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Push or Pull? The impact of ordering policy choice on the dynamics of a hybrid closed-loop supply chain

Lin, Junyi, Zhou, Li, Spiegler, Virginia, Naim, Mohamed and Syntetos, Aris 2021. Push or Pull? The impact of ordering policy choice on the dynamics of a hybrid closed-loop supply chain. European Journal of Operational Research 10.1016/j.ejor.2021.10.031

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Abstract

We study the dynamic behaviour of a hybrid system where manufacturing and remanufacturing operations occur simultaneously to produce the same serviceable inventory for order fulfilment. Such a hybrid system, commonly found in the photocopier and personal computer industries, has received considerable attention in the literature. However, its dynamic performance and resulting bullwhip effect, under push and pull remanufacturing policies, remain unexplored. Relevant analysis would allow considering the adoption of appropriate control strategies, as some of the governing rules in a push-based environment may break down in pull-driven systems, and vice versa. Using nonlinear control theory and discrete-time simulation, we develop and linearise a nonlinear stylised model, and analytically assess bullwhip performance of push- and pull-controlled hybrid systems. We find the product return rate to be the key influencing factor of the order variance performance of pull-controlled hybrid systems, and thus, to play an important role towards push or pull policy selection. Product demand frequency is another important factor, since order variance has a U-shaped relation to it. Moreover, the product return delay shows a supplementary impact on the system's dynamics. In particular, the traditional push-controlled hybrid system may be significantly influenced by this factor if the return rate is high. The results highlight the importance of jointly considering ordering structure and product demand characteristics for bullwhip avoidance.

Item Type: Article
Date Type: Published Online
Status: In Press
Schools: Business (Including Economics)
Centre for Advanced Manufacturing Systems At Cardiff (CAMSAC)
Additional Information: This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/)
Publisher: Elsevier
ISSN: 0377-2217
Funders: EPSRC
Date of First Compliant Deposit: 13 October 2021
Date of Acceptance: 13 October 2021
Last Modified: 11 Nov 2021 13:13
URI: http://orca.cardiff.ac.uk/id/eprint/81875

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