Analysis of Reverse Logistics Artifact

Institutional pressures have caused manufacturers in the automotive, consumer appliance, and electronic industry sectors to adapt to the environmental regulations thereby placing additional emphasis on the recovery of waste. Product recovery which entails the recovery, recycling, remanufacturing, and reuse of wastes requires those in international logistics management to utilize efficient measures in reverse logistics (Kumar & Putnam, 2008, p.305). In an effort to optimize efficiency, the three industry sectors utilized a methodology based on optimization modeling and solution techniques. Assessment of the SWOT analysis developed by the automotive, consumer appliance, and electronic industry identified the different categories used in solving the design issues from a reverse logistic framework. This led to the design of a reverse logistics solution geared toward economic efficiency.

An optimization modeling and solution technique are directly correlated to strategic level planning of reverse logistics. On a strategic planning level, manufacturers should adopt management strategies that aid in constructing a reverse logistics system to promote economic efficiency as a sustainable business strategy. End-of-life process goals will “influence the channel choice of product recovery” (Kumar & Putnam, 2008, p.312). The heighten integration of end-of-life processing ensures manufacturers are meeting and optimizing costs. Improvements in recycling and reuse will aid in the development of a closed-loop supply chain. Since the cost of recovery is critical in optimizing its costs, end-of-life products with an unknown return value must follow a strategy to save transportation costs which involves evaluation of the product or assembly and sorting of valued parts at a collection location in close proximity to the consumer (Kumar & Putnam, 2008, p.312). Following this assessment, only the valued parts should be returned to either the manufacturer or the next user. Manufacturers should only partake in the recovery process when the lifecycle cost associated with recovery from the customers is significantly lower than the transportation costs involved in the process (Kumar & Putnam, 2008, p. 312).

Reference

Kumar, Sameer, & Putnam, Valora. (2008). Cradle to cradle: Reverse logistics strategies and opportunities across three industry sectors. Int. J. Productions Economics. 305-12. doi:10.1016/j.ijpe.2007.11.015