Research On Modeling Of System Dynamics And Profit Decision In Remanufacturing Supply Chain

With the development of technology and society, has generated the “new and improved “products, and subsequently spawned the product renovation rate accelerated, the life spans of products have gotten shorter because of the marketplace competition and the individual demand of consumers. Lots of used products leads to resource waste and environment pollution, remanufacturing is one of the effective forms of recycling used products, and remanufacturing has contributed to reduce production costs, resource waste and environmental pollution, it will be economically and environmentally viable. The traditional forward supply chain and reverse supply chain with used products form closed-loop supply chain which is a complexity network structure,and it leads to supply chain management become more dynamic and complex. Managers and researchers are always exploring the ways to understand the remanufacturing supply chain system dynamic behavior model, and the collaboration between system profit and bullwhip effect in remanufacturing supply chains. This paper takes advantage of the method of System Dynamics to build remanufacturing supply chains system dynamics model, analyzes dynamic characteristics of remanufacturing supply chain, studies the model of remanufacturing supply chain, remanufacturing supply chain with products exchange policy, and remanufacturing supply chain with secondary market, also analyzes the relationship between system profit and bullwhip effect in remanufacturing supply chain, makes decisions on the remanufacturing supply chain system profit.This paper constructs the remanufacturing supply chain system dynamics model with random collection time, collection percentage, and remanufacturing percentage, where remanufacturing means products remanufacturing, direct reuse of components and remanufacturing components, shows the mathematical relationship between each variable in retailer, distributor, manufacturer, collection and remanufacturing of the supply chain. The model test results prove the efficiency of the model.Computer simulation and test are conducted based on the remanufacturing supply chain system dynamics model, carries on quantitative and analysis of the dynamic behavior in the remanufacturing supply chain, such as manufacturing process, supply chain distribution process and used products recycling process. This paper also analyzes the bullwhip effect in different members of the supply chain and the bullwhip effect comparison analysis among them, the simulation results show that the bullwhip effect in remanufacturing system members decline with the increase of collection percentage and remanufacturing percentage.To reduce the bullwhip effect, put forward implementing products exchange policy from the supply chain structure design, and constructs system dynamics model of remanufacturing supply chain with products exchange policy, carries on quantitative and analysis of the dynamic behavior of used products, collection, demand and demand structure in the remanufacturing supply chain with products exchange policy, the simulation results show that the products exchange policy can effectively increase the customer demand and reuse rate, the bullwhip effect of all members in remanufacturing system with products exchange policy decline with the increase of products exchange percentage, when products exchange percentage is larger, the upstream supply chain manufacturer bullwhip effect fell more greater than its downstream distributors and retailers.In view of segmentation situation which means the product quality between remanufacturing products and new manufacturing products are different, this paper constructs the system dynamics model of remanufacturing supply chain with secondary market, carries on quantitative and analysis of the dynamic behavior of collection and remanufacturing process, primary and secondary market structure, reuse ratio, the secondary market orders, shipments and inventory in the remanufacturing supply chain model with secondary market, the simulation results show that product homogeneity sales will increase the sales, collection of used products, product manufacturing and remanufacturing. The bullwhip effect of primary market under the unified market fell greater than the presence under the secondary market.This paper also constructs goal programming decision models of system profit in remanufacturing supply chain, remanufacturing supply chain with products exchange policy, and remanufacturing supply chain with secondary market, the objectives of goal programming includes the coordination of supply chain members, to achieve maximal system revenue and minimal system cost, there are different priority factors for different objectives, simulation results show that there are optimum values of collection percentage, remanufacturing percentage and products exchange percentage to obtain optimum system profit. Quantitative analysis of the mathematical relationship between remanufacturing supply chain system profit and the bullwhip effect shows that there is a relationship of convex function between system profit and manufacturer bullwhip effect under different collection percentage, the increase of product remanufacturing percentage can reduce the bullwhip effect, and also can improve the supply chain system profit, with the increase of products exchange percentage, the systems profit is monotone increasing, simulation results also show that there is a convex function relationship between system profit and products exchange percentage in remanufacturing supply chain with second market, system profit is lower than system profit in unified market system.In summary, this paper analyzes the system dynamic characteristics of remanufacturing supply chain, constructs the remanufacturing supply chain system dynamics model with random collection time, collection percentage, and remanufacturing rate, also analyzes the models of remanufacturing supply chain with products exchange policy, and the models of remanufacturing supply chain with secondary market, compares and analyzes strategies in different models, carries on quantitative analysis of the dynamic behavior in remanufacturing supply chain model, put forward implementing products exchange policy to reduce the bullwhip effect from supply chain structure design, also analyzes the relationship between system profit and bullwhip effect in remanufacturing supply chain, make decisions on the remanufacturing supply chain system profit. The related research achievements will promote the understanding of the dynamics characteristics of remanufacturing supply chain system in certain degree, and the collaboration among system profit and bullwhip effect in remanufacturing supply chains.