Critical Barriers in Reverse Logistics Implementation: Case Study on Construction Machinery Remanufacturing Company in Indonesia
Abstract
Increasing customer awareness of environmental issues, including awareness of the decreasing capacity of landfills for final disposal, requires industries puts more thought into the reverse logistics (RL) process. Implementing this process requires an in-depth study, especially on barriers to implementing an effective RL system. Based on these problems, this study aims to analyze the RL system's barriers, especially in Indonesian construction machinery remanufacturing companies. In general, the barriers to implementing an effective RL system are categorized as internal and external barriers. Data gathering was carried out to identify internal and external barriers to implementing an effective RL system in construction machinery remanufacturing companies. This step was carried out through literature studies, interviews with academics and practitioners in the field of RL systems, and distributing questionnaires. Furthermore, the Analytical Hierarchy Process (AHP) approach ranks the barriers to implementing the RL system, which is a priority for construction machinery remanufacturing companies. This research contributes to a compilation of RL system barriers, especially in the construction machinery remanufacturing industry. The result analysis using AHP showed that the priority score of criteria activity front-end is the biggest.
Keywords
Full Text:
PDFReferences
M. Matsumoto and W. Ijomah, “Handbook of Sustainable Engineering,” Handb. Sustain. Eng., pp. 1149–1173, 2013.
R. Ayres, G. Ferrer, and T. Van Leynseele, “Eco-efficiency, asset recovery and remanufacturing,” Eur. Manag. J., vol. 15, no. 5, pp. 557–574, 1997.
S. K. Sharma, B. N. Panda, S. S. Mahapatra, and S. Sahu, “Analysis of Barriers for Reverse Logistics: An Indian Perspective,” Int. J. Model. Optim., vol. 1, no. 2, pp. 101–106, 2011.
T. Zhang, J. Chu, X. Wang, X. Liu, and P. Cui, “Development pattern and enhancing system of automotive components remanufacturing industry in China,” Resour. Conserv. Recycl., vol. 55, no. 6, pp. 613–622, 2011.
D. and Rogers and R. Tibben-Lembke, Going Backwards : Reverse Logistics Trends and Practices. 1998.
V. D. R. Guide and L. N. Van Wassenhove, “The Evolution of Closed-Loop Supply Chain Research,” Oper. Res., vol. 57, no. 1, pp. 10–18, 2009.
K. Govindan and H. Soleimani, “A review of reverse logistics and closed-loop supply chains: a Journal of Cleaner Production focus,” J. Clean. Prod., 2017.
J. Heydari, K. Govindan, and A. Jafari, “Reverse and closed-loop supply chain coordination by considering government role,” Transp. Res. Part D Transp. Environ., 2017.
T. L. Saaty, Fundamentals of Decision Making and Priority Theory With The Analytic Hierarchy Process. Pittsburgh, PA: RWS Publications, 2000.
N. Subramanian and R. Ramanathan, “A review of applications of Analytic Hierarchy Process in operations management,” Int. J. Prod. Econ., vol. 138, no. 2, pp. 215–241, 2012.
T. J. Kull and S. Talluri, “A supply risk reduction model using integrated multicriteria decision making,” IEEE Trans. Eng. Manag., vol. 55, no. 3, pp. 409–419, 2008.
A. Zouggari and L. Benyoucef, “Simulation based fuzzy TOPSIS approach for group multi-criteria supplier selection problem,” Eng. Appl. Artif. Intell., vol. 25, no. 3, pp. 507–519, 2012.
S. Koul and R. Verma, “Dynamic vendor selection based on fuzzy AHP,” J. Manuf. Technol. Manag., vol. 22, no. 8, pp. 963–971, 2011.
A. N. Haq and G. Kannan, “Fuzzy analytical hierarchy process for evaluating and selecting a vendor in a supply chain model,” Int. J. Adv. Manuf. Technol., vol. 29, no. 7–8, pp. 826–835, 2006.
J. J. Wang and D. L. Yang, “Using a hybrid multi-criteria decision aid method for information systems outsourcing,” Comput. Oper. Res., vol. 34, no. 12, pp. 3691–3700, 2007.
W. H. Tsai and S. J. Hung, “Dynamic pricing and revenue management process in Internet retailing under uncertainty: An integrated real options approach,” Omega, vol. 37, no. 2, pp. 471–481, 2009.
O. Cakir and M. S. Canbolat, “A web-based decision support system for multi-criteria inventory classification using fuzzy AHP methodology,” Expert Syst. Appl., vol. 35, no. 3, pp. 1367–1378, 2008.
A. Hadi-Vencheh and A. Mohamadghasemi, “A fuzzy AHP-DEA approach for multiple criteria ABC inventory classification,” Expert Syst. Appl., vol. 38, no. 4, pp. 3346–3352, 2011.
F. Lolli, A. Ishizaka, and R. Gamberini, “New AHP-based approaches for multi-criteria inventory classification,” Int. J. Prod. Econ., vol. 156, pp. 62–74, 2014.
P. González-Torre, M. Álvarez, J. Sarkis, and B. Adenso-Díaz, “Barriers to the implementation of environmentally oriented reverse logistics: evidence from the automotive industry sector,” Br. J. Manag., vol. 21, no. 4, pp. 889–904, 2010.
S. K. Srivastava, “Value recovery network design for product returns,” Int. J. Phys. Distrib. Logist. Manag., vol. 38, no. 4, pp. 311–331, 2008.
S. Luthra, V. Kumar, S. Kumar, and A. Haleem, “Barriers to implement green supply chain management in automobile industry using interpretive structural modeling technique-an Indian perspective,” J. Ind. Eng. Manag., vol. 4, no. 2, pp. 231–257, 2011.
S. Luthra, D. Garg, and A. Haleem, “An analysis of interactions among critical success factors to implement green supply chain management towards sustainability: An Indian perspective,” Resour. Policy, 2015.
C. Walsh and P. Thornley, “Barriers to improving energy efficiency within the process industries with a focus on low grade heat utilisation,” J. Clean. Prod., vol. 23, no. 1, pp. 138–146, 2012.
G. C. Wooi and S. Zailani, “Green Supply Chain Initiatives: Investigation
on the Barriers in the Context of SMEs in Malaysia,” Int. Bus. Manag., vol. 4, no. 1, pp. 20–27, 2010.
M. D. Abdulrahman, A. Gunasekaran, and N. Subramanian, “Critical barriers in implementing reverse logistics in the Chinese manufacturing sectors,” Int. J. Prod. Econ., vol. 147, no. PART B, pp. 460–471, 2014.
C.-H. Wu, “Price and service competition between new and remanufactured products in a two-echelon supply chain,” Int. J. Prod. Econ., vol. 140, no. 1, pp. 496–507, Nov. 2012.
S. Statham, “Remanufacturing – Towards a More Sustainable Future,” Electron. Enabled Prod. Knowledge-trans. Netw., pp. 1–24, 2006.
S. Barker and A. King, “Organizing reuse: managing the process of design for remanufacture (DFR),” Proc. POMS 18th Annu. Conf., no. 007, 2007.
N. Choudhary and N. K. Singh, “Remanufacturing in India: Approaches, Potentials & Technical challenges,” Int. J. Ind. Eng. Technol., vol. 3, no. 3, pp. 223–227, 2011.
R. Subramoniam, D. Huisingh, and R. Babu, “Remanufacturing for the automotive aftermarket-strategic factors : literature review and future research needs,” J. Clean. Prod., vol. 17, no. 13, pp. 1163–1174, 2009.
M. R. Galbreth and J. D. Blackburn, “Optimal acquisition quantities in remanufacturing with condition uncertainty,” Prod. Oper. Manag., vol. 19, no. 1, pp. 61–69, 2010.
S. Liu, D. Kasturiratne, and J. Moizer, “A hub-and-spoke model for multi-dimensional integration of green marketing and sustainable supply chain management,” Ind. Mark. Manag., vol. 41, no. 4, pp. 581–588, 2012.
M. S. Bhatia and R. K. Srivastava, “Resources , Conservation & Recycling Analysis of external barriers to remanufacturing using grey-DEMATEL approach : An Indian perspective,” Resour. Conserv. Recycl., vol. 136, no. February, pp. 79–87, 2018.
J. Zhao, “Whither the car? China’s automobile industry and cleaner vehicle technologies,” Dev. Change, vol. 37, no. 1, pp. 121–144, 2006.
K. Govindan, M. Kaliyan, and D. Kannan, “Barriers analysis for green supply chain management implementation in Indian industries using analytic hierarchy process,” Intern. J. Prod. Econ., vol. 147, pp. 555–568, 2014.
S. Mondal and K. Mukherjee, “An empirical investigation on the feasibility of remanufacturing activities in the Indian economy,” Int. J. Bus. Environ., vol. 1, no. 1, pp. 70–88, 2006.
E. Yuliawati, P. Pratikto, S. Sugiono, and O. Novareza, “A Review of Structural Relationships in Closed-Loop Supply Chain Model,” IPTEK J. Proc. Ser., vol. 0, no. 6, pp. 90–97, 2018.
DOI: https://doi.org/10.31284/j.iptek.2021.v25i2.1429
Refbacks
- There are currently no refbacks.