Resource title

The Impact of constraints in closed-loop supply chains: the case of reusing components in durable goods

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Current production and consumption systems of industrial societies rely on levels of material and energy throughput that are believed to be unsustainable by many experts. There is widespread agreement that the problems connected with excessive primary resource consumption and waste generation will not be solved without substantial increase of reuse and recycling. Examples like the ratified or planned EU directives on landfill, packaging, end-of-life vehicles and waste electrical and electronic equipment show that policy makers increase their efforts to encourage or enforce higher levels of recovery. However, the conventional wisdom that more reuse and recycling is always better than less does not withstand critical examination. Environmental evaluation of actual or planned reuse and recycling loops is necessary to assess if and when these loops reduce the total environmental burden of the overall supply chain. It is important to be aware of the extent to which the underlying modelling methodology can impact the assessment results. In this paper the authors examine how constraints in closed-loop supply chains can influence their environmental performance and present a detailed discussion of two of them for the case of component reuse in durable goods.

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en

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application/pdf

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http://flora.insead.edu/fichiersti_wp/inseadwp2002/2002-131.pdf

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Copyright INSEAD. All rights reserved