Analysis on the Impact of Reverse Logistics on the Dynamic Behaviors in a Two-Stage Supply Chain

The raw materials order rate exhibits dynamic behaviors such as additional system oscillation and demand amplification caused by the increase in the desired raw materials stock triggered by the surge in desired production starts. A system dynamics model of a supply chain consisting of two stages is investigated. The impact of a reverse logistics for direct reuse productions on such dynamic behaviors of the supply chain is studied in this paper. Our results clearly showed that reverse logistics management is do to help restraining the dynamic behavior in supply chains. Furthermore, the simulation results illustrate that the weakening degree will be greater when the return rate increases.