Research of the Green Logistics for Recycling Cell Phone in Guangzhou

Research of the Green Logistics for Recycling Cell Phone in
Guangzhou
Yangjianhui Panhong
School of business administration,
South China University of technology, P.R.China, 510640
Abstract
With the improvement of the environmental sustainable development, the green logistics holds more and more important position. This paper introduces the birth and driving force of cellphone green logistics (CPGL) firstly. According to the particularity of the geographical position, economic status and the characteristics of electronics’ high expansion of Guangzhou, a mixed integer programming model is given to analyze the CPGL of Guangzhou, which is solved by Lingo7.0. As a result of
this study, it is certain that CPGL brings both economic benefits and social performance in the cellphone fields of Guangzhou. To expand the conclusion, it is obvious that GL is fit for other electronic
fields or even other industries. At last, operational strategies and network structures are coupled with the
model, which bring forward a future research framework.
Key words
reverse logistics, environmental logistics, LP model, performance analysis
1 Introduction
As the economic globalization and E-commerce, people pay more attention to the relationships
among mankind, environment and resources. Especially on the logistics field, traditional logistics is transformed into supply chain management (SCM), and developed a new research direction — green logistics. The GL refers to a kind of green economic management activity course which connects green
supply subject with green demand subject to satisfy customers, and also a effective, fast green goods and
service which overcomes hindrance in space and time flow[1]. Different from the GL, the RL is def- ined
as the process of planning, implementing, and controlling the efficiency, cost effective flow of raw
materials, in-process inventory, finished goods and related information from the point of consumption to
the point of origin for the purpose of recapturing value or proper disposal [2]. From both definitions, it is
obvious that RL doesn’t consider the environmental performances but only pursues financial pro- fits.
On the contrary, the GL not only reflects RL in substance, but also elevates it environmentally. At
present, Taiwan, American and Europe are accomplished in the GL. They utilize a multi-stages and multi-types mixed integer programming model which is based on the minimum cost goal, but our country
has few research methods or mathematics models[4][6]. This paper studies the CPGL in Guangzhou according to the particularity of the geographical position, economic status and the characteristics of
electronics’ high expansion of Guangzhou.
2 The birth and driving force of CPGL
CPGL is a cycling logistics composed of three processes--from manufacture to distribution, from
use to reclaim and from reproduction to resale. It starts with sustainable development theories, ecologyical economics theories, the ecological ethics theories, and relies on the green marketing measures and
logistics performance analysis. CPGL combined with the difficulties of cheap resource and conflicts between supply and demand will build an environmental recycling logistics. The driving force of GL includes two aspects: (1) the exterior driving force is regulations imposed by government. When a pollution accident occurred in Guiyu town in 2004, China Electronics Engineering Design Institute and Development and Reform Commission made the government set up the first special waste electronic
treatment plant and issue several regulations. (2) The interior driving force is the economic interests.
CPGL enterprises are apt to obtain authentication like ISO14000 Environment Management, which
helps break the green barrier and create favorable precondition for national increase in GDP.
With the improvement of people's living standard, the demand of the cell-phone increases yearly.
According to the report of China Statistics 2005.2, output of last year in our country reached to 245876
thousand pieces and the increasing ratio 29.1%. A survey issued by Advisory Organization of China Te-
202
lecom indicates there are 760 patterns in the market, but lifecycle of the most is only half a year. Guangzhou is regarded as the foreland of Reform and Opening-up, where the percentage of high income people is large and increases fast. Presently, CPGL in Guangzhou is only focused on the callback of batteries, not extended to the recycle. From this status, CPGL should be implemented from rich user to poor
user to reach the second-hand profits. As it relieves pressure for environment, it brings new economic
increasing point for the future development.
3 The mathematics model analysis of CPEL in Guangzhou
The analysis models of CPEL include LP method and systematic emulation. However, the former is
more general, which is based on the LP and software. This proposed model attempts to maximal the
total profits. The total income is from sale and resale, and the total outcome includes transportation cost,
operating cost, fixed cost and landfill cost[5]. Constraints are composed of Flow conservation, facility
capacity, a number limit for new facilities and non-negative constraints.
To facilitate model formulation, six assumptions are postulated:
(1) Reconstruct 4 collecting/disassembly plants based on the original logistics network according to
the latest zoning map of Guangzhou: Liwan, Yuexiu, Haizhu and Tianhe four districts set up one in
Yuexiu District; Baiyun and Huadu, Huangpu and Luogang, Panyu and Nansha separately set up one,
ignoring the reconstruction expense.
(2) Consider 4 reproducing plants similar to the former division, and account the fixed costs.
(3) Consider 3 redistribution plants in Tianhe, Baiyun and Panyu in the model of strategic alliance,
ignoring the fixed cost and operating cost.
(4) Set up a landfill plant in Baiyun District. Capacity is 200t a year and unit cost is 5000 Yuan/t.
(5) Suppose that the quantity of waste is related to the amount of productions, and the quantity from
each district is compared with consumer's quantity.
(6) Good condition proportion of retrieving is 0. 3. Scrapping rate of disassembly plant is 0. 1.
Scrapping rate of reproducing factory is: 0. 3.
Objective function:
4
4
4
4
4
4
MAX Z = Dr × LR − (∑ Ds × LS + ∑ Fp × Ip + ∑ Os × LS + ∑ Op × LP + ∑∑ C1× X 1
1
4
3
1
4
1
4
1
4
1
1
3
+ ∑∑ C 2 × X 2 + ∑ C 3 × X 3 + ∑ C 4 × X 4 + ∑∑ C 5 × X 5 + DW × LW )
1
1
1
1
1
1
Constraints:
(1) Flow conservation
Collecting/disassembly plant’s flow conservation constraint:
LS (i ) = X 1(i ,1) + X 1(i , 2) + X 1(i ,3) + X 1(i, 4) + X 3(i,1) + X 5(i,1) + X 5(i, 2) + X 5(i, 3)
Reproducing plant’s flow conservation constraint: LP (i ) = X 1(1, i ) + X 1(2, i ) + X 1(3, i ) + X 1(4, i )
Redistribution plant’s flow conservation constraint:
LR ( j ) = X 2(1, j ) + X 2(2, j ) + X 2(3, j ) + X 2(4, j ) + X 5(1, j ) + X 5(2, j ) + X 5(3, j ) + X 5(4, j )
Landfill plant’s flow conservation constraint:
LW = X 4(1,1) + X 4(2,1) + X 4(3,1) + X 4(4,1) + X 3(1,1) + X 3(2,1) + X 3(3,1) + X 3(4,1)
(2) Utilization ratio of the wasted product
The balance of proportion in good condition of retrieving: 0.3LS (i ) = X 5(i,1) + X 5(i, 2) + X 5(i ,3)
The balance of scrapping rate of reclaiming center: 0.1LS (i ) = X 3(i ,1)
The balance of scrapping rate of reproducing factory: 0.3LP (i ) = X 4(i ,1)
(3) Capacity constraints:
The capacity of collecting plant: LS (i ) ≤ Sss (i )
The capacity of reproducing plant: X 1(i,1) + X 1(i, 2) + X 1(i, 3) + X 1(i, 3) ≤ Sps(i ) × I P (i )
The capacity of redistribution plant:
203
X 2(1, i ) + X 2(2, i ) + X 2(3, i ) + X 2(4, i ) + X 5(1, i ) + X 5(2, i ) + X 5(3, i ) + X 5(4, i) ≤ Srs(i ) × Ir (i )
The capacity of landfill plant: LW ≤ Sws
(4) Non-negative decision variables. 0/1 integer variables: I P and I R .
The variables and parameters shown in the proposed model are summarized as follows:
s, p, r, w: subscript for collecting plant, recycling plant, redistribution plant and landfill plant
Ls, Lp, Lr, Lw: subscript for the workload of each plant
X1(s,p), X2(p,r), X3(s,w),X4(p,w), X5(s,r): subscript for transportation amount
C1, C2, C3, C4, C5: subscript for the unit transportation cost, 2yuan/km
Os, Op, Fp: subscript for the operating cost of collecting and reproducing plant, and the fixed cost
of recycling plant
Ip, Ir: subscript for 0:1 variable for selection of recycling and redistribution plant
Sss, Sps, Srs, Sws: subscript for the capacity of each center
Ds, Dr, Dw: subscript for unit reclaiming cost, unit resale price and unit treatment cost
Parameter estimates:
：
Table 1 the collecting amount(ton)
Total population
Collecting amount
Region
No
Guangzhou
Conversion weight
577.76(104pieces)
529(104pieces)
529(104ton)
1
LYHT Four districts
319
292.08
292.08
2
BH Two districts
131
119.94
119.94
3
HL Two districts
33.64
4
PN Two districts
94.12
30.80
86.18
30.80
86.18
：
Table 2 the related datasheet of collecting plants, reproducing plants, resale plants and landfill plant
1
2
3
4
The capacity of reclaiming center
200(ton/year)
The operating cost
1(104yuan/y)
150
100
200
0.9
0.95
0.8
180
150
180
The capacity of reproducing factory
200(ton/year)
The fixed cost of reproducing factory
4
50(10 yuan)
47
40
38
The operating cost
1(104yuan/y)
0.9
0.95
0.8
The unit cost of reclaim
200(104yuan/ton)
Baiyun district
The capacity of resale center
180(ton/year)
Selling unit price
4
600(10 yuan/ton)
180
175
Panyu district
170
Tianhe district
250
180
500
450
：
Table 4 the transportation distance between plants(km)
1
2
3
4
1
—
2.67
2.1
2.94
2
2.67
—
3.29
3.57
3
2.1
3.57
—
3.73
4
2.94
3.29
3.73
—
Baiyun district
1.86
—
1.99
4.82
Panyu district
3.12
5.63
3.93
—
Tianhe district
—
2.12
1.34
3.38
204
Tianhe district
—
Baiyun district
Panyu district
4.84
：
Tianhe district
1.41
Table 5 the main variable table circulated by Lingo7.0
Max z=106845.9 104yuan/year
Ls(1)=292.08
Lp(1)=200
Ip(1)=0
Lr(1)=180
Ls(2)=119.94
Lp(2)=0
Ip(2)=1
Lr(2)=113.26
Ls(3)=30.80
Lp(3)=117.4
Ip(3)=0
Lr(3)=87.62
Ls(4)=86.18
Lp(4)=0
Ip(4)=1
Lw=148.12
X1(1,1)=200
X2(2,1)=47.15
X3(1,1,)=29.21
X4(1,1)=60
X1(3,3)=117.4
X2(4,2)=175.03
X3(2,1)=11.99
X4(3,1)=35.22
X3(3,1)=3.08
X3(4,1)=8.62
（
）
Ir(1)=1
Ir(2)=1
Ir(3)=1
X5(1,3)=87.62
X5(2,1)=35.98
X5(3,1)=9.24
X5(4,2)=25.85
4. The economic profits of CPGL in Guangzhou
From the optimization result, two reproducing factories are set up in Baihua Two discrict and Pannan Two district, and three redistribution plants in Baiyun district, Panyu district and Tianhe district.
This operational method will bring 106, 845,9 thousand Yuan. Carry on economic sensitivity analysis
for this model: reproducing and resale amount bring to higher profits through fig. 1 and fig. 2. From fig.
3 and fig. 4, the key factors caused profit sharply reduction are the unbalanced transportation and scrap
rate of the waste. The capacity of reproducing factory(3), resale center(2) and treatment plant is superfluous from other dual price analysis, thus if EL system is set up based on present collecting amount, it
is wise to shrink the size of corresponding plants so as to reduce the cost.
5 The social performance analysis of GL
CPGL brings great benefits for Guangzhou from the economic analysis of this model. The GL, as a
brand-new conception, not only creates the value of economic entity, but also brings invisible concept
value to enterprise and society. They are: (1) GL promotes the manufacturers to go to the foreland of
sustainable development, helping them build good image. (2) GL impels enterprises to improve custommer satisfaction from the angle of serving so as to gain public trust. (3) CPGL safeguards the ecological balance, and curries out green marketing for the rare resource. (4) As the important link between
enterprises and consumers, GL helps consumers strengthen environmental consciousness. (5) As the
important component of GDP, GL improves competitive ability of a city and even a country[2].
349
0
0
0
0
1
:
t
i
n
u
348.5
p(1),
348.85
700
p(3),
348.1
n 348
a
u347.5
y
347
346.5
p(2),
347.69
p(4),
347.02
0
0
0
0
1
:
t
i
n
u
500
n
a 400
u
y
300
r(1), 600
r(2), 500
200
100
346
Fig. 1 Impact of
600
0
reproducing unit increment
on gross profit
Fig. 2 Impact of resale unit increment
on gross profit
205
r(3), 450
100
0
0
0
0
1
:
t
i
n
u
w , -0.5
0
-100
n
a-200
u
y
-300
s,
-348.096
r, 0
-400
-500
0
0
0
0
1
:
t
i
n
u
p, -500
-600
Fig. 3 Impact of unbalance transportation
on gross profit
n
a
u
y
-145
-146
-147
-148
-149
-150
-151
-152
-153
s(1)+p(1)
-148.184
s(2)+p(2)
-151.904
s(3)+p(3)
-147.924
s(4)+p(4)
-151.904
Fig. 4 Impact of utilization ratio
on gross profit
6. Conclusion
This study gives a CPGL model of Guangzhou, which can expand to other electronic fields or
even other industries from the economic and social aspects. But how to choose developing strategy
models and specify it from the network flows? The newly arisen GL, which is based on the RL in essence, has higher strategic position and emphasizes the cooperative ability. So 4PL model, composed of
3PL, the technological enterprise of the logistics and logistics consulting enterprises, will be put into
practice in order to program the whole society. The network of GL is the process of creating profits,
which will reflect the advanced effect of dynamic alliance through the economic link between inner
plants. So developing strategy models and network flow will bring GL a future research framework[3].
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