Study of reverse logistics for Household Appliances industry based on system dynamics modeling

This paper is focus on reverse logistics system of China household appliances industry. A system dynamic model has been developed to complement with prior models and is validated using data collected from a Color TV company manufacturer handling returns with volumes transacted over a period of two years. The results from the model indicate that part replacements from suppliers are more profitable than refurbished household appliances parts. In addition, transportation delay and supplier delay in processing returns have a significant impact on the viability of reverse logistics regardless of return volumes.