On the use of RFID in the management of reusable containers in closed-loop supply chains under stochastic container return quantities |
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| Institution: | 1. Graduate School of Logistics, Incheon National University, Songdo-Dong, Yeonsu-Gu, Incheon 406-840, Republic of Korea;2. Carlo and Karin Giersch Endowed Chair “Business Management: Industrial Management”, Department of Law and Economics, Technische Universität Darmstadt, Hochschulstr. 1, 64289 Darmstadt, Germany;1. Department of Industrial and Systems Engineering, The University of Tennessee, Knoxville, TN 37996-0221, USA;2. Federal University of Itajuba, Itajuba 37500-903, Brazil;3. University of Tennessee Space Institute, Tullahoma, TN 37388-9700, USA;1. Sino-US Global Logistics Institute, Shanghai Jiao Tong University, Shanghai 200030, PR China;2. Industrial Logistics, Luleå University of Technology, 97187 Sweden;3. Department of Industrial Management, National Taiwan University of Science and Technology, Taipei, Taiwan R.O.C;4. School of Economics and Management, Fuzhou University, Fuzhou 350116, PR China;1. Department of Industrial & Management Engineering, Hanyang University, Ansan, Gyeonggi-do 15588, South Korea;2. School of Mechanical, Aerospace, and Nuclear Engineering, Ulsan National Institute of Science and Technology, Ulsan 44919, South Korea |
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| Abstract: | This paper studies a closed-loop supply chain that uses containers for transporting products from a supplier to a retailer. At the retailer, used containers are collected and returned to the supplier. The supplier inspects returned containers, and either repairs and reuses or disposes them. This paper studies the case where the fraction of containers that are returned to the supplier is stochastic, and where an RFID system can be used to support the tracking of container positions in the supply chain. The use of RFID leads to improved information on the return of containers and better return predictability as well as higher return rates, which we model as an increase in the mean return rate of containers and a reduction in return variance. The paper first develops a mathematical planning model for this scenario, and it then studies how the use of RFID impacts the performance of the system. In addition, it analyzes under which conditions the use of RFID is economical, and in which situations traditional container systems should be preferred. |
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| Keywords: | RFID Returnable transport items Container management Closed-loop supply chain Stochastic product return |
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