Economic Analysis On Closed-loop Supply Chain Based On Remanufacturing

With the awareness enhancing of environmental protection and sustainable development, more and more countries and enterprises start to attach importance to the development of circular economy, which reflects in the re-manufacturing and recycling of products, recycling of resources. In this context, the closed-loop supply chain which is the combination of forward supply chain and reverse supply chain emerges as the age requires. This paper analyzed the economy of the closed-loop supply chain based on remanufacturing engineering. It is significant for supporting manufacturing enterprises to change their strategy, to establish enterprise image, to improve the socio-economic and environmental benefits, to change from legal enforcement to the independent and voluntary participation, to promote the application of re-manufacturing projects in Chinese circular economy field.This paper analyzed the economy of the closed-loop supply chain with the approach of qualitative analysis and quantitative modeling, generalized the economic impact factors, discussed the two aspects of direct economic benefit sources of the closed-loop supply chain based on remanufacturing engineering, built the cost model and profit model of the closed-loop supply chain based on remanufacturing engineering,and then carried out the numerical experiments of sensitivity analysis with the two economic impact factors which are recovery rate and re-manufacturing rate, and finally, the best recovery rate and re-manufacturing rate which made the largest profits of re-manufacturers and the closed-loop supply chain is obtained through simulation and optimization. This study has a certain reference value for solving the re-manufacturing enterprises to identify the economic impact factors of the closed-loop supply chain, to organize and control effectively of re-manufacturing production and to improve the profits of the closed-loop supply chain.The whole paper was consisted of six chapters,which are as follows:The chapter 1, established the research intent,purpose and significance and the status quo at home and abroad, pointed out the content, technique and the consider way of the paper.The chapter 2, summarized the theoretical foundation of the closed-loop supply chain based on reproducing, summed up three aspects which were: an overview of recycling economy, and re-manufacturing engineering with its contribution to the recycling economy, and closed-loop supply chain based reproducing.The chapter 3, expounded the general approach and content of the economic analysis about the close-loop supply chain based on reproducing, that is, from the connotation of the economic ,research content, the analysis of impact factors and cost-effectiveness analysis to do a detailed summary, and divide the impact factors of the economy about the closed-loop into two categories:internal factors and external factors, finally give out the direct economic benefit of the closed-loop supply chain based on reproducing,that come from two aspects: (1) the reproducing must fully meet the customers'requirements for product quality; (2) high-tech bring added value to products.The chaper 4, did a depth analysis on three aspest: the system elements and boundary of the reproducing closed-loop supply chain, the cost structure of the system, and the benefit struture of the system,that obtain a definite answer about the border issue of the closed-loop supply chain which based on reproducing, that provided a prerequisite for constitute a model. choosing the rate of recovery and re-manufacturingβthese two significant economic factors ,to build a reproducing cost model and the profit model of closed-loop supply chain based on remanufacturing, and give out a numerical experiment which was about the economic impact factors and the profit-cost model.The chapter 5, combined with the instance of the reproducing for engine, we did a sensitive analysis with a single factor and a sensitive analysis with two factors which were about the reclaimed rate and remanufacturing rate ofβimpact the reproducing enterprises'profit, that obtained a most sensitive factor which impact the profit, then used MATLAB software to optimize the profit model,and finally find the best reclaimed rate and best re-manufacturing rate which let the profit of the reproducing enterprises and the gross profit of the closed-loop supply chain to be the max, and amended the results with the inhibit conditions.The chapter 6,The full text of summing up and pointed out that the content of further studies.The main results of the paper are:1. According to the status quo of the closed-loop supply chain, after summing up the existing theory, the paper pointed out the signification of the closed-loop supply chain which based on the reproducing, and concluded the process , mode and the structure of it.2. Expounded the general approach and content of the economic analysis about the closed-loop supply chain which based on reproducing,and divide the impact factors of the economy about the closed-loop into two categories:internal factors and external factors, and give out a basic interpretation from a qualitative point of view about the supply chain based on closed-loop.3. Constructed a profit and cost model of the closed-loop supply chain based on reproducing, and designed a numerical experiment which was about the economic impact factors and the profit-cost model, that provided a reference for the reproducing enterprises to identify the sensitive impact factors on the economy of the closed-loop supply chain.4. Combined with the instance of the reproducing for engine, we did a sensitive analysis with a single factor and a sensitive analysis with two factors which were about the reclaimed rate and re-manufacturing rate ofβimpact the reproducing enterprises'profit, that obtained a most sensitive factor which impact the profit, then used MATLAB software to optimize the profit model, and finally find the best reclaimed rate and best re-manufacturing rate which let the profit of the reproducing enterprises and the gross profit of the closed-loop supply chain to be the max, and amended the results with the inhibit conditions, which made the two theoretical numbers more accord with the need in production, that has a certain reference value for the effective organization and contrl during production and also for the leaders to make decisions.