Write a minimum of a four-page paper, plus the title page and a reference page on the following statement:
1. To complete this Case Study: Reverse Logistics primarily concerns itself with recovering material and/or economic value from products which are at the end of their useful life. This class will familiarize participants with motives, theory, and practical application, using a variety of sources including textbooks and case studies as well as scientific literature.

2. Review Managing Reverse Logistics reading text and specifically, CH 3 Case studies. Choose a case Study, review the information and pull together the past exercises to develop your methodology and supporting methods to either agree or disagree with the Case Study. Explain your reasoning in an APA style paper of 1-2 pages. Write your Case study in a memorandum format, with a business header, Include the Case Study problem statement; You do not need to post Case Study Response to the Discussion Folder, You will be graded on Content, Understanding, Timeliness, Critical Thinking, Correctness of Writing.

– Readings: SPMR – Managing Reverse Logistics deBrito – CH 3; LO – 1-13

– Read readings your chosen Case Study.

– Post your Case Study to the Assignments Folder

– Then read your Case Study.

– ______________.

– Identify, assess, analyze and solve problems related to supply chain management

Issues.

Understand the concepts and vocabulary of the Reverse Logistics discipline
– Develop and apply research skills appropriate to the requirements of the unit and discipline

– Understand how the concepts of related management disciplines are applied in the development of Reverse Logistics problems

– Understand and apply the concepts learned to L&SCM problems and support their solutions with logical argument

– Communicate an understanding of the unit’s concepts and their application in written and verbal/ presentation media

– To develop individual intellectual inquiry and application skills

– To demonstrate the realization of these outcomes by achieving an adequate overall standard in the assessment process

ANSWER

Reverse Logistics Management and Operations: Case Study

TO: write the name, their job title

FROM: write your name, job title

DATE: February 16, 2021

SUBJECT: Product Recovery Network Uncertainties as a Primary Reverse Logistics Issue and Challenge for Effective Supply Chain Management

The chosen case study for analysis and assessment is conducted by Listes & Dekker (2005) regarding the application of the stochastic approach in the evaluation of uncertainties presented in a sand recycling product recovery network design in reverse logistics in the Netherlands. The authors discuss how a recovery network design could be stochastic in the recycling or reusing sand acquired from the crushed and sieved construction waste in large-scale infrastructure projects such as road constructions. The case study presents a major problem, which includes the uncertainties and difficulties in determining the logistical costs associated with network design as well as the number and location of the sand depots and cleaning facilities (Listes & Dekker, 2005). Therefore, this memorandum agrees with the authors and case study that uncertainty in product recovery networks (PRNs) is a primary reverse logistics issue and challenge for effective Supply Chain Management. Product Recovery Networks entail many processes that present numerous challenges in the reverse logistics supply chain, including cost-pricing, resource availability, capacity, demand-supply issues, and product recovery complexities.

The author’s case study involves the recycling and reusing of sand that originates from crushed and sieved construction waste. Initially, this sand was landfilled; however, Netherlands’ legislation forbade landfilling with the sand and prescribed recycling due to the toxicities and poly-aromatic carbonate pollutants (Listes & Dekker, 2005). The legislation recommends reverse logistics in the construction industry, where companies should adopt the recovery of the pollutant crushed and sieved sand from large-scale construction projects, recycle and reuse the material to recapture and regain its economic value or for the sand that is extremely toxic and non-reusable adequately disposed of (Corrêa & Xavier, 2013). Environmentally, landfilling of toxic and pollutant sand is devastating for the environment as when liquid fills up these landfills, the sand dissolves, forming poisonous compounds that can potentially contaminate the ground, the soil, and surface water bodies in the nearby areas (Vaverková, 2019). Moreover, toxic landfill gases due to chemical or biological processes resulting from decomposition can result in air pollution, causing direct and indirect adverse effects such as public health crises in nearby areas (Vaverková, 2019). In recycling the sand, the clean sand will be reused in construction, partly clean sand can be reused in specified and secure areas, and the polluted or toxic sand is cleaned to recapture its economic value (Listes & Dekker, 2005).

Uncertainty in Product Recovery Networks (PRNs) is a primary reverse logistics issue and challenge for effective Supply Chain Management. This is because product recovery networks entail many processes, including product acquisition, the actual reverse logistics, inspections, and dispositions, reconditioning, distribution, and sale, which all require logistical costs and uncertainties of demand points, supply sources, and overall SCM costs (Guide-Jr. & Wassenhove, 2002). According to Rubio & Jiménez-Parra (2014), product recovery design in reverse logistics involves three main activities: the colletcion of end-of-life products (EoU), inspection and classification, and finally, the actual recovery process, which is considered the key element in the reverse logistics network. This final activity includes reusing, remanufacturing, and recycling the EoU (Rubio & Jiménez-Parra, 2014). In product acquisition, it is vital to understand the demand points such as where the refined or recycled sand should go, including the quality, quantity, and product return timing to ensure an equilibrium of demand and supply, to create a valuable and profitable reverse logistics supply chain. In some instances, sand recycling companies may be flooded with construction waste sand that varies with its quality and pollutant composition, decreasing recycling efficiency or making it impossible to recycle (Guide-Jr. & Wassenhove, 2002). Some sand types may require different handling than other sand from a different source, making it uncertain whether the recycling will provide any economic value with a fixed product recovery design and network. Capacity management is crucial in supply chain management, and if the company involved in sand recycling expects profitability and market growth (Daugherty & Closs, 2016). Hence, based on the case study, the number of cleaning facilities should depend on the incoming quality of the sand and quantity. In contrast, the facilities’ location decision should depend on the demand points. It is vital that companies coordinate with source points retailers or distributors regarding the quality and quantity to eliminate impossibilities and other uncertainties for product recovery network’s efficiency.

In the sand’s actual reverse logistics and recycling, processes such as collection, transportation, inspection, sorting, and disposition are involved (Guide-Jr. & Wassenhove, 2002).  A company must identify the costs associated with the number of sand depots and adequate cleaning facilities as well as the transportation and warehousing or storage costs, as these tasks are labor-intensive, costly, and time-consuming. According to Daugherty & Closs (2016), in SCM, many companies are faced with product complexity issues where stock-keeping units begin to explode (Daugherty & Closs, 2016). As explained by the authors, in relation to the case study, in cases of high or low volumes, complexities are experienced in realizing effective end-of-life product recovery and inventory management (Listes & Dekker, 2005). Moreover, compliance becomes another challenge source, mainly because legislation influences the sand recycling project.

Uncertainties regarding the quality, quantity of the sand, and the demand points can alter the reverse logistics supply chain resulting in increased logistical costs of production: labor and actual recycling of the sand. In cases where logistical costs of production time and labor are high, it is expected that the distribution and sale of the recycled sand would be extensive, including higher prices to meet the reproduction costs. However, according to Rubio & Jimenez-Parra (2014), many customers would buy a remanufactured product (sand) from the OEM rather than the original product (sand) only at a lower price than the original price (Rubio & Jiménez-Parra, 2014). This shows that the complexities and uncertainties in the product recovery networks can increase costs throughout the reverse logistics supply chain, translating into losses for the company as the production costs are higher than the recycled product pricing.

In conclusion, uncertainties in the product recovery designs and networks can make the reverse logistics supply chain susceptible to many issues and challenges. These uncertainties are associated with the quantity and quality of the recovered product, time of return, and in the case study, the uncertainties of the logistical costs related to network design as well as the number and location of the sand depots and cleaning facilities (Listes & Dekker, 2005). Moreover, issues including cost-pricing, resource availability, capacity, demand-supply, and product recovery complexities (Daugherty & Closs, 2016) from the numerous recovery processes such as product acquisition, the actual reverse logistics, inspections, and dispositions, reconditioning, distribution, and sale (Guide-Jr. & Wassenhove, 2002) make the product recovery networks susceptible to uncertainties, which affects the entire supply chain management process.

References

Corrêa, H. L., & Xavier, L. H. (2013). Concepts, design and implementation of reverse logistics systems for sustainable supply chains in Brazil. Journal of Operations and Supply Chain Management, Vol 6(1), pp; 1-25.

Daugherty, P. J., & Closs, D. J. (2016). SUPPLY CHAIN ISSUES: WHAT’S KEEPING SUPPLY CHAIN MANAGERS AWAKE AT NIGHT? http://www.apics.org/docs/default-source/scc-non-research/supply-chain-issues.pdf?sfvrsn=2: APICS.

Guide-Jr., V. D., & Wassenhove, L. N. (2002, February). The Reverse Supply Chain. Retrieved from Harvard Business Review: https://hbr.org/2002/02/the-reverse-supply-chain

Listes, O., & Dekker, R. (2005). A stochastic approach to a case study for product recovery network design. European Journal of Operational Research, Vol 160, pp; 268-287.

Rubio, S., & Jiménez-Parra, B. (2014). Reverse Logistics: Overview and Challenges for Supply Chain Management. International Journal of Engineering Business Management, Vol 6(12), pp; 1-7.

Vaverková, M. D. (2019). Landfill Impacts on the Environment—Review. Geosciences, 9(10), 431; https://doi.org/10.3390/geosciences9100431.