Abstract

Sustainable production has become a significant concern over recent years due to environmental considerations and material scarcity. Consequently, the closed-loop supply chain concept has been developed to reduce waste, decrease environmental issues, and maximize material utilization. Manufacturers attempt to add different recovery strategies to the traditional production system and close the forward production flow to create a closed-loop supply chain. In this research, a hybrid production system applied in an electronics manufacturing company is studied. Two recovery strategies, remanufacturing and recycling, are considered to make a hybrid production system. Although remanufacturing and recycling are recognized in the literature as promising recovery strategies, the profitability of using them for the manufacturers is still controversial. This research presents a system dynamics model addressing the analysis of a hybrid production system in an electronics manufacturing company. The objective of the system dynamics simulation is to evaluate impacts resulting from using remanufacturing and recycling on two critical parameters, including total profit and cost per unit. For this purpose, the model is run using parameters and information related to a laptop manufacturing company to compare production scenarios, evaluate the system performance in terms of economic benefits, and provide insights for policymakers for designing policies that align with the manufacturers' benefits.