Study On Product Recycle Model & Reverse Logistics Network For Re-manufacturing

To study the re-manufacture reverse logistics model and logistics network design, this paper utilizes some theories and methods synthetically, such as supply chain management, operation management and optimization theory etc. It studies several basic problems as follows: how to get more profit in the remanufacture reverse logistics system; how to design a close loop supply chain logistics network in the remanufacture model; and what kinds of facts would be the key in the remanufacture reverse logistics system. To solve these problems, a"Pre-sale coordination recycle"model has been built to set a coordination protocol to make sure that seller and buyer can get the optimization profit in the business; a re-manufacture reverse logistics network model have been set to make a contrast between"extend model"and"integrate model"; This paper has used a two-layer close loop supply chain model to research the return rate and remanufacture cost in the remanufacture reverse logistics system.The main work and contributions of the paper can be concluded in the following parts:Chapter one: Firstly, it analyzes the research background and significance of the paper and introduces the relative concepts of reverse logistics models and network design. Secondly, it summarizes and remarks the existing literatures of reverse logistics network design, points out its shortages and specifies the feasible orientation of the paper. Finally, it specifies the research content and builds a framework for the paper.Chapter two: It studies the"Re-manufacture reverse logistics"models; in this paper a"Pre-sale coordination recycles"model has been set. Contracted with normal reverse logistics model, seller and buyer would set a protocol about product cost and return time, by this way used product could be return in great return rate and remanufactured in low cost, at the same time, customers can always get products that are in good condition. And in different markets, this model has different results.Chapter three: It studies the method to build a re-manufacture reverse logistics network. And make a contract between two methods:"Extend model"and"Integrate model". In general,"Integrate model"can get lower logistics cost, but in some times, this kinds of cost advantage is very small, especially when transportation cost is a small part of logistics cost, so some times"Extend model"is a more convenient choice to build a reverse logistics network.Chapter four: It studies the main facts that affect profit in the close loop supply chain. When re-manufacture business is set in the close loop supply chain, an enterprise could get profit by lower remanufacture cost and high return rate, but some times, it can not. In this paper, a two-layer close loop supply model that with greatest profit as the target has been set to research that how can remanufacture cost and return rate affect the profit. And the result shows that when remanufacture is higher than a valve higher return rate would cause lower profit; when remanufacture is lower than a valve, more return rate and greater profit.The main innovations are as follows:(1)"Pre-sale coordination recycles"model. In the paper, a new cooperation model between supplier and customers has been created to solve problems about return rate and used products remanufacture cost. In this model, a protocol product price and return time have been set to make sure that product could be returned in a high return rate and better condition, in this way, customers can get better product and supplier could re-manufacture used product in lower cost. It also makes a contrast with normal recycle models, and finds out the advantage of this model.(2) An integrated non-linear programming has been set to make a contrast between"Extend model"and"Integrate model". It find out the cost advantage and disadvantage in these two models to make a decision support about what kind of model should been chosen.(3) A two-layer close loop supply model that with greatest profit as the target has been set to research that how can remanufacture cost and return rate affect the profit. And it shows that when remanufacture is higher than a valve higher return rate would cause lower profit; when remanufacture is lower than a valve, more return rate and greater profit.