Study of optimal capacity planning for remanufacturing activities in closed-loop supply chain using system dynamics modeling

The world of commerce is becoming increasingly competitive due to the lack of resources and importance of environmental awareness. Hence, most enterprises begin to focus on product re-usage. This practice however is facing many challenges before its potentials can be fully exploited. The work presented in this paper tackles the development of efficient capacity planning policies for remanufacturing facilities in closed-loop supply chains. The case under study is analyzed through a simulation model based on the system dynamics methodology. More precisely, we focused on studying how to evaluate alternative long-term capacity planning policies using simulation model to obtain maximum profit. Validation and numerical experimentation further illustrate the applicability of the approach presented in this paper.