Production planning and simulation for reverse supply chain

This paper describes a production planning method for a reverse supply chain, in which a disassembly company takes reusable components from returned used products and supplies the reusable components for a product manufacturer. This method addresses the issue that the timings and quantities of returned products and reusable components obtained from them are unknown. This method first predicts the quantities of returned products and reusable components at each time period by using reliability models. Using the prediction result, the method performs production planning based on Material Requirements Planning (MRP). This method enables us to plan at each time period: the quantity of the products to be disassembled; the quantity of the reusable components to be used; and the quantity of the new components to be produced. The flow of the components and products through a forward and reverse supply chain is simulated to show the effectiveness of the method.