyses of the closed-loop system under different levels of the factors under investigation. Two case studies were investigated: one remanufacturing electric vehicle batteries (low demand, slow moving item) and the other remanufacturing kitchen appliances (high demand, fast moving item). Firstly, introducing collection and remanufacturing capacity limits in the reverse chain increased the BWE to a level higher than the reverse chain without any capacity limits, but not to the level of the forward chain without any product returns. Secondly, introducing collection and remanufacturing capacity limits for a closed-loop system where a company had to collect ‘enough’ products before remanufacturing begins had different impacts depending on the product demand size and speed. The presence of external returns by other parties not regulated by an organisation had an impact of lowering the BWE in the closed-loop system and it also impacted how the other factors under investigation affected the Bullwhip effect. These findings were used to provide managerial insights for organisations venturing into reverse logistics. © 2021, The Author(s), under exclusive licence to Springer Nature B.V.
format Article
author Tombido, Linda
Louw, Louis
van Eeden, Joubert
Zailani, Suhaiza
author_facet Tombido, Linda
Louw, Louis
van Eeden, Joubert
Zailani, Suhaiza
author_sort Tombido, Linda
title A system dynamics model for the impact of capacity limits on the Bullwhip effect (BWE) in a closed-loop system with remanufacturing
title_short A system dynamics model for the impact of capacity limits on the Bullwhip effect (BWE) in a closed-loop system with remanufacturing
title_full A system dynamics model for the impact of capacity limits on the Bullwhip effect (BWE) in a closed-loop system with remanufacturing
title_fullStr A system dynamics model for the impact of capacity limits on the Bullwhip effect (BWE) in a closed-loop system with remanufacturing
title_full_unstemmed A system dynamics model for the impact of capacity limits on the Bullwhip effect (BWE) in a closed-loop system with remanufacturing
title_sort system dynamics model for the impact of capacity limits on the bullwhip effect (bwe) in a closed-loop system with remanufacturing
publisher Springer Nature
publishDate 2022
url http://eprints.um.edu.my/43357/
https://www.scopus.com/inward/record.uri?eid=2-s2.0-85103377621&doi=10.1007%2fs13243-021-00100-7&partnerID=40&md5=39e850eaa5556f2b56a4e58d3231d159
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score 13.223943

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