Reverse Logistics System of Waste Electronic and Electric Equipment

Reverse Logistics System of Waste Electronic and Electric Equipment
Zhang Hanjiang , Huang Hengwei
College of Economics and Trade, Hunan University, P.R.China, 410079
Hunan Provincial Laboratory of Logistics Information and Simulation Technology
Abstract: The report published in 2005 of EU pointed out that global Waste Electronic and
Electrical Equipment Waste Electronic and Electricity (WEEE) increased by 16%-28% every 5
years. Due to the recycling and de-manufacture processing technology, China falls behind at present and
creates the extremely serious resources waste. In this paper, the entire product life cycle process with
consumers, producers, distributors and the government, the respective powers and the system of benefits
for the analysis of economics, the social costs to a minimum goal of “Who produces, who bears
responsibility” and “who benefits, who pays” system design principles and the corresponding supply
chain product liability structure, recovery mechanism in the electronic and electrical equipment
producers take back, pooled take back and third-party take back management model based on an
economic analysis, has been the development of related industries and the principle of choice. This
paper introduced the Reverse Logistics Management WEEE collection network, processing options, as
well as the distribution of information feedback loop and the creation and expansion of the SCOR model,
re-use and recycling flow separate management. Electrical and electronic equipment for recycling and
efficient use of benefit is of vital significance.
Key words: Reverse logistics management system, Collection network, Processing stage,
Distribution, Information system
1.Introduction
The report published in 2005 of EU points out that global Waste Electronic and Electrical Equipment
(WEEE) increased by 16%-28% every 5 years. Waste electrical and electronic equipment containing lead,
chromium, mercury, cadmium and other heavy metals and Brominated flame retardants, freon and other
toxic substances, such as general demolition landfill and incineration and simple treatment could lead to a
serious potential environmental hazards. If proper disposal, the waste of raw materials and precious
metals such as gold, silver, nickel and other natural mineral content is much higher than through recovery,
recycling and reuse can save resources and avoid over-exploitation of indigenous resources. To this end
the EU has also called the “Directive on Waste Electronic Electrical Equipment (WEEE)”the instructions
from the manufacturer on August 13, 2005 up to be responsible for the collection and recycling system,
and retailers to recover the costs of recycling systems. Other countries export European Union the
electronic electricity product also inevitably to have to face WEEE. China in 2003 electronic electric
appliance equipment total export 227.46 billion US dollars, account for the entire export amount 51.9%,
has 70% in these exportation is the European market [1]. China's machinery and electronics exporters will
estimate (2005), China's future will be directly affected by the electrical product exports 31.7 billion U.S.
dollars, China's exports of mechanical and electrical products accounted for 71% of GDP. China has yet to
establish a standard WEEE Recycling System, the current recovery is driven by the interests of the
spontaneous and disorderly recovery and backward demolition of the original will cause a serious waste of
resources and environmental pollution.
A. J. Spicer other [2][3] Reverse Logistics Management introduced the three WEEE recycling mode, the
mode of operation of the third-party recovery process and the advantages in relation to other models, and
both the enterprises and the whole society are more favorable third-party recovery mode Finally, a case of
a well-known third-party enterprise Renewit recovery is the success of the market in North America and
Europe. He did not study in the management of three models based on the economic analysis carried out
without taking into account the social costs of increased specialization and production recall the additional
cost savings. Christian Seeberg Braun [4] introduced the Danish beverage bottle recycling deposit case,
but had not proposed how returns this method application in the enterprise deposit the mechanism in the
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establishment. Hallmann [5] introduced how establishes the public information platform solution to
abandon inside the electron electrical equipment processing flow the information flow question, But does
not have the detailed introduction and circulates again in the disassemblage the concrete information as
well as the information demand which in each link needs. Supply chain operations reference model [6] is
the development of the supply chain Association and an authority on the supply chain
management-industry standards, which cover all users of all transactions, orders submitted to the
settlement payment, all transmission of material from the supplier's supplier to the user's customers are
from the collection needs to understand and to meet every order. Five basic work flow is, plan,
manufacture, delivery, refund. But here is the return of the wrong products and the broadest sense of the
need to protect the product recall, the recall does not include Reverse Logistics, reuse and recycling and so
on. Moritz Fleischmann[7] put into scrap recycling electronic and electrical products reverse logistics
management channels, production planning and inventory management, but he made no further use of
WEEE Reverse Logistics Management flow recirculation flow and separate management.
This text carries on the economics analysis in foundation of three kinds of modes : manufacturer's tack
back, the consociation tack back and the third party tack back, getting the related principle of industry
development and choice. Synthesized to introduce the WEEE collections network of the reverse logistics,
handle to choose the method, and retail again and the establishment of the information feedback loop, and
expanded the model of SCOR, put forward make use of again to flow and flow circularly again separately
suggestion of management. This text can provide thorough the understanding of abandoning the
electronics electricity equipments reverse logistics process and characteristics, making an effort the norm
to discard the old electronics product recovery processing system, reducing the cost and increasing the
income and raising to handle the efficiency, carrying out the development circulation economy and the
resources recycling.
2. The manufacturer's responsibility extension analysis in system economics
A product, from design to the completion of the use of retired, experiences a design, material acquisition,
processing, circulation, marketing, consumption and the use of recycled and other retired life cycle
process that involves producers, consumers, circulation vendors and other actors during the adjustment of
interests and a code of conduct is a typical system economics research. The government is in the interest
of society as a whole. Its major task is to develop new markets, and regulate market behavior. To improve
the environment for target systems, and methods of the consumer society as a whole, the rule must be
adopted by the government to create new markets, “Who produces,who bears responsibility” and “who
benefits,who pays” systems is the lowest cost arrangement. Producers to participate in the recovery, the
advantages of coming from dismantling them to better understand the whole design of our products, and
technological ideas and the use of materials, and a corresponding support personnel, to search for product
information to reduce costs, the cost of confidentiality and exclusive nature of the fixed assets and
technology research and development costs and other extra costs. “Who benefits,who paids” is the basic
assumptions of economics, consumers and dealers that are the beneficiaries of the improved environment,
consumers and dealers to be returned intact obligation to ensure waste products, and through other forms
of payment of costs or prices.(figure 1)
Extended Producer Responsibility(EPR) is one kind of main System based on the modern environment
management principle, in order to realize product system environment performance improvement. It
requests the producer not only to have the environmental pollution which produces to the production
process in to be responsible, moreover must be responsible for in the product entire life cycle
environmental effect, carries on the recycling in particular to the life cycle terminal product, circulates
again, uses and reject processing again. The environmental effect falls to is lowest. Entire social all
members manifest for all consumers profit.
，
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Supply
Design&Development
Production
Production
Planning&Control
Distribution
Marketing
consumption
End of life
Repair
Collection
Demamufac-tur
ing Information
Feedback
Information
Recovery
Business management
Ddistribution
recycle
reuse
desposal
Figure 1 product supply chain responsibility framework
3. Reverse Logistics System of Waste Electronic and Electric Equipment under
EPR
Most of the traditional demolition waste products only (if needed), incineration or landfill is considered to
be a direct throw—away their pollution to the environment These tasks are handled by professional
organizations to complete. These activities constitute the final stage of the product life cycle. But now,
under the guidance of the EPR, manufacturers need to recover and handle their products, they must
consider the costs and benefits of their choice, the choice of a new terminal to the domestic producers
from the material flow. Even third-party organizations will join the system instead of dismantling and
recycling of their work, producers need to consider the process of dismantling and recycling information
feedback. Reverse Logistics Management consider the material flow and information flow, constitute the
entire supply chain, including the entire life cycle of products.
3.1 Flow chart of WEEE reverse logistics
Taking into account the life cycle of demolition and recycling of end products, it is a whole supply chain
integration, the end product life cycle management system includes three areas of reverse logistics,
collection, treatment options, as well as the distribution of specific processes (Figure 2).
。
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supplier
producer
distributor
customer
Secondary market
product reuse
product reuse
whole
Combined
processing
center
（maintenance、disassemble、sort、test）
whole
collect
collect
Material
reuse
Bulk reuse
collect
Poisonous or non
enable-reuse
materials
Land fill
disposed,burn
other process
Figure 2 Flow chart of WEEE reverse logistics
3.2 Tack back mode and network
Return by the manufacturer's network of distributors and retailers; Commercial end-users; Family objects
constitute the end-user, the recovery of the main channel including:
(1)The expansion of the existing waste channels. Rural and regional areas under different systems,
including the roadside recovery and collection system, the local collection site, consumers can waste
reach these places.
(2) As retail shops and recycling channels. When buying products, consumers must be returned to a
similar older products, retailers know temporarily preserve old products processing enterprises or other
institutions to recovery.
(3)The recovery of independent agencies. Establishment of a joint collection system or join the collection
of different options including the creation of the recovery centers.
(4) All the above methods of mixing.
System including network design, the flow of information, transportation, inventory, material handling,
packaging and other activities, through the use of products from waste products such as processing, then
enter the market, including dealing with the above-mentioned four areas.
Collection is the end product life cycle and to benefit from the recovery efficiency of the infrastructure
obstacles is the lack of an orderly reverse logistics and transportation management system and the high
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cost of collection. The next step is to make collection of waste products arriving in the middle stage of the
process of dealing with that broad sense, including the purchase of the collection, transport and storage.
There are three models : the potential recovery network manufacturers to recall, the joint third-party
recovery and recycling. Producer: The producer is the advantage of the recovery model to better
understand the whole design of our products, and technological ideas and the use of materials, and a
corresponding support personnel, in order to better achieve the economic cycle of a resource-saving and
environmentally friendly goals. Producer recycling can reduce the cost of searching for product
information and confidential cost, the exclusive nature of the fixed assets and technology research and
development costs and other extra costs.
The union recycling pattern is the recycling which in the electronic electric appliance product the different
industry carries on, for instance abandons electronic electric appliance equipment the and so on the
computer, handset keyboard disassembles processing. Because the union recycling is a pattern which
manages together, in order to protect in respective product design the secret, a miscarriage industry only
can recycle processes a brand the product, For instance the Sony numerical code camera and the camera
lens disassemblage may adopt the union recycling the pattern; The third party recycling pattern is the
recycling which the similar industry carries on, because is third party processing, only can choose the
same industry not to be able to divulge the product design secret these links, for instance Nokia and the
Motorola handset keyboard disassembles may give the identical third party keyboard to disassemble
business processing.
3.3 After collection processing
Take an overall product the again use. The product also has the very good use value, passes through the
simple service to return to the consumer or to buy two markets or the donation. Product spare part again
use The service already did not have any economical significance, the processing cost was bigger than
the economic value which the product two time sold, or the product already did not have the demand, the
product was allowed to open the spare part (if spare part also had use value). Some also have the use value
in the disassemblage stage the material, for instance noble metal plastic separation for not continual flow,
This flow has the economic value, displays enough arouses the market interest in the quantity and the
quality, needs the further processing, melts including the smashing further examines and so on.As well as
is left over the part burns down fills in buries. So long as is the again use matter finally processing
behavior which cannot be recycled, is left over the class process burns down fills in buries or directly
regards as trash to discard.
And forward logistics, special goal-oriented products, and recycling of demolition process is the input and
output instability from different ends of the life cycle of consumer products to establish collection
networks, the situation of these products is uncertain, while the demolition of the domestic situation is
different. Some consumer products after a simple return or repair complex after entering the secondary
market, some products have been used at different levels after the demolition of the original
manufacturers in the process of re-creating some products and materials can be used for the part of the raw
materials used to manufacture them. Some product components and materials used in the manufacture of
raw materials to be used, finally, some due to technical and economic reasons, can not handle this with
some sound processing methods, such as incineration of landfill disposal. Therefore, the demolition
before choosing to go through a stage of analysis, with the forward logistics which is similar to the design
phase of product development.
SCOR contained in the latest version of the core areas of return, but only focus on product sales services,
such as maintenance and repair. But on the key issue of the potential of the process had been omitted, and
further, the waste disposal process has not been taken into account, which related to the specific
description essential process (figure 3) :
We spent on the treatment is divided into two core functions, a function of the waste materials and toxic
substances, the second function is valuable parts and the use of recycled materials. Waste materials and
toxic substances, we can be seen as the product inventory, as is the total random. We can be as valuable
materials and parts inventory under orders to produce goods and products produced by a combination of
the two, because the hand is determined. If the repair of complex modules and components, design and
testing process, in accordance with orders designed and manufactured products will be achieved in this
，
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process. But in which we have not considered.
Re-distribution, including the distribution and delivery of the waste materials and toxic substances,
delivery and parts, the use of recycled materials delivered value is different, the former are random, which
also include orders for delivery.
r
o
ss
e
c
o
r
p
t
x
e
N
P1plan supply chain
P2 plan source
P3 plan make
r
e
m
o
t
s
u
c
P4 plan deliver
P5 plan return
Re-distribution
RD1
Re-distribution
treatment to
Stocked
treatment
collection
T1 treatment to
Stocked
T2 treatment
RD2
to order
C1 collection
treatment to
Stocked
C2 collection
treatment to
order
Re-distribution
Treatment to order
processor
Figure 3 Integrate reverse logistics into SCOR
3.4 Further distribution
The end product life cycle after the dismantling and recycling of re-distribution of products related to the
direct re-use of parts and materials, the next they served customers, including incineration and landfill
shipped to the remaining part of the process. This part of the logistics management information needs and
the positive is the same.
4．Conclusion
In this paper, the entire product life cycle process with consumers, producers, distributors and the
government, the respective powers and the system of benefits for the analysis of economics, the social
costs to a minimum goal of "whoever who is responsible for production" and "income pays" system
design principles and the corresponding supply chain product liability structure, scrap recovery
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mechanism in the electronic and electrical equipment producers recovery, the recovery of three joint
recovery and third-party management model based on an economic analysis, has been the development of
related industries and the principle of choice. Reverse Logistics Management has integrated the WEEE
collection network, processing options, as well as the distribution of information feedback loop and the
creation and expansion of the SCOR model, re-use and recycling flow separate flow management.
Electrical and electronic equipment for recycling and efficient use of the benefit is of vital significance
。
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