Modeling Total Cost of Ownership Utilizing Interval-Based Reliable Simulation Technique in Reverse Logistics Management

摘要

Reverse logistics involving closed-loop supply chains in various industry sectors has received growing attention throughout this decade. Reverse logistics considers several channels of reverse material flows from customers to suppliers. The value of product returns now exceeds USD100 billion annually in the United States. However, only a small fraction of the returned product value is recaptured by manufacturers. In this paper, the total cost of ownership problem is studied based on a general supply chain framework. An interval-based simulation model is developed to improve robustness when high uncertainties are involved.