Analyzing supply chain robustness for OEMs from a life cycle perspective using life cycle simulation

Long‐term relationships between original equipment manufacturers (OEMs) and stakeholders in their supply chain and end‐of‐life process can be designed, while considering uncertainty in future environmental legislation changes. This study proposes a method to analyze the capability of OEMs to reconfigure their supply chain and end‐of‐life operations to achieve performance targets, which are defined in terms of environmental impacts and life cycle costs. Using life cycle simulation (LCS), the physical deterioration and the functional obsolescence of individual products are considered as stochastic elements in the analysis. The analyzed reconfiguration capability provides the OEM with robustness against uncertainty from a life cycle perspective.