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Exploration on the Manufacturing Strategy for Recyclable Products in Green Supply Chain

Wen-Ching Kuo, Shiang-Huei Kung, Chinyao Low

Abstract


In recent years, due to constant progress made in information technology, it also triggers rapid development in the global economy. As a result, developments for acquiring more resources precipitate the destruction of the environment. People caring for such limited natural resources as well as the environment as a whole causes more and more countries to set up strict product recycling act. Therefore, for enterprises engaged to production, design and resource recycling and reusing as well as remanufacturing, the so called resource effective using and reusing, these have become the focused topics for all humans. This research adopts the cost minimization as the performance index and in addition, targets to Make to Stock (MTS) strategy as well as Make to Order (MTO) strategy in order to separately construct mathematical models to substantiate these. Moreover, through system simulation approach, this research also explores, under the premise of remanufacturing environment with three scenarios like customer demand certainty, product demand certainty and lead time certainty, we explore what kind of manufacturing strategy would enable better performance as result. Findings of this research reveal that: when material demand certainty is low, the Make to Stock (MTS) strategy performs better than that of Make to Order (MTO) strategy.

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