Lin, Junyi, Zhou, Li ORCID: 0000-0001-7132-5935, Spiegler, Virginia L.M, Naim, Mohamed M. and Syntetos, Aris (2021) Push or pull? The impact of ordering policy choice on the dynamics of a hybrid closed-loop supply chain. European Journal of Operational Research, 300 (1). pp. 282-295. ISSN 0377-2217 (doi:https://doi.org/10.1016/j.ejor.2021.10.031)

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Abstract

We study the dynamic behaviour of a hybrid system where manufacturing and remanufacturing operations occur simultaneously to produce the same serviceable inventory for order fulfilment. Such a hybrid system, commonly found in the photocopier and personal computer industries, has received considerable attention in the literature. However, its dynamic performance and resulting bullwhip effect, under push and pull remanufacturing policies, remain unexplored. Relevant analysis would allow considering the adoption of appropriate control strategies, as some of the governing rules in a push-based environment may break down in pull-driven systems, and vice versa. Using nonlinear control theory and discrete-time simulation, we develop and linearise a nonlinear stylised model, and analytically assess bullwhip performance of push-and-pull controlled hybrid systems. We find the product return rate to be the key influencing factor of the order variance performance of pull-controlled hybrid systems, and thus, to play an important role towards push or pull policy selection. Product demand frequency is another important factor, since order variance has a U-shaped relation to it. Moreover, the product return delay shows a supplementary impact on the system’s dynamics. In particular, the traditional push-controlled hybrid system may be significantly influenced by this factor if the return rate is high. The results highlight the importance of jointly considering ordering structure and product demand characteristics for bullwhip avoidance.

Item Type:	Article
Uncontrolled Keywords:	system dynamics; closed-loop supply chains; bullwhip effect; push and pull production; nonlinear dynamics
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management H Social Sciences > HF Commerce T Technology > TJ Mechanical engineering and machinery
Faculty / School / Research Centre / Research Group:	Faculty of Business Faculty of Business > Department of Systems Management & Strategy Faculty of Business > Networks and Urban Systems Centre (NUSC) Faculty of Business > Networks and Urban Systems Centre (NUSC) > Connected Cities Research Group
Last Modified:	02 Mar 2022 13:39
URI:	http://gala.gre.ac.uk/id/eprint/34288

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