Designing Reverse Production Systems for Used Electronics and Carpet: A Research Study, Exams of Systems Engineering

Download Designing Reverse Production Systems for Used Electronics and Carpet: A Research Study and more Exams Systems Engineering in PDF only on Docsity! 1 DESIGNING REVERSE PRODUCTION SYSTEMS FOR USED ELECTRONICS RPS Research Team Industrial & Systems Engineering Georgia Tech Atlanta, Georgia USA April 2004 Research Team Faculty: • Jane Ammons ISyE/Ga Tech Atlanta, GA 30332-0205 jane.ammons@isye.gatech.edu 404-894-2364 • Matthew Realff ChE/Ga Tech Atlanta, GA 30332-0100 matthew.realff@che.gatech.edu 404-894-1834 Graduate Students: • Tiravat “To” Assavapokee, Josh Pas, I-Hsuan “Ethan” Hong, Jing Wei, Wuthichai Wongthatsanekorn • Juan Martín Vannícola (ITBS Argentina) • Devon Oudit (Fulbright program) • Ken Gilliam (Army) Industrial Collaborators • CARE (Carpet Recovery America Effort) • Reboot, Zentech State& Federal Government • CCACTI • Georgia DNR, P2AD • NSF under grant Grant # DMI-0200162 , EPA 2 Research team in action Reverse Production Systems Raw Material Refining Material Manufacturing Component Manufacturing Final Assembly Point of Sale Increase in Manufactured Value Collection & Sorting Demanufacturing Decrease in Manufactured Value Chemical Recycling Material Compounding The system for taking back and using products at their end of life. New Forward Logistics Arcs Economically Optimal Closed Cycle 5 Increasing Collection Volume 0% 200% 400% 600% 800% 1000% 1200% 100% 89% 78% 67% 56% 44% 33% 25% Percentage of current price charged C or es po nd in g in cr ea se in c ol le ct io n vo lu m e Elastic Collection Volume Inelastic Collection Volume Profit as a Function of Volume -2 0 2 4 6 8 10 10 0% 89 % 78 % 67 % 56 % 44 % 33 % 25 % Percent of current collection fee N or m al iz ed p ro fit . Elas t ic Co llect ion Volume Inelas t ic Co llect ion Volume 6 Dalton Landfill Carpet Manufacturing Waste Monofill Area Profitability of Remanufacturing Infrastructure Alternatives -5 0 5 10 15 20 25 30 N or m al iz ed p ro fit . 200% 250% 300% 350% 400% 450% 500% 1000% Percentage of 1996 used carpet collection volume California only Chattanooga only both open 7 Used Electronics • 150 million personal computers and workstations will have been sent to landfills worldwide by 2005 • U.S. corporations have wasted $3 billion in one year retiring outdated personal computersOpportunity !!!! Used Electronics • Environmental concerns – Lead, arsenic, cadmium, mercury, cobalt – Landfill space – Export to developing countries where processing may cause problems 10 Locations of Alternative Sites (Georgia Case Study) 6 Non-profit collection & processing sites (NP) 12 Municipal collection sites 15 Commercial processing sites (A) 1 Prison processing site (PR) 1 Processing site for products from large business (AA) Region Supply for TVs (lbs) Supply for Monitors (lbs) Supply for CPUs (lbs) 1 133,610 216,400 272,720 2 87,236 141,290 178,060 3 657,000 1,064,130 1,341,040 4 77,388 125,340 157,960 5 83,970 136,000 171,400 6 84,318 136,570 172,110 7 83,339 134,980 170,110 8 67,680 109,620 138,150 9 52,283 84,680 106,720 10 67,605 109,500 137,990 11 69,912 113,240 142,700 12 104,024 168,480 212,330 13* 0 90,000 90,000 14* 0 90,000 90,000 Total (lbs) 1,568,365 2,720,230 3,381,290 Georgia e-scrap Supply Estimates * Outside Georgia 11 Experimental Design • Four factors and two levels for each factor – Participation rate • Levels: 20% and 30% – CRT recycler option • Levels: with all CRT recyclers and with only OH CRT recycler – TV usability rate • Levels: 10% and 30% – CPU & monitor usability rate • Levels: (CPU 40%, monitor 40%) and (CPU 20%, monitor 20%) • Total scenarios conducted: 2 × 2 × 2 × 2 = 16 Model Scenarios Sc 1 Sc 3 Sc 2 Sc 4 With all CRT Recyclers With only CRT recycler in OH 30% 20% Pe rc en t Pa rti ci pa tio n CRT Recyclers Sc 5 Sc 7 Sc 6 Sc 8 With all CRT Recyclers With only CRT recycler in OH 30% 20% Pe rc en t Pa rti ci pa tio n CRT Recyclers Sc 9 Sc 11 Sc 10 Sc 12 With all CRT Recyclers With only CRT recycler in OH 30% 20% Pe rc en t Pa rti ci pa tio n CRT Recyclers Sc 13 Sc 15 Sc 14 Sc 16 With all CRT Recyclers With only CRT recycler in OH 30% 20% Pe rc en t Pa rti ci pa tio n CRT Recyclers Useable %: TV: 30% CPU: 40% Monitor: 40% Useable %: TV: 30% CPU: 20% Monitor: 20% Useable %: TV: 10% CPU: 20% Monitor: 20% Useable %: TV: 10% CPU: 40% Monitor: 40% 12 RPS Infrastructure Determination Model (RPS) Maximize: Net Profit (Revenues – Operating and Fixed Costs) Subject to: Supply and Demand based on supply and demand at each source and sink point. Flow balances between sites based on material consumed and produced by the tasks located at those sites. Upper and lower bounds on storage, transportation and processing of material at sites. Logical constraints on sites, such as the need to open a site before allowing tasks to be located there. Robust Decisions in the Case Study Scenario 1 Scenario 2 Scenario 16….. A robust solution under every scenario RPS Optimal Solution RPS Optimal Solution RPS Optimal Solution Discrete Robust RPS Optimal Solution 15 Optimal and Robust Solutions Net Profit of Scenario 1 ~ 16 16 Comparison between Robust and Optimal Solutions for 16 Scenarios Scenario Optimal profit R-Optimal profit Regret Percentage to the optimal value 1 2,922,602 2,825,162 97,440 96.67% 2 2,677,033 2,584,692 92,341 96.55% 3 4,371,895 4,200,988 170,907 96.09% 4 3,995,216 3,837,216 158,001 96.05% 5 2,585,981 2,473,352 112,629 95.64% 6 2,310,663 2,203,656 107,008 95.37% 7 3,882,715 3,652,868 229,847 94.08% 8 3,442,097 3,249,933 192,164 94.42% 9 1,375,246 1,149,325 225,921 83.57% 10 1,098,493 865,521 232,972 78.79% 11 1,956,051 1,822,830 133,221 93.19% 12 1,531,504 1,390,899 140,605 90.82% 13 1,035,005 797,515 237,490 77.05% 14 721,951 484,486 237,465 67.11% 15 1,442,492 1,274,710 167,782 88.37% 16 981,766 803,616 178,149 81.85% Cost Structure of Scenario 3 6% 38% 45% 8% 3% CollectionCost ProcessingCost Transportation SiteOpening LandfillDisposal Cost Structure of Scenario 14 7% 27% 55% 9% 2% CollectionCost ProcessingCost Transportation SiteOpening LandfillDisposal Cost Structure Comparisons of relative costs for highly favorable conditions (Scenario 3) and unfavorable ones (Scenario 14). 17 Revenue Structure Revenue Structure of Scenario 3 88% 12% TotalSales CollectionFee Revenue Structure of Scenario 14 82% 18% TotalSales CollectionFee Comparisons of revenue sources for highly favorable conditions (Scenario 3) and unfavorable ones (Scenario 14). Summary • Reuse and recycling of electronics – Benefits the environment – Provides economic development opportunity ($, jobs) • Effective infrastructure required – Collection, transportation, processing – Sufficient volumes are critical for economic viability • Mathematical models are cutting edge tool for infrastructure design – Must address uncertainty – Georgia case study demonstrates innovative capability