Supply chain resilience for managing the ripple effect in Industry 4.0 for green product diffusion

What is it about?

The present research attempts to model the reverse logistics and examine how the disruption and thereby the ripple effect caused by the uncertainty in diffusion of green products effect the environmental, service levels, and economic performances. The performance are studied viá integration of inventory and production planning (I&PP) of a sustainable logistics system and consumer behavior using classic Bass (1969) model of diffusion of innovation under the paradigm of Industry 4.0 architecture. The model is analyzed by systematical deployment of information-sharing mechanisms and I&PP policies. The key features of Industry 4.0, which are characterized by virtualization of reverse supply chain operations and the distributed production. Features of additive manufacturing are exploited using simulation model which uses Taguchi experimental design framework. The adoption patterns based on promotional incentives, which are used as a recovery speed option during disruption period, suggest tradeoff decisions between environmental, service levels, and economic performances for various combinations of information-sharing and I&PP policies. An extensive sensitivity analysis shows the robustness of the model. The results show potentials of Industry 4.0 capabilities for mitigating the effect of disruption, a close attention to the promotional incentives for the recovery speed should be paid in conjunction with the inventory management system. Accordingly, the model exhibits a real-time decision support tool for the disruption in reverse logistics under the Industry 4.0 environment.

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