Performance evaluation of reverse logistics enterprise – an agent-based simulation approach

Abstract

Reverse logistics (RL) has been applied in many industries and sectors since its conception. Unlike forward logistics, retracing consumer goods from the point of consumption to the point of inception is not a well-studied process. It involves many uncertainties such as time, quality and quantity of returns. The returned products can be remanufactured, have parts harvested, or be disposed safely. It is important to implement these activities in a cost-effective manner. The aim of this research is to measure the performance of the RL enterprise with the help of an agent-based simulation model. The major entities in the RL network are considered as Agents that can act independently. There are several different agents: collector agent, sorting-cum-reuse agent, remanufacturing agent, recycler agent, supplier agent and distributor agent. The individual performances of the agents are measured and recommendations are given to improve their performance, leading to the enhancement of the total performance of the RL enterprise. The approach is applied to a case study involving cell phone remanufacturing.