Simulation modelling of reverse logistics networks

While consumers traditionally dispose of products at the end of their life cycle, product take-back legislations introduced by governments shift this responsibility from consumers to manufacturers. As a result manufacturers have to collect products at the end-of-life (EOL) and control their recovery or disposal. Product recovery, which encompasses reuse, remanufacturing and materials recycling, requires a structured reverse logistic network in order to collect products efficiently at the end of their life cycle. This paper presents a simulation model of a reverse logistics network for collecting EOL appliances in the Sydney Metropolitan Area. The simulation results show that the model presented in this paper calculates the collection cost in a predictable manner. Moreover, it provides a tool to understand how the system behaves by carrying out ‘what-if’ assessments and to identify which factors are most important for further more detailed analysis.