OCTOBER 19-20, 2012 - YMCA University of Science & Technology

Proceedings of the National Conference on
Trends and Advances in Mechanical Engineering,
YMCA University of Science & Technology, Faridabad, Haryana, Oct 19-20, 2012
2. Need of economically and environmentaly viable rl frame work
Despite growing participation within industries, most value recovery processes still remain small, independent
and highly fragmented [34]. To strategize cost efficient product take-back plan, there has been growing interest
in the development of reverse logistics that drives reverse flow of returned products from the end customers back
to the original equipment manufacturers. Efficient planning and execution of reverse logistics would provide
firms a competitive edge in the development of sustainable, yet profit-generating, business strategies. Sound
strategy and execution of reverse logistics would promote not only economic, but also environmental benefits as
value of returned products should be counted towards savings of raw material and labor. While reverse logistics
do not promise guaranteed savings, many have reported noticeable benefits: 40% less overall cost, 33% less
inventory usage, and 44% higher customer satisfaction .From environmental viewpoint, reverse logistics make
significant contribution towards reduction of hazardous waste, alleviation of landfill saturation and preservation
of scarce raw materials [12]. Reverse logistics take fundamentally different approach from forward logistics
having characteristics of highly fragmented return quantities, multiple return channels, complex transportation
routing, higher level of expected serviceability for multiple Clients and variety of disposition options. Due to
such characteristics, realization or execution of reverse logistics often entail many new challenges. Two major
challenges of reverse logistics network design would include cost of value recovery process and low return rates
from customers. Recent research reported the cost of reverse logistics accounts for nearly 44% of entire product
take-back process [41]. Additionally, Green peace’s survey in 2007 revealed that many manufacturers struggle to
achieve beyond 20 percent of product return rate. Challenges in product take-back processes entail careful
evaluation of aforementioned two key issues of reverse logistics network design in order to minimize the total
operating cost, while promoting higher customer product return frequency.
However, the reverse flow of products from consumers to upstream business has not received much
interest [13]. Yet, reverse logistics is a big business opportunity. According to the survey in 1999 that reverse
logistics executive council the cost of handling, transporting and determining the disposition of returned products
was $35 billion annually for U.S firms [14]. In 2000 remanufacturing in the U.S. was a #35 billion per year
industry [15]. Up to now, rates are still increasing. In India e-waste generation from electronics and computers
industries is approximate 1050 tons and if we count imported used products from developed countries then this
figures goes up to three times. From abroad used computers and electronic goods send to India by illegal
practices and received by big scrap dealers. The scrap dealers take outs useful components from used products
like circuit boards, switches, condenser, capacitor, batteries, transformers, copper wires, aluminums wires and
other precious metals by unscientific techniques and unsafe methods. By this process various dangerous gases
and metal particle like cadmium, mercury, bromine flame, poly- chlorination, Bi-finials are mixed in the
environment and causes for cancer, respiratory and brain related diseases in the society.
3. SAFE HANDLING OF E-WASTE
Today world is facing problem of e-waste. The life of this e-waste is very long and it is not biodegradable and
remains in the environment for long period, Product life cycle has been very short and day to day companies are
launching new advance products due to developments of advance technologies in the world. That is main reason
for the creation of e-waste in the society. In India more than 10 million computers are under use and more than 2
million computers are outdated. At present in our country here is no rule or directives from government
regarding retreatment and recycling of e-waste. To save the environment and society there is need to develop an
economically viable and safe practice of reverse logistics/recycling model. This model may be helpful to rescue
of products/components in environment friendly manner. We hereby developed a conceptual holistic generic
frame work of forward and reverse supply chain networks as shown in figure 1.
3.1 Secondary Markets
To generally conceptualize, reverse logistics is the process of retrieving the product from the end consumer for
the purposes of capturing value or paper disposal. Activities include transportation, warehousing, distribution
and inventory management. Transportation is usually the largest component of reverse logistics costs. Reverse
logistics services include product returns, source reduction , recycling, materials substitution, reuse of materials,
waste disposal, refurbishing, repair and remanufacturing [18] Reverse logistics -and reverse logistics researchhas
traditionally emphasized green logistics i.e. the use of environmentally conscious logistics strategies [18,19].
While environment aspects of reverse logistics are critically important, many firms are also recognizing the
economic impact of reverse logistics [20] Practically all business must deal with returns of some natures because
of issues such as marketing returns (i.e. customers change their minds or find the product unacceptable), damage
or quality problems, overstocks, or, merchandise that is brought back for repairs, refurbishing, or
remanufacturing. NOREK (2002) provides an indication of the sheer volume of returns generated in many
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