Greening Your Reverse Logistics

Picture source: www.achievereducation.org

BY: ALI HAJI VAHABZADEH AND ROSNAH BINTI MOHD YUSUFF

Industrial Engineer Volume 44 Number 12

Reverse logistics programs can be used to increase competitiveness and gain strategic advances. The progress that has been made can be seen by the historical path of environment management. Green can be defined as implementing all environmentally friendly processes during the life cycle of a product for the purpose of minimizing the negative effects of the environment.

Green reverse logistics the process of managing returns, including different types of materials, and transportation from the point of consumption to the point of origin to minimize the destructive effects on environment.

A conceptual decision-making model based on the cost analysis and quality management methods can lessen the possibility that officials wrong decisions that minimize returns. In addition, the companies can ascertain that their decisions on what get returned to where have minimal effects on the environment. The activity based costing (ABC) method can identify the different types of cost elements in various steps of the reverse logistics process.

Categorizing the quality of returns is another critical factor in this modeling. The four steps involved in this methodology and their explanations follow: identifying the cost objects and activity types in each reverse logistics step based on the ABC method, defining the different cost involved in each of the decision options available in reverse logistics, categorizing the quality of the returned goods, components or materials, conceptualizing the decision-making process in reverse logistics.

The decision-making odel provide here can help evaluate and implement the concept of cradle-to-cradle manufacturing . The logical decision-making model can help companies comply with the pressure of new government regulations. Remanufacturing and recycling would help business retain the value of their products and part assemblies. Making the right decision means limiting the destructive effects of environments waste that fill landfills, curbing toxic gas emissions from unnecessary transportation, and not wasting time, space and money by storing unneeded scrap.

BY:

Aditya Hartaji (1501188864)

Ahmad Faisal (1501206305)

Asyifa Febrinasari (1501203890)

Kelvin Thanaka (1501185944)

Pilamupih Dwi Rahayu (1501201411)

Ryan Reinaldo (1501185894)

Willy Suhandy (1501151331)