Inventory Control And Decision Of Remanufacture Closed-Loop Supply Chain

Closed-Loop Supply Chain (CLSC) was facilitated to come into being by the circumstance deterioration, law force and benefits driving. With the increase of Waste Electrical and Electronic Equipments(WEEE), the environment is being damaged worse and worse by all these wastes, to implement the WEEE remanufacturing closed-loop supply chain operation is not only the effective way to solve environment pollution issue, but also the important approach to improve enterprises'economic benefit. The core is remanufacturing closed-loop supply chain double source supply and multi-echelon inventory control, so the research based on the remanufacturing closed-loop supply chain inventory is becoming the critical one for the international and domestic experts, and arouse the higher attention from academe and enterprise.To study WEEE remanufacturing inventory from the angle of view of the closed-loop supply chain, the below issues need be focused on:Firstly, the return network location and inventory decision-making issue of collectors. Considering the convenience, the Collection Spots should be close to resident living area, but the too many spots will result in the higher investment cost, on the contrary, if the number of spots is smaller, some sites will be far from living area, then impact the collectors' inventory. Secondly, manufacturer's double source inventory issue. Because both the recyclable old spare parts and new spare parts are available, it will be different from the forward supply chain inventory, the original single source supply will become the double source supply including normal suppliers and collector suppliers. Thirdly, the multi-echelon inventory management issue of remanufacturing closed-loop supply chain. The multi-echelon inventory of remanufacturing closed-loop supply chain covers 2 parts, it's forward flow multi-echelon inventory and reverse flow multi-echelon inventory, so this kind of inventory will be more complex than the forward supply chain's inventory, and require more for information sharing between every enterprise in whole supply chain. How to establish the information sharing platform, and how to take advantage of the shared information between up-stream enterprises and down-stream enterprises, then Modeling and analysing closed-loop supply chain multi-echelon inventory to solve effectively the issue of multilevel inventory, all these will be the key points and difficult points for remanufacturing closed-loop supply chain study.To focus on the above issues, by taking the supply chain theory method, network location and optimization method, inventory management method and demonstration study combined with computer simulation research method, the models are established including callback network location and collector inventory joint decision-making model, manufacturer spare parts double source inventory control model and remanufacturing closed-loop supply chain multi-echelon inventory simulation model. Remanufacturing closed-loop supply chain inventory management comprehensive theory system is formed and provide the support for enterprises to set up remanufacturing closed-loop supply chain inventory strategy, the related conclusion have the instructive and valuable use to improve the overall competition of remanufacturing closed-loop supply chain.The main work and conclusion are as below:1. To suggest establishing WEEE remanufacturing supply chain by summarizing closed-loop supply chain theory, remanufacturing engineering theory and inventory control theory, combining the issues during WEEE callback process. The required condition if the enterprise apply remanufacturing closed-loop supply chain is clarified. Further the core issue of inventory study foucs on collectors'inventory, manufacturers'spare parts double source inventory and remanufacturing closed-loop supply chain multi-echelon inventory.2. To suggest establishing WEEE callback closed-loop supply chain 4 level reverse logistics network in Shanghai based on WEEE total volume estimation and coverage status, including certain WEEE Source spots (Resident Living Area), the primary collection stations, the centralized collection centers and remanufacturing factories. The model of callback network location and collectors inventory joint decision-making is established by analyzing the main reason which is callback network location will impact the collectors inventory management. The model minimize callback network operation cost and negative impact to the public, and have the analysis of the maximum distance between collection station and residents living area impact to collection ratio, also have the analysis of collection ratio sensitivity.3. The core of remanufacturing closed-loop supply chain is that the manufacturer takes effectively advantage of the recyclable spare parts, but the manufacturer must face the spare parts double source, the uncertainty of WEEE and recyclable spare parts availability increase the difficulty of spare part inventory control. How to choose the supply source and effectively control spare parts inventory will be the one of the important item for this paper. To analyze generated spare parts in reverse logistics impacting to manufacturers'spare parts inventory, then establish double source spare parts inventory control model. At the same time, to analyze the impact of increasing collection ratio to spare parts ordering strategy and WEEE rehandling strategy with the enhancing of resident environment protection sense.4. In remanufacturing closed-loop supply chain, the reused spare parts's quality can match the level of new spare parts, so no direct impact to market requirement and production requirement.This paper is focusing on the impact of reverse logistics WEEE to manufacturers'inventory and its upstream. To establish multil-echelon inventory simulation model based on reverse logistics information sharing, the conclusion is that the operation cost of the manufacturer will drop down with callback effort increase, the suppliers can manage their multi-echelon inventory well. By information sharing and comprehensive cooperation between upstream enterprises and downstream enterprises, make the whole supply chain's inventory under the effective control.5. From the angle of view of inventory control, how to establish information sharing closed-loop supply chain system is the premise to ensure the effective operation of remanufacturing closed-loop supply chain, meanwhile, to push the reasonable inventory flow between supply chain enterprises make great sense to enterprises'sustainable development. The Decision Support System (DSS) based on Service Oriented Architecture(SOA) is proposed by analyzing the information management status and information requirement of every involved main body into remanufacturing closed-loop supply chain. Further to demonstrate the rental operation approach and multi-tenant data control mechanism.The creation of this paper is shown as below:1. The joint decision-making model for callback network location and collectors inventory is established. In this model, the synthesized application of forward supply chain nodes and reverse supply chain nodes is considered, also a real sample in Shanghai is taken to calculate and optimize the location selection and inventory decision-making, at the same time, analyze the collection distance impact to collection ratio, and analyze the collection ratio sensitivity as well. This is the new explore to collectors'inventory control and decision-making method research, also provide the theory instruction to the enterprises to implement callback management based on remanufacturing.2. The manufacturer spare parts double source inventory control model is established To analyze the continuously improved collection ratio impact to manufacturers' spare parts ordering and WEEE re-handling strategy with the residents environment protection sense, to choose the reasonable spare part supply channel for manufacturers, to provide the new solution of managing new spare part inventory and dealing with WEEE, to improve the influence of manufacturers' inventory control strategy analysis method to enterprises practice operation.3. Remanufacturing closed-loop supply chain multi-echelon inventory simulation model is established. To study WEEE callback impact to manufacturers' WEEE inventory, spare parts inventory and suppliers' inventory by establishing information sharing multilevel inventory simulation module, work out the conclusion, that is, the information sharing platform can help whole supply chain to improve competiveness, to provide the new solution of manage closed-loop supply chain multilevel inventory.