Title: Theory of constraints for recycling automobile tyres in the reverse logistics system

Authors: Yuxiang Yang, Hokey Min, Gengui Zhou

Addresses: College of Business Administration, Zhejiang University of Technology, Hangzhou 310014, P.R. China. ' Department of Management, College of Business Administration, Bowling Green State University, Bowling Green, Ohio 43403, USA. ' College of Business Administration, Zhejiang University of Technology, Hangzhou 310014, P.R. China

Abstract: In the era of global financial crisis, every penny counts. Thus, the exclusive use of virgin materials for production no longer makes economic sense. As a viable alternative to the use of virgin materials, recycling has become a popular business practice. Recycling, however, requires dramatic changes in business paradigms that include the coordination of both forward and reverse logistics flows, the substitution of disposal for salvage, and the tracing of products throughout their entire life cycles. These changes are often preceded by cultural changes across the supply chain. To embark on the successful change in reverse logistics activities, this paper proposes a Theory of Constraints (TOC) that can map necessary changes in the supply chain and guide those changes within various system constraints. The usefulness of TOC is validated by applying it to the recycling processes of automobile tyres in the burgeoning Chinese automobile industry.

Keywords: TOC; theory of constraints; reverse logistics; supply chain management; SCM; linear programming; automotive tyres; recycling; automobile industry; China.

DOI: 10.1504/IJISM.2009.029359

International Journal of Integrated Supply Management, 2009 Vol.5 No.2, pp.158 - 172

Published online: 22 Nov 2009 *

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