Reverse Logistics: An Analysis Of The Closed Loop Cycle
1.1.1 Reverse Logistics
The majority of the challenges for remanufacturing are related with the reverse logistic process. Moreover, these interrogations have a big incidence on how hard or easy is to solve the other remanufacturing challenges. For this reason, this section starts with a detailed explanation of reverse logistics using various models that during the research stand out for being clear and detailed at the same time.
For understanding reverse logistics, first, it is important to understand the Closed Loop Cycle concept. Closed Loop Cycle is defined as a system that tries to maximize the value creation during a life cycle of a product through returns. Figure 2.5 shows the model proposed by Gallo et al. The model in blue describes …show more content…
Collecting the information required for is a big issue because it has to be gathered and used rapidly if one wants to collect as many cores as possible. This intangible information is very important for the coordination of all the involved parties, therefore its correct use is critical, and in many cases, it doesn’t work property. An example is the unclear number of expected returned cores, that require an over or low supply of transportation means. Additionally, there is an “afterlife” information that is very important for the feedback it can give about the taste of the consumer, the behavior of product in the market field, and any potential quality problem that need to be solved.
Table 2.7 summarizes the challenges related to reverse logistics.
Reverse Logistics Challenges
The involvement of many players difficult the coordination of the recollection activities.
There is no real incentive for the final customer to return the product.
The cars are distributed in various unknown location (even across borders).
The returned items involve many locations, each with low volumes.
It is hard to determine when a car return, due to the use is given by the owner and its location (no accurate return forecast).
The uncertainty of the returned vehicles and parts forces the creation of high inventories, that may be never be used.
The returned item or vehicle may not be the expected one due to modification or excessive
The majority of the challenges for remanufacturing are related with the reverse logistic process. Moreover, these interrogations have a big incidence on how hard or easy is to solve the other remanufacturing challenges. For this reason, this section starts with a detailed explanation of reverse logistics using various models that during the research stand out for being clear and detailed at the same time.
For understanding reverse logistics, first, it is important to understand the Closed Loop Cycle concept. Closed Loop Cycle is defined as a system that tries to maximize the value creation during a life cycle of a product through returns. Figure 2.5 shows the model proposed by Gallo et al. The model in blue describes …show more content…
Collecting the information required for is a big issue because it has to be gathered and used rapidly if one wants to collect as many cores as possible. This intangible information is very important for the coordination of all the involved parties, therefore its correct use is critical, and in many cases, it doesn’t work property. An example is the unclear number of expected returned cores, that require an over or low supply of transportation means. Additionally, there is an “afterlife” information that is very important for the feedback it can give about the taste of the consumer, the behavior of product in the market field, and any potential quality problem that need to be solved.
Table 2.7 summarizes the challenges related to reverse logistics.
Reverse Logistics Challenges
The involvement of many players difficult the coordination of the recollection activities.
There is no real incentive for the final customer to return the product.
The cars are distributed in various unknown location (even across borders).
The returned items involve many locations, each with low volumes.
It is hard to determine when a car return, due to the use is given by the owner and its location (no accurate return forecast).
The uncertainty of the returned vehicles and parts forces the creation of high inventories, that may be never be used.
The returned item or vehicle may not be the expected one due to modification or excessive