Analysis of the dynamic impact of environmental policies on reverse logistics

This paper studies a production system, which combines product remanufacturing and the original production. The analysis tool employed is the System Dynamics (SD) methodology. Specifically, using SD a dynamic model of a dual system (forward and reverse supply chain) is built. The system includes production, remanufacturing, consumption and disposal of used products. The dynamic model is used to study the system behavior under external influences, such as the environmental legislation and investments on remanufacturing facilities. These influences are examined both during the transient and the steady state. Using the model, it is possible to evaluate alternative strategies and to determine the optimal one towards the objectives.