Closed loop supply chains – A study of US and Japanese car industries

Article type: Research Article

Authors: Kumar, Sameer^{; *} | Yamaoka, Teruyuki

Affiliations: College of Business, University of St. Thomas, Mail # TMH 343, 1000 LaSalle Avenue, Minneapolis, MN 55403-2005, USA. Tel.: 651 962 4350; E-mail: skumar@stthomas.edu

Correspondence: [*] Corresponding author.

Abstract: System dynamics (SD) modeling approach is used to study the US and Japanese car industries' closed loop supply chains. The state of car recycling in the US and Japan and also end of life vehicle (ELV) regulation in Japan are reviewed. Disposal of cars that reach end of life phase in the US and Japan and export of used cars to emerging economies including potential threats to car manufacturers in these economies are examined. Relationships between reduce, reuse, recycle and disposal in the US and Japanese car markets are explored with base scenario analysis using the car consumption data and forecasts. The SD model was also subjected to extreme conditions test for structural validity. Dynamic analysis of different market scenarios for the US and Japanese reverse supply chains are also conducted. The study shows government regulations can have a significant impact on the car industries' reverse supply chains in the US and Japan.

Keywords: Closed loop supply chain, reverse supply chain, reverse logistics, end of life vehicle regulation, Japanese car recycling law, system dynamics, recycle, re-use

DOI: 10.3233/HSM-2006-25104

Journal: Human Systems Management, vol. 25, no. 1, pp. 51-70, 2006