Investigations into the essence and systems modeling of return and recycling material flows
Journal: Journal of Lviv Polytechnic National University. Series of Economics and Management Issues (Vol.3, No. 84)Publication Date: 2016-10-20
Authors : K. Dzyubina; A. Dzyubina;
Page : 202-212
Keywords : direct material flow; reverse logistic; reverse material flow; return material flow; recycling material flow; models of reverse material flows functioning; “B2B”; “B2C”; “service recovery paradox”; ecological management.;
Abstract
The article is dedicated to the features of return and recycling material flows functioning. The expediency of reverse logistics tools introduction into an enterprise logistics activity in order to improve management of industrial and economic activity of an enterprise is grounded. The main results of the reverse material flows management concept implementation are considered to be rising costs of intangible assets (brand image), customer's loyalty increase and ecological management implementing. The innovative typology of reverse material flows is developed on the basis of their appearance nature. The new types of reverse material flows are revealed, namely return material flow and recycling material flow. The models of the reverse material flows in the current economic conditions are designed. The peculiarities of such types of reverse material flows as “return” and “recycling” are reviled. The model of return material flows is designed. The main element of this model is a special enterprise - service center (or a special structural department of the producer / dealer, trader, agent). The model of recycling material flows is given additionally. The main elements of this model are as follows: an enterprise, that collects waste (returnable containers etc.) point and an enterprise, that recycles waste (returnable containers etc.). Special attention is paid to the return and recycling material flows functioning in the “B2B” and “B2C” markets. An enterprise's capabilities to minimize financial costs through the usage of “advertising effect” and “recovery service paradox” are selected and reviewed.
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