The Supply Chain Design And The Form Of Recovery

The second metric that is beneficial to Riordan is the Efficiency Metric. This metric “is a ratio of the actual output of a process relative to some standard” (Jacobs & Chase, 2011 pg. 117). This metric is beneficial in determining if

In reverse logistics, the design, control, and operation of a recovery value system will reflect the whole life cycle of a product. This is the concept of closed-loop supply chains, in which zero-waste is achieved in the “forward flows of materials (from suppliers to end customers) and the reverse flow of products (post consumption) back to the manufacturing or distribution supply chains” (Book p.151-152). Reverse logistics supports closed-loop supply chains and coordinating the chains to achieve (or maintain) competitive advantage. A fragmented chain, where each member is only focused on its own processes, is considered a key Supply Chain Management problem. It is not wise for Sandvik to fragment, or decouple the forward and reverse supply chains.

Reverse logistics constitutes the value recovery process for reparable spares. It is important because theoretically is has considerable impact on the supply chain as it is the feedback loop. The reverse stage starts from the military units, to the maintenance depots, and then back to the forward supply chain to the units. The responsiveness of the reverse pipeline then becomes crucial to support sustained operations when higher-than-expected failure rates in equipment occur, resulting in temporary spikes or sustained surges in demand. Recent data analysis indicates that the ratio of issues-to-returns across deployed units is highly variable, ranging between 40 percent and almost 100

Product recovery operations in reverse supply chains are already faced with the challenging problem of adapting their capacity in an effort to increase supply chain profitability related to recovery activities, while dealing with the confines of continuously evolving EPR legislation (Vlachos et al, 2007). Capacity planning is thus becoming even more complex and critical for reverse supply chains. Therefore, a company needs an efficient capacity planning measure to improve economic and environmental performance of its reverse supply chains. However, capacity planning of reverse supply chains is an extremely complex issue, since each time a company considers expanding or contracting collection, sorting and reprocessing capacity, it must consider a myriad of possibilities. Even after the decisions to expand or contract capacity is given, it remains to resolve key issues such as when, where and how much, and all these under the two main competing objectives in capacity planning which are 1) maximization of market share and 2) maximization of capacity utilization. Furthermore, specific external factors affecting capacity stability have to be incorporated into capacity planning. Such factors include uncertainties in product usage and residence time, quantity, timing and quality of end-of-life products, EPR obligations and penalties, and so on (Georgiadis et al., 2006).

In spite of all this model disadvantages, it has some advantages as well. On one hand, the existence of inventories allows an easier response to fluctuations in demand. Thus, when for some reason, there is no replenishment the demand is still satisfied. On the other hand, comparing to the Transit Point, this system has lower transportation costs (Exhibit 6).

 Planning Decisions include  Which markets will be supplied from which locations  Planned buildup of inventories  Subcontracting, backup locations  Inventory policies  Timing and size of market promotions

OPERATIONS AND SUPPLY CHAIN MANAGEMENT Vol. 2, No. 3, September 2009, pp. 167-171 ISSN 1979-3561|EISSN 1979-3871

Efficient management of the supply chain is becoming more and more critical in today’s economy. In a time of shortening product life cycles and competitive markets, it is necessary to consider the complete scope of supply chain management, from supplier of raw materials, through factories and warehouses, to demand in a store for finished product.

If want to understand the implications of process management by implementing a successful reverse logistics system within the supply chain. We need to understand what drives inventory through the areas of distribution, production and Post-Goods-Issuance (PGI). Its success is certainly a difficult undertaking, and determining when to address the Returned Materials Acquisitions (RMA). Looking at what was just fulfilled to a customer now needs to occur in reverse order to bring that item back, should the customer return it. In addition, the relationship between customer retention and reverse logistics has become a key component within the Service Lifecycle Management (SLM) a strategy that helps a company retain its customers by coordinating even more services together to help

Reverse logistics is basically defined as the processes of receiving defective products or unwanted materials in order to recapture or regain value or ensure proper disposal of the products or materials. Therefore, the operations of reverse logistics are largely dependent on reversing the supply chain management processes in order for businesses to correctly determine and classify returned goods for disposal. However, reverse logistics processes entail more than merely

The individuals in charge of outlining those supply chains and creating and actualizing the most fitting system are subsequently confronted with a variety of variables to be

In order to minimize the influence of these supply uncertainties, the supply chain managers should recognize their origins, the desired market size, examined possible outcomes and the consequence of their impact. Shockingly numerous supply chains will not record and track these elements that may effects into under-stock or over-stock, underestimation of the investments and lead-time in the inappropriate resources for productivity enhancement. Besides these factors supply chain management includes replenishment planning, inventory planning, warehouse management, production scheduling, logistics and transportation operation in the auto industry.

The Production Planning and Inventory Control Process envelop the assembling and stockpiling sub-forms, and their interface(s). All the more particularly, generation arranging depicts the outline and administration of the whole assembling procedure (counting raw material booking and securing, assembling procedure plan and planning, and material taking care of configuration and control). Stock control portrays the outline and administration of the stockpiling approaches and methodology for crude materials, work-in-procedure inventories, and normally, last items. The Distribution and Logistics Process decides how items are recovered and transported from the stockroom to retailers. These items may be transported to retailers specifically, or

Fiksel (1996) contends that associations can possibly get to be eco-accommodating towards item re-fabricating. Substantial businesses that have complex supply chains ought to think about over the profits of converse logistics. Beamon (1999) recognized the improvement of Iso14000. This was presented as an aftereffect of the Rio Summit on The earth in 1992. There are developing weight bunches that calls for firms to support "greening" in the inventory network. There are a numerous writings that identify with Green Configuration. Johnson (1998) inspected the part of buying in reverse logistics framework and configuration. In this study, twelve American assembling plants took an interest and it gives the idea that every one of them was agreeable to switch logistics without government enactment having been forced. Taleb and Gupta (1997) made connected calculations to outline an item recuperation framework. This study demonstrates that 'center calculations ' and 'allotment calculations ' are the booking frameworks that would help lessen waste.

Opening new production sites or distribution centers closer to dispersed customers is one way to reduce the lead time and transportation costs. However, the acquisition of such facilities in the oil and petrochemical industries, if feasible, is typically very costly and often results in higher inventory and operating costs (Hebert, 2004). Red Cavaney, president of the American Petroleum Institute, said “Most companies are unlikely to undertake the significant investment needed to even begin the process” (Hebert, 2004) These factors are pushing oil and petrochemicals companies to either absorb the increase in costs or pass the costs on to customers who are already facing increasing prices. Companies therefore have recognized that improved supply chain efficiencies represent a huge area for cost savings, specifically in the logistics area; they are estimated to be an average between 10 and 20 percent of revenues (Hamilton, 2003). Also, companies believe that the supply chain in which they participate as customers and suppliers is what creates competition rather than individual companies (Whitfield, 2004; Lange, 2004; Morton, 2003; Bianchi, 2003; Collins, 1999; Coia, 1999). Despite the importance of the petroleum industry in our daily life and the operational challenges it involves, unfortunately the topic has received very little attention in operations and supply chain management literature. The objective of this paper,