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A Multi-criteria Decision Model For EOL Computers in Reverse Logistics

A Multi-criteria Decision Model For EOL Computers in Reverse Logistics

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Published by ijcsis
With obsolescence rates on the rise the question as to what the user ultimately does with the end-of-life (EOL) product becomes an issue that has both environmental and economic implication. An important concern in EOL management for electronic products is to connect the equipment owners with potential buyers who may be interested in their EOL items, whether for reuse, component retrieval or material recovery. There is an estimate that the total obsolete computers originating from government offices, business houses, industries and household is of the order of 2.5 million numbers per year. Manufacturers and assemblers in a single calendar year are estimated to produce around 1500 tons of electronic scrap. One of the important problems faced by the top management in the computer hardware industries is the evaluation of various alternatives for EOL computers. The paper aims at linking the various issues of the reverse logistics in a single systematic framework for the selection of an alternative for the reverse logistics operations for EOL computers. The utility of the Analytic network process (ANP) in integrating both quantitative as well as the qualitative characteristics and using C++ as the platform for arriving at the best possible solution proves to be more realistic and accurate.
With obsolescence rates on the rise the question as to what the user ultimately does with the end-of-life (EOL) product becomes an issue that has both environmental and economic implication. An important concern in EOL management for electronic products is to connect the equipment owners with potential buyers who may be interested in their EOL items, whether for reuse, component retrieval or material recovery. There is an estimate that the total obsolete computers originating from government offices, business houses, industries and household is of the order of 2.5 million numbers per year. Manufacturers and assemblers in a single calendar year are estimated to produce around 1500 tons of electronic scrap. One of the important problems faced by the top management in the computer hardware industries is the evaluation of various alternatives for EOL computers. The paper aims at linking the various issues of the reverse logistics in a single systematic framework for the selection of an alternative for the reverse logistics operations for EOL computers. The utility of the Analytic network process (ANP) in integrating both quantitative as well as the qualitative characteristics and using C++ as the platform for arriving at the best possible solution proves to be more realistic and accurate.

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Published by: ijcsis on May 11, 2011
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 A Multi-Criteria Decision Model for EOL Computersin Reverse Logistics
 
K.ArunVasantha Geethan Dr.S.Jose
Department of Mechanical Engineering Loyola-ICAM College of Engineering &Sathyabama University, Chennai. India Technology ,Chennai. India
R.Devisree S.Godwin Barnabas
Cognizant Technology Solutions St.Joseph’s College of EngineeringChennai. India Chennai. India.
 Abstract-
With obsolescence rates on the rise the question as towhat the user ultimately does with the end-of-life (EOL) productbecomes an issue that has both environmental and economicimplication. An important concern in EOL management forelectronic products is to connect the equipment owners withpotential buyers who may be interested in their EOL items,whether for reuse, component retrieval or material recovery.
 
There is an estimate that the total obsolete computers originatingfrom government offices, business houses, industries andhousehold is of the order of 2.5 million numbers per year.Manufacturers and assemblers in a single calendar year areestimated to produce around 1500 tons of electronic scrap. Oneof the important problems faced by the top management in thecomputer hardware industries is the evaluation of variousalternatives for EOL computers. The paper aims at linking thevarious issues of the reverse logistics in a single systematicframework for the selection of an alternative for the reverselogistics operations for EOL computers. The utility of theAnalytic network process (ANP) in integrating both quantitativeas well as the qualitative characteristics and using C++ as theplatform for arriving at the best possible solution proves to bemore realistic and accurate.
Keywords
:
end-of-life, obsolescence, analytic network program,alternatives, reverse logistics.
 I
.
I
NTRODUCTION
Reverse logistics is the process of planning, implementing andcontrolling the efficient, cost effective low of raw materials,in-process inventory, finished goods and related informationfrom the point of consumption to the point of origin for thepurpose of recapturing value or proper disposal [1]. A reverselogistics defines a supply chain that is redesigned to efficientlymanage the flow of products or parts destined forremanufacturing, recycling, or disposal and to effectivelyutilize resource. According to a recent study, reverse logisticsis one of the twenty one top warehousing trends in the twentyfirst century (Brockmann,1999). Industries have started torealize that the reverse logistics can be used to gaincompetitive advantage. An evaluation framework, whichincorporates determinants and dimensions of reverse logistics,would be useful in configuring the post activities associatedwith the EOL computers. There are number of variablesaffecting the reverse logistics, some of these areinterdependent among each other.Analytic Network Process (ANP) is a technique that capturesthe interdependencies between the criteria underconsideration, hence allowing for a more systematic analysis[2]. It can allow inclusion of criteria, both tangible andintangible, which has some bearing on making the bestdecision. Further, many of these factors have some level of interdependency among them, thus making ANP modelingbetter fit for the problem under study. The ANP modelpresented in this paper structures the problem related toselection of an alternative for the reverse logistics option forEOL computers in a hierarchical form and links thedeterminants, dimensions and enablers of reverse logisticswith different alternatives.II. L
ITERATURE REVIEW
 Stock (1992) recognized the field of reverse logistics as beingrelevant for business and society in general. Kopicki, Berg,Legg, Dasappa, and Maggioni (1993) paid attention to thefield and pointed out opportunities on reuse and recycling.Fleischmann, Bloemhof-Ruwaard, Dekker, van der Laan, vanNunen, and Van Wassenhove (1997) had given acomprehensive review of literature of the quantitative modelsin reverse logistics. Reverse logistics programs in addition tothe various environmental and the cost benefits canproactively minimize the threat of government regulation andcan improve the corporate image of the companies (Carter &Ellram, 1998). Reverse logistics is the process of planning,implementing, and controlling the efficient, cost effective flowof raw materials, in-process inventory, finished goods andrelated information from the point of consumption to the pointof origin for the purpose of recapturing value or properdisposal (Rogers & Tibben-Lembke, 1998). A reverse logisticsdefines a supply chain that is redesigned to efficiently managethe flow of products or parts destined for remanufacturing,recycling, or disposal and to effectively utilize resources(Dowlatshahi, 2000).
(IJCSIS) International Journal of Computer Science and Information Security,Vol. 9, No. 4, April 2011157http://sites.google.com/site/ijcsis/ISSN 1947-5500
 
Thus, the reverse logistics focuses on managing flows of material, information, and relationships for value addition aswell as for the proper disposal of products. Reverse logisticshas been used in many industries like photocopiers (Krikke,van Harten, & Schuur, 1999a; Thierry, Salomon, Nunen, &Wassenhove, 1995; van der Laan, Dekker, & VanWassenhove, 1999) single-use cameras (Toktay, Wein, &Stefanos, 2000), jet engine components (Guide & Srivastava1998), cellular telephones (Jayaraman, Guide, & Srivastava,1999), automotive parts (van der Laan, 1997) and refillablecontainers (Kelle & Silver, 1989). In all the cases, one of themajor concerns is to assess whether or not the recovery of used products is economically more attractive than thedisposal of the products [3]. Reverse logistics are alsoextensively practiced in the computer hardware industry. IBMand Dell Computer Corporation have embraced reverselogistics by taking steps to streamline the way they deploy oldsystems; and in the process make it easier for the customers torefurbish existing computers or buy new parts (Ferguson,2000). Grenchus, Johnson, and McDonell (2001) reported thatthe Global Asset Recovery Services (GARS) organization of IBM’s Global Financing division has integrated some of thekey components of its reverse logistics network to support andenhance environmental performance. Moyer and Gupta (1997)have conducted a comprehensive survey of previous worksrelated to environmentally conscious manufacturing practices,recycling, and the complexities of disassembly in theelectronics industry. Gungor and Gupta (1999) have presentedthe development of research in environmentally consciousmanufacturing and product recovery (ECMPRO) and provideda state-of-the-art survey of the published work in this area.Veerakamolmal and Gupta (1997) have discussed a techniquefor analyzing the design efficiency of electronic products, inorder to study the effect of end-of-life disassembly anddisposal on environment. Nagel and Meyer (1999) discuss anovel method for systematically modeling end-of-lifenetworks and show ways of improving the existing and newsystems with ecological and economical concerns. Boon,Isaacs, and Gupta (2002) have investigated the critical factorsinfluencing the profitability of end-of-life processing of PCs.They also suggested suitable policies for both PCmanufacturers and legislators to ensure that there is a viablePC recycling infrastructure. Lambert (2003) presented a state-of-the-art survey of recently available literature ondisassembly sequencing and the papers closely related to thistopic. Krikke, van Harten, and Schuur (1999b) have discusseda case of the recycling PC-monitors as a part of a broader pilotproject at Roteb (the municipal waste company of Rotterdam,The Netherlands) where by using the model developed, itachieved a reduction of recycling costs by about 25%.Ferguson and Browne (2001) discussed the issues in EOLproduct recovery and reverse logistics. Knemeyer, Ponzurick,and Logar (2002) utilized a qualitative methodology toexamine the feasibility of designing a reverse logistics systemto recycle or refurbish EOL computers that are deemed nolonger useful by their owners [7]. From the literature review, itis observed that there is not much work reported till date formulti-criteria decision making in the decision making relatedto reverse logistics practices in the case of EOL computers.III. P
ROBLEM DESCRIPTION
 Reverse logistics have recently received much attention asmost of the companies are using it as a strategic tool to servetheir customers and can generate good revenue. It is a vitalpart of a successful business in warehousing and distribution.Recognizing that both the forward and reverse channels of thesupply chain can be combined and doing this correctly willsave a significant amount of money for the business.The representation of the model and decision environmentclearly shows that the overall objective is to carry out reverselogistics processes for EOL computers. The determinants of reverse logistics (economic factors, legislation, businessstrategy and customer service initiatives) are modeled to havedominance over the dimensions of reverse logistics. Thereverse logistics attribute enablers are those that assist inachieving the controlling dimension of reverse logistics. Thusthese are dependent on the dimension. Also, there are someinterdependencies among the enablers. The reverse logisticsimplementation alternatives in this model are the specificprojects or policies that a decision maker wishes to evaluate,given the various attribute levels of the reverse logistics. Thevarious alternatives available to the decision maker in this caseinclude third party reverse logistics, Self Support Logisticsand Virtual reverse logistics network.
Fig.1.ANP model for EOL ComputersDETERMINANTSDIMENSIONSENABLERSALTERNATIVESREVERSE LOGISTICS OVERALLWEIGHTED INDEX (RLOWI)CALCULATION FOR BESTALTERNATIVE
(IJCSIS) International Journal of Computer Science and Information Security,Vol. 9, No. 4, April 2011158http://sites.google.com/site/ijcsis/ISSN 1947-5500
 
 
IV. M
ETHODOLOGY
 The case study approach was selected because it is an idealmethod when a holistic, in-depth investigation is needed. Thiscase study approach helps to gather the facts from the realworld and explain the linkages between causes and effects.One such benefit is that the information provided is usuallymore concrete and contextual, specifically due to the in depthanalysis it offers of the case being studied.
 A.
 
 Algorithm
Step 1: StartStep 2: Model development and problem formulationStep 3: Pair-wise comparison of determinants
Fig.2. Determinants
 Step 4: Pair-wise comparison of dimensions for eachdeterminants
Fig.3. Dimensions
Step 5: Pair-wise comparison matrices between component /enablers levels
D
1
D
2
D
3
D
4
UncertainityModeling(UM)DemandForecasting(DF)Convenience(CON)WasteReduction(WR)Management of CollectionCenters(MCC)Forecastingcost(FS)GreenProducts(GP)CostSavings(CSA)Impact of Transportation(IT)Remanufacturingcost(RC)CustomerSatisfaction(CSF)RecapturingValue(REV)Table .1. Enablers with respect to the Dimensions
Two components would be compared at a time with respect toan upper level control criterion. The pair-wise comparisons of the elements at each level are conducted with respect to theirrelative influence towards their control criterion. For aDeterminant, Pair-wise comparison is done between theapplicable enablers within a given dimension cluster.Step 6: Pair-wise comparison matrices of interdependenciesamong the enablersStep 7: Evaluation of alternatives
Fig.4.Alternatives
 Step 8: Develop Super matrix from Pair-wise comparisonmatrices of interdependenciesStep 9: Selection of the best alternative for a determinantStep 10: Calculation of reverse logistics overall weightedindex (RLOWI)Step 11: Stop
Economic LegislationFactorsBusiness Customer ServiceStrategy InitiativesDeterminantsDesignRemanufacturingCustomerFinancialDimensionsD
1
D
4
D
3
D
2
Third VirtualParty ReverseReverse LogisticsLogistics (3PRL) Network (VRL)Self SupportLogistics(SSL)
(IJCSIS) International Journal of Computer Science and Information Security,Vol. 9, No. 4, April 2011159http://sites.google.com/site/ijcsis/ISSN 1947-5500

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