A Simulation Analysis for Reverse Logistics in Automobile Subcon Industry

One of the biggest and most significant sectors in the world is the automobile industry. To make and deliver a vehicle, a number of supply chain operations are needed, such as sourcing and procurement, production, and logistics management. Among the operations, reverse logistics is a value added to other industries meanwhile for automobile, it is still unclear whether it can be profitable or not. The current implementation in the industry needs to be analysed for the improvement process and its impact. In this study, a Discrete Event Simulation (DES) method has been used to analyse three scenarios including the repairing, recycling and remanufacturing time, taking into account stochastic parameters of damage occurrences in automobile subcon industry. In addition, the stability of the simulation model was also analyzed and comparable results are concluded for its impact.