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Session22 - SupplyChainModeling Session22:ClosedLoopSupply...

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Supply Chain Modeling Session 22: Closed-Loop Supply  Chains  Atalay Atasu
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© 2006 Atasu, Guide, Van Wassenhove Closed-Loop Supply Chains Supply chains that are designed and managed to  explicitly consider the reverse and forward supply  chain activities over the entire lifecycle of the  product.
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© 2006 Atasu, Guide, Van Wassenhove Traditional, Open-Loop Supply Chain Distribution Reseller or Customer Sales Manufacturing Raw Materials
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© 2006 Atasu, Guide, Van Wassenhove A Closed-Loop Supply Chain Distribution Reseller or Customer Sales Manufacturing Raw Materials Returns Commercial Returns Remanufactured product Return Stream Returns Evaluation Spare Components Spares Recovery Secondary Market
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© 2006 Atasu, Guide, Van Wassenhove Examples of Closed-Loop Supply Chains Containers (cameras, toner cartridges) Industrial remanufacturing (copiers) Consumer electronics (mobile telephones) Product life extension (jet engines, aircraft) Tire re-treading (passenger and commercial) Telecommunications (circuit packs and routers)
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© 2006 Atasu, Guide, Van Wassenhove Why CLSC? Product Returns ! How to handle product returns ? 
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© 2006 Atasu, Guide, Van Wassenhove Migrant child from Hunan province sits atop one of countless piles of unrecyclable computer waste imported from around the world. Guiyu, China. December 2001. Copyright Basel Action Network.
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© 2006 Atasu, Guide, Van Wassenhove Woman about to smash a cathode ray tube from a computer monitor in order to remove the copper laden yoke at the end of the funnel. The glass is laden with lead but the biggest hazard from this is the inhalation of the highly toxic phosphor dust coating inside. Monitor glass is later dumped in irrigation canals and along the river where it leaches lead into the groundwater. The groundwater in Guiyu is completely contaminated to the point where fresh water is trucked in constantly for drinking purposes. Guiyu, China. December 2001. Copyright Basel Action Network.
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© 2006 Atasu, Guide, Van Wassenhove Two different Return Streams Waste-driven Market-driven
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© 2006 Atasu, Guide, Van Wassenhove Product Returns Producer Responsibility Laws Popular in the EU Electronics  computers, mobile phones, consumer appliances Automobiles Other durable goods These may be referred to as  waste-stream  driven  returns
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© 2006 Atasu, Guide, Van Wassenhove Product Returns Many remanufacturing firms actively influence  product returns by providing incentives for the  return of products Incentives include: Deposits Cash paid for a specified level of quality Trade-in These may be referred to as  market-driven  returns 
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© 2006 Atasu, Guide, Van Wassenhove Product Returns These two views result in extremely different  behavior towards of reuse activities.
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