Reverse logistics is a modern field of consideration, research and study, providing helpful information on the operation of the closed-loop supply chain. Although the starting point of this field is traced back to the early 90’s, no standard method has been suggested, neither prevailed. The purpose of this paper is to introduce a new approach on the study of reverse logistics. It is actually a review on how System Dynamics (SD) can be a helpful tool when it is used in the reverse logistics field. | Yugoslav Journal of Operations Research 14 (2004), Number 2, 259-272 DECISION MAKING IN REVERSE LOGISTICS USING SYSTEM DYNAMICS P. GEORGIADIS, D. VLACHOS Department of Mechanical Engineering Aristotle University of Thessaloniki 541 24, Thessaloniki, Greece Received: January 2003 / Accepted: May 2004 Abstract: Reverse logistics is a modern field of consideration, research and study, providing helpful information on the operation of the closed-loop supply chain. Although the starting point of this field is traced back to the early 90’s, no standard method has been suggested, neither prevailed. The purpose of this paper is to introduce a new approach on the study of reverse logistics. It is actually a review on how System Dynamics (SD) can be a helpful tool when it is used in the reverse logistics field. The paper explains the basic theory of the system modelling and next it utilizes the reverse logistics model. Finally, an illustrative example shows how SD modeling can be used to produce a powerful long-term decision-making tool. Keywords: Reverse logistics, supply chain management, system dynamics. 1. INTRODUCTION In the world of finite resources and limited capacities of disposal facilities, recovery of used products and material is a key to support a growing population at an increasing level of consumption. The “reuse” opportunities of both used products and materials give rise to a new material flow from the user back to the producers. The management of this material flow opposite to the traditional supply chain flow is the concern of the recently emerged field of “reverse logistics”. [5] [6] [10] [19] Several definitions are given for reverse logistics. Stock [19] and Kopichi et al. [10] define reverse logistics as “the term often used to refer to the role of logistics in recycling, waste disposal, and management of hazardous materials; a broader perspective includes all issues relating to logistics activities carried out in source reduction, .
