System Dynamics Analysis of Policy-Choosing in Reverse Supply Chain

According to the relationship of the members in reverse supply chain and the members in forward supply chain, R/M integrated supply chain can be divided into two kinds: the strongly integrated R/M supply chain and the weakly integrated R/M supply chain. In the reverse supply chain of weakly integrated R/M supply chain, the manager of disassembly center wonder about the trend of future situation, including the collection amount, the inventory of the used-product, the collection price and the total profit. In this paper, we present the simulation of the latter reverse supply chain with different policies by system dynamics methodology, and give the analysis of the simulation results. By our simulation and analysis, the fluctuations of the used-product inventory, the collection amount and the collection price in policy II are smaller than that in policy I; the total profit of the reverse supply chain by policy II is better than that of policy I. As a result, the disassembly center should choose the policy II.