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Closed supply network modelling for end-of-life ship remanufacturing
- Source :
- The International Journal of Logistics Management. 33:431-454
- Publication Year :
- 2021
- Publisher :
- Emerald, 2021.
-
Abstract
- PurposeThis paper designs an optimal closed-loop supply chain network with an integrated forward and reverse logistics to examine the possibility of remanufacturing end-of-life (EoL) ships.Design/methodology/approachExplanatory variables are used to estimate the number of EoL ships available in a closed-loop supply chain network. The estimated number of EoL ships is used as an input in the model and then it is solved by a mixed-integer linear programming (MILP) model of the closed-loop supply chain network to minimise the total logistic costs. A discounted payback period formula is developed to calculate the length of time to recoup an investment based on the investment's discounted cash flows. Existing ship wrecking industry clusters in the Western region of India are used as the case study to apply the proposed model.FindingsThe MILP model has optimised the total logistics costs of the closed-loop supply network and ascertained the optimal number and location of remanufacturing for building EoL ships. The capital and variable costs required for establishing and operating remanufacturing centres are computed. To remanufacture 30 ships a year, the discounted payback period of this project is estimated to be less than two years.Practical implicationsShip manufacturing businesses are yet to re-manufacture EoL ships, given high upfront capital expenditure and operational challenges. This study provides management insights into the costs and benefits of EoL ship remanufacturing; thus, informing the decision-makers to make strategic operational decisions.Originality/valueThe design of an optimal close loop supply chain network coupled with a Bayesian network approach and discounted payback period formula for the collection and remanufacturing of EoL ships provides a new integrated perspective to ship manufacturing.
- Subjects :
- 0209 industrial biotechnology
Discounted payback period
Operations research
Computer science
Transportation
02 engineering and technology
Reverse logistics
010501 environmental sciences
Investment (macroeconomics)
01 natural sciences
Variable cost
020901 industrial engineering & automation
Supply network
Cash flow
Supply chain network
Business and International Management
Remanufacturing
0105 earth and related environmental sciences
Subjects
Details
- ISSN :
- 09574093
- Volume :
- 33
- Database :
- OpenAIRE
- Journal :
- The International Journal of Logistics Management
- Accession number :
- edsair.doi...........00170c2729e32b33d885cd8a63d980f2