Conceptual modeling on economic sustainability of computer part recovery systems

In addition to the compliance on environmental protection and preservation regulations, the opportunity to obtain financial benefits from reclaimable remaining values in computer waste is another driver why computer manufacturers should manage their reverse logistics (RL) properly. However, a range of complexity in the computer RL system becomes barrier for the companies to maximize their long-term profits. This research paper presents a conceptual model to measure computer manufacturer's RL profitability affected by six influence factors, namely part type, return quality, market attractiveness, custom duty percentage, shipment cost, and recovery facility location attractiveness. The conceptual modeling is performed by using the qualitative phase of system dynamics (SD) methodology on the computer part recovery system networks covering collection, segregation, shipment, recovery operations, re-sales, and disposal activities. The corresponding results are presented in process flow, causal loop and stock and flow diagrams which lead to further development using the quantitative phase of SD approach.