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Open Access Research

Performance analysis of the closed loop supply chain

Farazee MA Asif1*, Carmine Bianchi2, Amir Rashid1 and Cornel Mihai Nicolescu1

Author Affiliations

1 Department of Production Engineering, KTH Royal Institute of Technology, Stockholm, Sweden

2 Department of Political Sciences, University of Palermo, Palermo, Italy

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Journal of Remanufacturing 2012, 2:4  doi:10.1186/2210-4690-2-4

Published: 6 November 2012

Abstract

Purpose

The question of resource scarcity and emerging pressure of environmental legislations has brought a new challenge for the manufacturing industry. On the one hand, there is a huge population that demands a large quantity of commodities; on the other hand, these demands have to be met by minimum resources and pollution. Resource conservative manufacturing (ResCoM) is a proposed holistic concept to manage these challenges. The successful implementation of this concept requires cross functional collaboration among relevant fields, and among them, closed loop supply chain is an essential domain. The paper aims to highlight some misconceptions concerning the closed loop supply chain, to discuss different challenges, and in addition, to show how the proposed concept deals with those challenges through analysis of key performance indicators (KPI).

Methods

The work presented in this paper is mainly based on the literature review. The analysis of performance of the closed loop supply chain is done using system dynamics, and the Stella software has been used to do the simulation.

Findings

The results of the simulation depict that in ResCoM; the performance of the closed loop supply chain is much enhanced in terms of supply, demand, and other uncertainties involved. The results may particularly be interesting for industries involved in remanufacturing, researchers in the field of closed loop supply chain, and other relevant areas.

Originality

The paper presented a novel research concept called ResCoM which is supported by system dynamics models of the closed loop supply chain to demonstrate the behavior of KPI in the closed loop supply chain.

Keywords:
Closed loop supply chain; Key performance indicator; Logistics; Operations management; Production management; Performance measurement; Resource conservative manufacturing; Supply chain management; System dynamics; Remanufacturing