Optimal End-of-Life Management in Closed-Loop Supply Chains Using RFID and Sensors

Abstract

Wireless communication and monitoring devices, namely, radio frequency identification (RFID) tags and sensors, capture and store dynamic life-cycle information during the economic life of the products. RFID tags deliver this information to a computer system when the products are returned to disassembly centers in a closed loop supply chain (CLSC) system. By means of this technology, content of each product and component conditions are known without disassembly and inspection. Life cycle information also makes it possible to estimate the remaining life of the components and enables the fulfillment of remaining lifetime-based demands. This paper presents an Advanced Repair-to-Order and Disassembly-to-Order (ARTODTO) model. ARTODTO model deals with the products that are embedded with sensors and RFID tags. The goal of the proposed model is to determine how to process each and every end-of-life product (EOLP) on hand to meet used product and component demands as well as recycled material demand. The model considers disassembly, repair, and recycling options for each EOLP in order to satisfy material and remaining-life-time-based (sophisticated) component/product demands and minimize the total cost. Outside component procurement option is also assumed to be available.