Abstract
We establish the model of multilevel closed-loop supply chain (CLSC) which included raw material supplier, manufacturer, distributor, retailer, and third-party recycler based on system dynamics (SD). Considering factors which influence recycler behavior-environmental policy index and recovery delay, we apply SD software—Vensim—to simulate CLSC model and study recycler behavior’s influence on the entire CLSC through calculating the bullwhip effect of all levels members order rate. Research shows that (1) the larger the environmental policy index, the greater the recycle proportion and the better the effect of weakening retailer’s order rate in forward supply chain, which however, increasingly, strengthen the reverse supply chain bullwhip effect, (2) the shorter the recovery delay, the better the effect of weakening the forward supply chain bullwhip effect and the longer the recovery delay, which increasingly weakens the reverse supply chain bullwhip effect, and (3) the effect of environmental policy index on the bullwhip effect of all levels members order rate is more significant than recovery delay.
Highlights
We establish the model of multilevel closed-loop supply chain (CLSC) which included raw material supplier, manufacturer, distributor, retailer, and third-party recycler based on system dynamics (SD)
Research shows that (1) the larger the environmental policy index, the greater the recycle proportion and the better the effect of weakening retailer’s order rate in forward supply chain, which increasingly, strengthen the reverse supply chain bullwhip effect, (2) the shorter the recovery delay, the better the effect of weakening the forward supply chain bullwhip effect and the longer the recovery delay, which increasingly weakens the reverse supply chain bullwhip effect, and (3) the effect of environmental policy index on the bullwhip effect of all levels members order rate is more significant than recovery delay
We establish the model of the multilevel closed-loop supply chain (CLSC) which includes a raw material supplier, a manufacturer, a distributor, a retailer, and a third-party recycler based on system dynamics (SD)
Summary
Nowadays, closed-loop supply chain has become a new research point since people pursue circular economy and social sustainable development. Many scholars would like to discuss the bullwhip effect in open-loop supply chain They research this problem from the following aspects. Lehr et al [15] developed a model that allows an original equipment manufacturer in the electronics industry to test different value recovery strategies for business-to-business products in a closed-loop supply chain setting. They analyze the complexity of reverse logistics processes using the system dynamics model. Fewer scholars research the environment policy index impact on recycler behavior in electronic products closed-loop supply chain.
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