Bullwhip effect in closed-loop supply chains with multiple reverse flows: a simulation study

Abstract Due to the complex nature of some products and different quality returns, in closed-loop supply chains there might be types reverse processes flows, including repaired, refurbished, remanufactured, or recycled goods. These reprocessed goods return echelons chain according their quality, volume each type flow ( i.e. returns share) may significantly vary between chains, affecting dynamic behaviour entire system. The aim this work is explore impact among multiple flows a where member can have its own flow. We analyse four-echelon chain, collector charge collecting inspecting sending them depending on quality. An agent-based simulation model considering rates, coefficient variations for forward lead times, share developed evaluated terms bullwhip effect. observe that considerable medium–low enable effect reduction systems are shared all members chain. However, single moderate high preferable gain improvements both order inventory variability. From managerial point view, we provide useful recommendations companies adopting closed-loop.