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1
Ashby, Alison. "Developing closed loop supply chains for environmental sustainability." Journal of Manufacturing Technology Management 29, no. 4 (June 4, 2018): 699–722. http://dx.doi.org/10.1108/jmtm-12-2016-0175.
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PurposeForward and reverse supply chains form a “closed loop” when managed in a coordinated way and this “cradle to cradle” responsibility has strong relevance to addressing environmental sustainability in global supply chains. The extensive outsourcing of manufacturing has created highly fragmented supply chains, which is strongly evidenced within the UK clothing industry, and it presents major environmental challenges, particularly around waste and resource use. The purpose of this paper is to investigate how a closed loop supply chain (CLSC) can be successfully developed to address environmental sustainability.Design/methodology/approachThe natural resource-based view (NRBV) acknowledges the importance of a firm’s tangible and intangible resources, as well as socially complex relationships, and provides three path-dependent strategies for achieving environmentally based competitive advantage. Via an in-depth case study of the UK-based clothing firm, the NRBV is employed as a framework for understanding the processes that a focal firm needs to engage in to develop a CLSC, and the contribution that is made by its resources and supplier relationships.FindingsThe findings illustrate the key importance of strategic resources and shared vision and principles between the focal firm and its suppliers, in order to progress from a more reactive pollution prevention strategy to a fully embedded CLSC response to environmental sustainability. The case study highlights the need to extend the current CLSC model to integrate the design function and end customer; the design function ensures that appropriate environmental practices can be implemented, and customers represent a key stakeholder as they enable the reverse flows required to maximise value and minimise waste.Originality/valueThe NRBV and its three path-dependent strategies are an established framework for understanding environmentally based competitive advantage, but has not previously been explicitly employed to investigate CLSCs. This research, therefore, provides valuable insight into the applicability of this model in the supply chain field, and the key role of tangible and intangible resources and socially complex supplier relationships in developing and achieving a CLSC.
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Dai, Zhuo. "The Design of Closed-Loop Supply Chain Network." Applied Mechanics and Materials 744-746 (March 2015): 1910–14. http://dx.doi.org/10.4028/www.scientific.net/amm.744-746.1910.
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This paper designs a model of muti-echelon closed-loop supply chain network (CLSC network). CLSC network includes raw material suppliers, manufacturers, distribution centers, collection centers and customer zones. The purpose of this paper is to minimize the overall costs of CLSC network. The overall costs include transportation cost, fixed cost, variable cost, penalty cost. This model is a mixed integer linear programming model. In general, it is very difficult to solve the model. Cplex12.6 is used in order to deal with this model. The results show that this model can be solved by Cplex12.6 well.
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Pazhani, Subramanian, and A. Ravi Ravindran. "Design of Closed Loop Supply Chain Networks." International Journal of Business Analytics 1, no. 1 (January 2014): 43–66. http://dx.doi.org/10.4018/ijban.2014010104.
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Given the importance of operating and managing forward and reverse supply chains in an integrated manner, this article considers an integrated four-stage supply chain network with forward and reverse product flows. We consider a closed loop supply chain (CLSC) network with primarily commercial returns, which could be potentially recovered by light repair operations or by refurbishing. The annual estimate of commercial returns in the United States is in excess of $100 billion. This paper discusses the optimal design of a CLSC network.A mixed integer linear programming (MILP) model is developed to determine the optimal locations of the facilities and the distribution of flows between facilities in the CLSC to maximize the total profit. The model is illustrated using a realistic example applicable to the electronics industries. Even though recycling and refurbishing add cost, the overall supply chain profit increases due to a reduction in the raw material cost. Sensitivity analysis is carried out to determine the effect of return percentage and varying demands of customers who are willing to buy refurbished products. The analysis show that the total supply chain profit increases with the increase in refurbishing activity. Finally, changes in the network design with respect to the uncertainty in these return parameters are also studied. The results show that the changes in return parameters lead to changes in optimal network design implying the need to explicitly consider the uncertainty in these return parameters.
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Miemczyk, Joe, Mickey Howard, and Thomas E. Johnsen. "Dynamic development and execution of closed-loop supply chains: a natural resource-based view." Supply Chain Management: An International Journal 21, no. 4 (June 13, 2016): 453–69. http://dx.doi.org/10.1108/scm-12-2014-0405.
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Purpose This paper aims to reflect on recent closed-loop supply chain (CLSC) practices using a natural resource-based view (NRBV) and dynamic capabilities (DC) perspective. Design/methodology/approach Two empirical case studies of CLSC exemplars are used to discuss the theoretical relevance of these views. Findings The paper shows how strategic resources help companies in two sectors achieve successful CLSC designs. Strategic supply chain collaboration is an important success factor but also presents a number of challenges. The NRBV is used to explain the importance of new resources in technology, knowledge and relationships and stresses the role of DCs to constantly address changes in the business environment to renew these strategic resources. Research limitations/implications This research elaborates on NRBV theory related to CLSCs and reinforces the inclusion of DCs. It specifies the application of NRBV in the context of textiles and carpet manufacture and highlights the inherent conflicts in seeking value while moving towards sustainable development. Practical implications Investments in technical and operational resources are required to create CLSCs. Pure closed-loop applications are impractical, requiring relationships with multiple external partners to obtain supply and demand for recycled products. Social implications CLSCs may provide opportunities for social enterprises or third sector organizations collaborating with manufacturers. Originality/value This paper provides insights into the constituent resources needed for successful CLSCs. It also helps move CLSC research from a tactical logistics problem to a problem of strategic resources and relational capabilities: what we term “dynamic supply chain execution”. This paper develops a framework for transitioning towards CLSCs, underlining the importance of co-development and forging new relationships through commitment to supply chain redesign, co-evolution with customers and suppliers and control of supply chain activities.
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Liu, Shan, Yan Xing, Fengmin Yao, and Dongyan Chen. "Modelling dual-channel closed-loop supply chain considering production diseconomies." MATEC Web of Conferences 336 (2021): 09002. http://dx.doi.org/10.1051/matecconf/202133609002.
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This paper studies the pricing selection and coordination strategies for dual-channel closed-loop supply chain (CLSC) considering production diseconomies. Under the centralized and decentralized decision-making, the decision models of CLSC of retailer recycling was constructed, the effects of the manufacturer’s production diseconomy and the sales competition between manufacturer and retailer on new product pricing and waste product recycling were analysed, the optimal pricing strategy of dual-channel CLSC was given, and a “two-part tariff” coordination contract was established based on centralized decision-making. The results indicate that the profits of each member are negatively correlated with the production diseconomy and positively correlated with the degree of sales competition, the direct sales volume of manufacturer is always more than twice that of retailer, and the stronger the competition degree is, the more obvious the advantage is. Further, within the range of contract parameters that the dominant manufacturer and retailer are willing to accept, the “two-part tariff” contract can effectively realize the coordination of dual-channel CLSC.
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Li, Jing, and Shuying Gong. "Coordination of Closed-Loop Supply Chain with Dual-Source Supply and Low-Carbon Concern." Complexity 2020 (March 9, 2020): 1–14. http://dx.doi.org/10.1155/2020/7506791.
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Considering the impact of dual-source supply and low-carbon manufacturing on a closed-loop supply chain (CLSC) system, this article constructs a CLSC model with two competitive dominant upstream suppliers and one following a downstream (re-)manufacturer, then coordinates supply chain through cost-sharing contract. Based on the industrial case in the area of power battery, we analyze the optimal strategies under competition, cooperation, and coordination structures separately and then investigate the influences of emission reduction effort and collection efficiency on supply chain performance. The results reveal that collection of used products can positively affect the (re-)manufacturer’s profit but has opposite impact on the new component supplier. Besides, recycling is beneficial to both low-carbon consumers’ utility and social welfare, but hurts the total profit of CLSC because of the high investment cost of collection. Therefore, the paper designs a cost-sharing contract, which is of applicability and efficiency for both economic and environmental development. Furthermore, it can also increase the profit of CLSC up to cooperation case and improve each member’s profit, eliminating double marginal effect and achieving supply chain coordination.
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Tahoori, G., Mohd Yusuff Rosnah, and Zulkifli Norzima. "Key Issues and Challenges of a Sustainable Closed Loop Supply Chain." Applied Mechanics and Materials 564 (June 2014): 684–88. http://dx.doi.org/10.4028/www.scientific.net/amm.564.684.
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Being tied with sustainability and due to the emergence of various environmental threats, closed loop supply chain (CLSC) has received huge attention recently. Dealing with both forward and reverse chain simultaneously, closed loop supply chain plays the key role as an enabler for sustainability. In this paper the gradual evolution of supply chain, the concept of sustainability, sustainable supply chain, incentives and different dimensions of sustainability and closed loop supply chain, issue and challenges such as recovery options, product acquisition, uncertainty, supplier selection, etchave been discussed.
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Prakash, Surya, Gunjan Soni, and Ajay Pal Singh Rathore. "Embedding risk in closed-loop supply chain network design." Journal of Modelling in Management 12, no. 3 (August 14, 2017): 551–74. http://dx.doi.org/10.1108/jm2-02-2016-0017.
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Purpose The purpose of this paper is to assist a manufacturing firm in designing the closed-loop supply chain network under risks that are affecting its supply quality and logistics operations. The modeling approach adopted aims at the embedding supply chain risks in a closed-loop supply chain (CLSC) network design process and suggests optimal supply chain configuration and risk mitigation strategies. Design/methodology/approach The method proposes a closed-loop supply chain network and identifies the network parameter and variables required for closing the loop. Mixed-integer-linear-programming-based mathematical modeling approach is used to formulate the research problem. The solutions and test results are obtained from CPLEX solver. Findings The outcomes of the proposed model were demonstrated through a case study conducted in an Indian hospital furniture manufacturing firm. The modern supply chain is mapped to make it closed loop, and potential risks in its supply chain are identified. The supply chain network of the firm is redesigned through embedding risk in the modeling process. It was found that companies can be in great profit if they follow closed-loop practices and simultaneously keep a check on risks as well. The cost of making the supply chain risk averse was found to be insignificant. Practical implications Although the study was conducted in a practical case situation, the obtained results are not indiscriminate to the other circumstances. However, the approach followed and proposed methodology can be applied to many industries once a firm decides to redesign its supply chain for closing its loop or model under risks. Originality/value By using the identified CLSC parameters and applying the proposed network design methodology, a firm can design/redesign their supply chain network to counter the risk and accordingly come up with planned mitigation strategies to achieve a certain degree of robustness.
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Li, Quanxi, Haowei Zhang, and Kailing Liu. "Research on Closed-Loop Supply Chain Decision-Making in Different Cooperation Modes with Government’s Reward-Penalty Mechanism." Sustainability 13, no. 11 (June 4, 2021): 6425. http://dx.doi.org/10.3390/su13116425.
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In closed-loop supply chains (CLSC), manufacturers, retailers, and recyclers perform their duties. Due to the asymmetry of information among enterprises, it is difficult for them to maximize efficiency and profits. To maximize the efficiency and profit of the CLSC, this study establishes five cooperation models of CLSC under the government‘s reward–penalty mechanism. We make decisions on wholesale prices, retail prices, transfer payment prices, and recovery rates relying on the Stackelberg game method and compare the optimal decisions. This paper analyzes the impact of the government reward-penalty mechanism on optimal decisions and how members in CLSC choose partners. We find that the government’s reward-penalty mechanism can effectively increase the recycling rate of used products and the total profit of the closed-loop supply chain. According to the calculation results of the models, under the government’s reward-penalty mechanism, the cooperation can improve the CLSC’s used products recycling capacity and profitability. In a supply chain, the more members participate in the cooperation, the higher profit the CLSC obtain. However, the cooperation mode of all members may lead to monopoly, which is not approved by government and customers.
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Battini, Daria, Marija Bogataj, and Alok Choudhary. "Closed Loop Supply Chain (CLSC): Economics, Modelling, Management and Control." International Journal of Production Economics 183 (January 2017): 319–21. http://dx.doi.org/10.1016/j.ijpe.2016.11.020.
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Lee, Dooho. "Who Drives Green Innovation? A Game Theoretical Analysis of a Closed-Loop Supply Chain under Different Power Structures." International Journal of Environmental Research and Public Health 17, no. 7 (March 27, 2020): 2274. http://dx.doi.org/10.3390/ijerph17072274.
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As awareness of environmental protection increases worldwide, enterprises have been building their supply chains in ways that conserve natural resources and minimize the creation of pollutants. One of the practical ways to make supply chains more sustainable is for enterprises to utilize green innovation strategies and to increase resource reuse. In this work, we focus on a closed-loop supply chain (CLSC) consisting of a manufacturer, a retailer, and a collector. In the investigated CLSC, the manufacturer and the retailer drive the green innovation strategy either individually or simultaneously to boost market demand. In the reverse flow of the CLSC, the collector is responsible for collecting consumers’ used products and transferring them to the manufacturer for remanufacturing. By combining two types of the market leadership and three types of green innovation strategies, we establish six different Stackelberg game models and solve them analytically. Through an extensive comparative analysis, we show who should have market leadership and who should drive the green innovation strategy in the CLSC. Various numerical examples are also given to support our major findings. One of our key findings suggests that the supply chain members must participate in green innovation activities at the same time to achieve a win-win scenario in the CLSC.
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Khan, Abdul, Qazi Khalid, Khawar Naeem, Rafiq Ahmad, Razaullah Khan, Waqas Saleem, and Catalin Pruncu. "Application of Exact and Multi-Heuristic Approaches to a Sustainable Closed Loop Supply Chain Network Design." Sustainability 13, no. 5 (February 24, 2021): 2433. http://dx.doi.org/10.3390/su13052433.
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Closed-loop supply chains (CLSC) are gaining popularity due to their efficiency in addressing economic, environmental, and social concerns. An important point to ponder in the distribution of CLSC is that imperfect refrigeration and bad road conditions may result in product non-conformance during the transit and thus such products are to be returned to the supply node. This may hinder the level of customer satisfaction. This paper presents a sustainable closed-loop supply chain framework coupled with cross-docking subject to product non-conformance. A cost model is proposed to investigate the economic and environmental aspects of such systems. The transportation cost is analyzed in terms of total carbon emissions. A set of metaheuristics are administered to solve the model and a novel lower bound is proposed to relax the complexity of the proposed model. The results of different size problems are compared with the branch and bound approach and the proposed lower bound. The results indicate that the proposed research framework, mathematical model, and heuristic schemes can aid the decision-makers in a closed-loop supply chain context.
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Raza, Syed Asif. "A systematic literature review of closed-loop supply chains." Benchmarking: An International Journal 27, no. 6 (June 5, 2020): 1765–98. http://dx.doi.org/10.1108/bij-10-2019-0464.
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PurposeThis study research contributes in fulfilling the gap by carrying out a systematic literature review (SLR) of contemporary research studies in closed-loop supply chain (CLSC). To the best of the author’s knowledge, an SLR rooted in bibliometric analysis has not been carried focusing on advent developments in CLSC. SLR employs scientific methodologies to select papers from standard databases. The SLR using advanced bibliometric and network analysis enables unveiling the key features of the contemporary literature.Design/methodology/approachThe author has analyzed over 333 documents published from 2008 and onward. Using the contemporary tools from bibliometric analysis tools, the author presented an exploratory analysis. A network analysis is utilized to visualize literature and create clusters for the cocited research studies, keywords and publication sources. A detailed multivariate analysis of most influential works published based top 100 articles via a cocitation matrix is done. The multivariate analysis used k-means clustering in which optimal number of clusters are estimated. The analysis is further extended by using a factor analysis, which enables determining the most influential clusters in the k-means clustering analysis.FindingsThe SLR using a bibliometric and network analysis enables unveiling the key features of the contemporary literature in CLSC. The author examined published research for influential authors, sources, region, among other key aspects. Network analysis enabled visualizing the clusters of cocited research studies, cowords and publication sources. Cluster analysis of cocited research studies is further explored using k-means clustering. Factor analysis extends findings by identifying most contributing grouping of research areas within CLSC research. Each clustering technique disclosed a unique grouping structure.Originality/valueCLSC has received considerable attention, and its core areas start with focusing on reverse logistics concepts relating reuse, recycling, remanufacturing, among others. Contemporarily, the studies have enhanced reverse logistics core functionalities interfaced with the other interesting avenues related to CO2 emission reduction, greening and environmental protection, sustainability, product design and governmental policies. Earlier studies have presented a literature review of CLSC; however, these reviews are commonly conducted in the traditional manner where the authors select papers based on their area of expertise, interest and experience. As such these reviews fall short in utilizing the advanced tools from bibliometric analysis.
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He, Suchao, Xigang Yuan, and Xiaoqing Zhang. "The Government’s Environment Policy Index Impact on Recycler Behavior in Electronic Products Closed-Loop Supply Chain." Discrete Dynamics in Nature and Society 2016 (2016): 1–8. http://dx.doi.org/10.1155/2016/7646248.
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We establish the model of multilevel closed-loop supply chain (CLSC) which included raw material supplier, manufacturer, distributor, retailer, and third-party recycler based on system dynamics (SD). Considering factors which influence recycler behavior-environmental policy index and recovery delay, we apply SD software—Vensim—to simulate CLSC model and study recycler behavior’s influence on the entire CLSC through calculating the bullwhip effect of all levels members order rate. Research shows that (1) the larger the environmental policy index, the greater the recycle proportion and the better the effect of weakening retailer’s order rate in forward supply chain, which however, increasingly, strengthen the reverse supply chain bullwhip effect, (2) the shorter the recovery delay, the better the effect of weakening the forward supply chain bullwhip effect and the longer the recovery delay, which increasingly weakens the reverse supply chain bullwhip effect, and (3) the effect of environmental policy index on the bullwhip effect of all levels members order rate is more significant than recovery delay.
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Yan, Yingluo, and Fengmin Yao. "Pricing strategy of closed loop supply chain considering different CSR investment modes." MATEC Web of Conferences 336 (2021): 09005. http://dx.doi.org/10.1051/matecconf/202133609005.
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More and more companies are beginning to realize that incorporating corporate social responsibility (CSR) and sustainable development into supply chain strategies and operations can bring them more competitive advantages. In the case that the manufacturer or retailer performs CSR through profit donation, the pricing decision-making problem of closed-loop supply chain (CLSC) with dominant retailer under different CSR investment modes is studied. The decision-making models of CLSC under the manufacturer’s and retailer’s CSR investment mode are constructed respectively. The conditions for enterprises to fulfil CSR through profit donation and the influence of different CSR investment modes on the pricing of new products and recycling of waste products are discussed. The research shows that no matter what kind of CSR investment mode, only when the consumers are more sensitive to the CSR investment of enterprises, the manufacturer and retailer will fulfil the CSR through profit donation. The CSR investment mode of the manufacturer is more beneficial to consumers, environment, CLSC members and whole system. No matter whether the dominant retailer carries out CSR investment or not, she always obtains more channel profits than the manufacturer.
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Zhang, Songtao, and Min Zhang. "Mitigation of Bullwhip Effect in Closed-Loop Supply Chain Based on Fuzzy Robust Control Approach." Complexity 2020 (January 21, 2020): 1–17. http://dx.doi.org/10.1155/2020/1085870.
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Uncertainties and lead times make the closed-loop supply chain (CLSC) more complex, less stable, and then the bullwhip effect (BE) will become more intense. This paper will address a fuzzy robust control (FRC) approach to mitigate the BE in the uncertain CLSC with lead times. For the reverse channels for products in the CLSC, the customers’ used products are recycled by both the manufacturer and the third party recovery provider, and new products bought by customers within a certain period of time can be returned to the retailer. In the CLSC system, the state transformation equations of the inventories and the total operation cost are set up. A new FRC approach is proposed to mitigate the BE and realize the robust stability of the uncertain CLSC with lead times. A simulation example verifies the mitigation effect of the BE under the proposed FRC approach.
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Kim, Sungki, Nina Shin, and Sangwook Park. "Closed-Loop Supply Chain Coordination under a Reward–Penalty and a Manufacturer’s Subsidy Policy." Sustainability 12, no. 22 (November 10, 2020): 9329. http://dx.doi.org/10.3390/su12229329.
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Government legislation significantly impacts closed-loop supply chain (CLSC) operations. This study examines the collection rate of and decisions on the product greening improvement level in a three-level CLSC with the government’s reward–penalty and a manufacturer’s subsidy policy. Four game-theoretic models are analyzed in order to evaluate the ways in which the policy and revenue-sharing contracts (RSCs) between the manufacturer and retailer affect the CLSC members’ optimal decisions and profits. We found that a reward–penalty and subsidy policy raise the collection rate, as well as the product greening improvement level. A manufacturer’s financial conflict of interest can be mitigated using RSCs. The RSCs between the manufacturer and the retailer also increase the profit of a recycling company that successfully coordinates the CLSC. An interesting result is that, when the RSCs are used under the subsidy policy, the collection rate is higher than it is in a centralized model. We also found that the subsidy level needs to be adjusted according to the price of the recycling resources, and that increasing the value of the recyclable resources and lowering the recycling costs in the early stages of the supply chain collaboration could lead to higher environmental sustainability. These results illustrate that using an RSC can effectively coordinate the CLSC, and can thus help policy implementation by governments.
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Gong, Chen, and Zhuang. "Decision-Making and Performance Analysis of Closed-Loop Supply Chain under Different Recycling Modes and Channel Power Structures." Sustainability 11, no. 22 (November 14, 2019): 6413. http://dx.doi.org/10.3390/su11226413.
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The recycling and remanufacturing of e-waste is linked to a worldwide emphasis on the establishment and implementation of Extended Producer Responsibility system (ERP), which has become an important problem in the process of cycling economy. Meanwhile, with the development and expansion of large-scale retail enterprises, the power structure of supply chain channels is showing a tendency towards diversity as well. However, few studies on closed-loop supply chains (CLSC) have considered both recycling modes and channel power structures. We aim to explore the influence of different recycling modes and channel power structures on the optimal decisions and performance of a closed-loop supply chain (CLSC), considering three recycling channels including manufacturer recycling, retailer recycling and hybrid recycling of retailer and manufacturer and two dominant modes including manufacturer-led and retailer-led. We construct six closed-loop supply chain models under different combinations of three recycling channels and two dominant modes. We analyze the effect of different recycling channels on company decision-making under the same dominant mode, whether participating in recycling has an impact on company decision-making under different dominant modes, and the effect on supply chain members and supply chain system under different dominant modes and recycling channels. The results show that the hybrid recycling strategy is always optimal for both supply chain members; the sub-optimal recycling strategies are both recycled by the subordinate enterprise, and the worst recycling strategies are both recycled by the leading enterprise. Moreover, it is always the worst strategy for manufacturer to participate in a closed-loop supply chain dominated by retailer and recycled by retailer; participating in a closed-loop supply chain dominated by manufacturer and recycled by manufacturer is always the worst strategy for retailer. From a system point of view, system efficiency is the highest under hybrid recycling, and system efficiency is the lowest if leading company recycles separately.
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Sulastri, Endang, Ririn Setiyowati, and Siswanto Siswanto. "CLOSED-LOOP SUPPLY CHAIN WITH DELIVERY LEAD TIME ON DIRECT AND INDIRECT CHANNEL." BAREKENG: Jurnal Ilmu Matematika dan Terapan 14, no. 2 (September 7, 2020): 201–10. http://dx.doi.org/10.30598/barekengvol14iss2pp201-210.
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The responsbility of protecting the environment rest with all parties, including manufacturers. Therefore, manufacturers reprocess their used products. Mathematically, it can be explained by closed-loop supply chain (CLSC) model. CLSC is a system that is carried out recycling or remanufacturing. In this study, closed-loop supply chain involves manufacturer and two retailers. Manufacturers sell their product directly to consumers and indirectly through retailers. The purpose of this study is to construct an optimal profit function of each actor. With centralized system , the model is a function of price without constraints by notice delivery lead time. The result shows that delivery lead have an impact to profit each actor. The longer delivery lead time decreases the profit.
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Shekarian, Ehsan, and Simme Douwe Flapper. "Analyzing the Structure of Closed-Loop Supply Chains: A Game Theory Perspective." Sustainability 13, no. 3 (January 29, 2021): 1397. http://dx.doi.org/10.3390/su13031397.
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Closed-loop supply chains (CLSCs) are seen as one of the circular economy’s leading approaches for reducing our natural environment load. Many CLSC models require collaboration among different parties. Game theory (GT) offers a way to consider the profits of all parties in a CLSC, providing insight into the costs and benefits to the involved parties in an objective and quantitative way. Presently, available reviews on the use of GT, in the context of CLSC, are quite limited and consider only a few relevant elements. Here, we present a new and more extensive framework, focusing on the collaboration structure of CLSCs. It contains a content-based analysis of 230 papers based on a four-step systematic literature review process. The characteristics studied are channels for collection, reprocessing and selling, the planning horizon, and the types of games. The structures found are graphically reviewed, leading to 196 different structures. The results show that, so far, most attention has been paid to the dual-channel collection, where collection by two retailers (dual-retailer) is the most studied case. With respect to selling, most attention has been paid to situations with two selling channels (dual-selling), i.e., one channel managed by a manufacturer and one channel managed by a remanufacturer. Studies have prioritized the role of manufacturers as that of the leader and collector. Finally, a number of directions for further research are pointed out.
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Zhou, Yan, Chi Kin Chan, Kar Hung Wong, and Y. C. E. Lee. "Closed-Loop Supply Chain Network under Oligopolistic Competition with Multiproducts, Uncertain Demands, and Returns." Mathematical Problems in Engineering 2014 (2014): 1–15. http://dx.doi.org/10.1155/2014/912914.
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We develop an equilibrium model of a closed-loop supply chain (CLSC) network with multiproducts, uncertain demands, and returns. This model belongs to the context of oligopolistic firms that compete noncooperatively in a Cournot-Nash framework under a stochastic environment. To satisfy the demands, we use two different channels: manufacturing new products and remanufacturing returned products through recycling used components. Since both the demands and product returns are uncertain, we consider two types of risks: overstocking and understocking of multiproducts in the forward supply chain. Then we set up the Cournot-Nash equilibrium conditions of the CLSC network whereby we maximize every oligopolistic firm's expected profit by deciding the production quantities of each new product as well as the path flows of each product on the forward supply chain. Furthermore, we formulate the Cournot-Nash equilibrium conditions of the CLSC network as a variational inequality and prove the existence and the monotonicity of the variational inequality. Finally, numerical examples are presented to illustrate the efficiency of our model.
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Xu, Hongru, and Erbao Cao. "Closed-loop supply chain network equilibrium model and its Newton method." Kybernetes 45, no. 3 (March 7, 2016): 393–410. http://dx.doi.org/10.1108/k-08-2013-0179.
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Purpose – The purpose of this paper is to develop a closed-loop supply chain (CLSC) network equilibrium model which consists of manufactures, retailers and consumer markets engaged in a Cournot pricing game with heterogeneous multi-product. Design/methodology/approach – The authors model the optimal behavior of the various decision makers and CLSC network equilibrium, and derive the equilibrium conditions based on variational inequality approach. The authors present a new Newton method to solve the proposed model. Findings – The authors find that the algorithm converges to the solution rapidly for most cases. Besides, the authors discuss the effect of some parameters on the equilibrium solution of the model, and give some insights for policy makers, such as improving the technology level of the manufacturer, reducing the cost of waste disposal and increase the minimum ration of used product to total quantity. Originality/value – The authors derive the network equilibrium conditions by the variational inequality formulation in order to obtain the computation of the equilibrium flows and prices. The authors present a new Newton method to solve the proposed model. The authors discuss the effect of some parameters on the equilibrium solution of the model, and give some managerial insights
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Shahul Hamid Khan, Vivek Kumar Chouhan, and Santhosh Srinivasan. "A multi-objective optimization of closed-loop supply chain problem with vehicle routing." Global Journal of Engineering and Technology Advances 6, no. 2 (February 28, 2021): 121–30. http://dx.doi.org/10.30574/gjeta.2021.6.2.0009.
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Product recovery has become significant business strategies to increase a competitive edge in business and also in the society. Parts from discarded products due to rapid advancement and post-consumer products before & after end-of-life (EOL) are recovered to reduce landfill waste and to have become a part of circular economy. Product recovery is made possible with the help of Closed-loop supply chain (CLSC). This paper concentrates on multi-period, multi-product, and multi-echelon Closed Loop Green Supply Chain (CLGSC) network. A bi-objective (cost and emission) Mixed Integer Linear Programming (MILP) model has been formulated for the network and has been optimized using Goal Programming approach and Genetic Algorithm. Results are discussed for providing some managerial insights of the model.
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Shi, Zunya, Nengmin Wang, Tao Jia, and Haoxun Chen. "Reverse Revenue Sharing Contract versus Two-Part Tariff Contract under a Closed-Loop Supply Chain System." Mathematical Problems in Engineering 2016 (2016): 1–15. http://dx.doi.org/10.1155/2016/5464570.
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The importance of remanufacturing has been recognized in research and practice. The integrated system, combining the forward and reverse activities of supply chains, is called closed-loop supply chain (CLSC) system. By coordination in the CLSC system, players will get economic improvement. This paper studies different coordination performances of two types of contracts, two-part tariff (TTC) and reverse revenue sharing contract (RRSC), in a closed-loop system. Through mathematical analysis based on Stackelberg Game Theory, we find that it is easy for manufacturer to improve more profits and retailer’s collection effects by adjusting the ratio of transfer collection price through RRSC, and we also give the function to calculate the best ratio of transfer collection price, which may be a valuable reference for the decision maker in practice. Besides, our results also suggest that although the profits of the coordinated CLSC system are always higher than the contradictory scenario, the RRSC is more favorable to the manufacturer than to the retailer, as results show that the manufacturer will share more profits from the system through RRSC. Therefore, RRSC has attracted the manufacturers more to closing the supply chain for economic consideration.
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Yang, Yuxiang, Zuqing Huang, Qiang Patrick Qiang, and Gengui Zhou. "A Mathematical Programming Model with Equilibrium Constraints for Competitive Closed-Loop Supply Chain Network Design." Asia-Pacific Journal of Operational Research 34, no. 05 (October 2017): 1750026. http://dx.doi.org/10.1142/s0217595917500269.
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A firm sets up his facilities including manufacturing/remanufacturing plants and distribution/collection centers, incorporating an existing closed-loop supply chain (CLSC) network. The entering firm has to compete with the existing firms in the existing network. The entering firm behaves as the leader of a Stackelberg game while the existing firms in the existing network are followers. We assume that the entering firm can anticipate the existing firms’ reaction to his potential location decision before choosing his optimal policy. We use a CLSC network equilibrium model in which the decision makers are faced with multiple objectives to capture the existing firms’ reaction. A mathematical programming model with equilibrium constraints is developed for this competitive CLSC network design problem by taking into account the market competition existing in the decentralized CLSC network. A solution method is developed by integrating Genetic algorithm with an inexact logarithmic-quadratic proximal augmented Lagrangian method. Finally, numerical examples and the related results are studied for illustration purpose.
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Huang, Lufei, Liwen Murong, and Wencheng Wang. "Green closed-loop supply chain network design considering cost control and CO2 emission." Modern Supply Chain Research and Applications 2, no. 1 (February 5, 2020): 42–59. http://dx.doi.org/10.1108/mscra-02-2019-0005.
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PurposeEnvironmental issues have become an important concern in modern supply chain management. The structure of closed-loop supply chain (CLSC) networks, which considers both forward and reverse logistics, can greatly improve the utilization of materials and enhance the performance of the supply chain in coping with environmental impacts and cost control.Design/methodology/approachA biobjective mixed-integer programming model is developed to achieve the balance between environmental impact control and operational cost reduction. Various factors regarding the capacity level and the environmental level of facilities are incorporated in this study. The scenario-based method and the Epsilon method are employed to solve the stochastic programming model under uncertain demand.FindingsThe proposed stochastic mixed-integer programming (MIP) model is an effective way of formulating and solving the CLSC network design problem. The reliability and precision of the Epsilon method are verified based on the numerical experiments. Conversion efficiency calculation can achieve the trade-off between cost control and CO2 emissions. Managers should pay more attention to activities about facility operation. These nodes might be the main factors of costs and environmental impacts in the CLSC network. Both costs and CO2 emissions are influenced by return rate especially costs. Managers should be discreet in coping with cost control for CO2 emissions barely affected by return rate. It is advisable to convert the double target into a single target by the idea of “Efficiency of CO2 Emissions Control Reduction.” It can provide managers with a way to double-target conversion.Originality/valueWe proposed a biobjective optimization problem in the CLSC network considering environmental impact control and operational cost reduction. The scenario-based method and the Epsilon method are employed to solve the mixed-integer programming model under uncertain demand.
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Wang, Yacan, Vincent Wiegerinck, Harold Krikke, and Hongdan Zhang. "Understanding the purchase intention towards remanufactured product in closed-loop supply chains." International Journal of Physical Distribution & Logistics Management 43, no. 10 (November 4, 2013): 866–88. http://dx.doi.org/10.1108/ijpdlm-01-2013-0011.
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Purpose – The paper aims to explore the reasons underlying the key assumption in the closed-loop supply chain (CLSC) literature that consumers' purchase intention is lower for remanufactured products than for new products. It aims to complement the predominantly operation-focused CLSC research by examining consumers' perception of and behavior relating to remanufactured products. Design/methodology/approach – A theoretical model is developed by integrating the concepts of perceived benefits and product knowledge with the theory of planned behavior and the theory of perceived risk. Then the model is examined through an empirical study in the Chinese automobile spare parts industry involving 288 respondents and using structural equation modeling. Findings – The results indicate that purchase intention is directly influenced by purchase attitude followed by perceived behavioral control and indirectly influenced by perceived risk, perceived benefit and product knowledge via attitude. Therefore, effective measures to promote consumers' purchase intention rely on coordinated policies built on multiple pillars instead of single factors. Originality/value – This is one of the first empirical studies to explore the factors that underpin consumers' purchase intention regarding remanufactured products. The results can be used to validate the key assumptions in operational models and foster new research in the context of CLSCs.
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Zhou, Jian, Wenying Xia, Ke Wang, Hui Li, and Qianyu Zhang. "Fuzzy Bi-Objective Closed-Loop Supply Chain Network Design Problem with Multiple Recovery Options." Sustainability 12, no. 17 (August 20, 2020): 6770. http://dx.doi.org/10.3390/su12176770.
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A network design of a closed-loop supply chain (CLSC) with multiple recovery modes under fuzzy environments is studied in this article, in which all the cost coefficients (e.g., for facility establishment, transportation, manufacturing and recovery), customer demands, delivery time, recovery rates and some other factors that cannot be precisely estimated while designing are modeled as triangular fuzzy numbers. To handle these uncertain factors and achieve a compromise between the two conflicting objectives of maximizing company profit and improving customer satisfaction, a fuzzy bi-objective programming model and a corresponding two-stage fuzzy interactive solution method are presented. Applying the fuzzy expected value operator and fuzzy ranking method, the fuzzy model is transformed into a deterministic counterpart. Subsequently, Pareto optimal solutions are determined by employing the fuzzy interactive solution method to deal with the conflicting objectives. Numerical experiments address the efficiency of the proposed model and its solution approach. Furthermore, by comparing these results with the CLSC network design in deterministic environments, the benefits of modeling the CLSC network design problem with fuzzy information are highlighted.
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Wang, Jian, and Wenxuan Shao. "Joint Capacity Investment, Collecting and Pricing Decisions in a Capacity Constraint Closed-Loop Supply Chain Considering Cooperation." Sustainability 13, no. 16 (August 4, 2021): 8725. http://dx.doi.org/10.3390/su13168725.
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In this paper, a closed-loop supply chain (CLSC) consisting of one manufacturer and one supplier is considered. The capacity of the manufacturer is limited, the manufacturer can increase capacity by investing in capacity, and there are different cooperation contracts among the supply chain members. This paper pushes collecting activities upstream, assumes that the collecting activity can be completed by the supplier, and accepts that there is cooperation between the members, which increases supplier involvement. Dynamic game models among CLSC members are formulated. The optimal decisions of pricing, capacity investment, and collecting channels of the CLSC members are obtained, and the impacts of some important factors, for example, the capacity investment cost coefficient and the cost-sharing factors, on optimal decisions are investigated. The results reveal that the supplier collecting mode performs better in some scenarios; therefore, the management enlightenment desired by the supplier can be obtained. Additionally, the coordination between the manufacturer and the supplier sometimes fails to increase the closed-loop supply chain’s sustainability, which is a finding quite different from some current research results.
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Long, Xiaofeng, Jiali Ge, Tong Shu, and Chunxia Liu. "Production Decision and Coordination Mechanism of Socially Responsible Closed-Loop Supply Chain." Complexity 2020 (May 23, 2020): 1–10. http://dx.doi.org/10.1155/2020/9095215.
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Corporate social responsibility (CSR) has a significant impact on the operation of enterprises. This study analyzes the production and coordination decisions of closed-loop supply chain (CLSC) by establishing two assumptions of endogenous and exogenous CSR. The results reveal that, for ordinary consumers, CSR is quantified as the parameter of consumer surplus, which has an impact on the patent licensing fee, revenue-sharing ratio, and so on, and which not only increases the sales quantity in CLSC but also creates more value for the manufacturer and the retailer. Considering endogenous CSR, the study found that the manufacturer’s CSR level and the manufacturer’s and the retailer’s profits both increase with the proportion of CSR-sensitive consumers. In the endogenous model, the manufacturer sets a higher wholesale price and lower patent licensing fee than in the exogenous model. Perfect coordination in the two models can be achieved by setting a revenue-sharing ratio related to wholesale price and patent licensing fee. In practice, improving the social responsibility consciousness of consumers and raising enterprises’ CSR level can achieve a win-win situation for revenues and social welfare.
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Nallusamy, S., K. Balakannan, P. S. Chakraborty, and Gautam Majumdar. "A Mixed-Integer Linear Programming Model of Closed Loop Supply Chain Network for Manufacturing System." International Journal of Engineering Research in Africa 35 (March 2018): 198–207. http://dx.doi.org/10.4028/www.scientific.net/jera.35.198.
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In the present scheme of things, in a manufacturing industry inventory is pitched as one of the significant resources that require to be handled effectively. The aim of this research article is to develop a mixed-integer linear programming model to configure the closed loop supply chain (CLSC) network and that could be optimized for maximizing the profit by determining the fixed order quantity inventory policy in various sites at multiple periods. The objective is to maximize the profit through CLSC by determining the optimal inventory of product and part mix during multiple periods. In onward supply chain, a standard inventory policy is followed when the product moves from manufacturer to end user, but it is very difficult to manage the inventory in the reverse supply chain of the product with the same standard policy. The proposed model examines the standard policy of fixed order quantity by considering three major types of return-recovery pair such as, commercial returns, end-of-use returns, end-of-life returns and their inventory positioning at multiple periods. Raw material supplier, manufacturer, distributer, retailer, customers and for major returns-collection sites like repair site, disassembly site, recycling site and disposal site were included in the network to develop this CLSC network model. The proposed model to configure the CLSC network has been solved by using IBM ILOG CPLEX OPL studio and the results of the model were analysed with numerical investigations followed by sensitivity analysis.
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Gu, Xiaoyu, Petros Ieromonachou, Li Zhou, and Ming-Lang Tseng. "Optimising quantity of manufacturing and remanufacturing in an electric vehicle battery closed-loop supply chain." Industrial Management & Data Systems 118, no. 1 (February 5, 2018): 283–302. http://dx.doi.org/10.1108/imds-04-2017-0132.
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Purpose Batteries installed on electric vehicles (EVs) should normally be removed when their capacity falls to 70-80 per cent, but they are still usable for other purposes, such as energy storage. This paper studies an EV battery closed-loop supply chain (CLSC) consisting of a battery manufacturer and a remanufacturer. The manufacturer produces new batteries by using natural resources, while the remanufacturer collects returned batteries and makes decisions based on the return quality, that is, to reuse or recycle. The purpose of this paper is to maximise the individual profits through optimising the amount of manufacturing and remanufacturing, respectively, and optimising the purchase price of returned batteries. Design/methodology/approach Based on the Nash equilibrium, this paper develops a three-period model in the CLSC. In period 1, batteries are made from raw materials; in period 2, returned batteries from period 1 are sorted into low quality and high quality. Some high-quality returns can be reused for other purposes while those non-reusable returns are recycled into materials. In period 3, all the returns are recycled into materials. The analytical results are derived. Findings The result of the analyses suggest that first, among the variables that affect the (re-)manufacturing decision, the purchase price for returned batteries plays a critical role. In particular, the price of low-quality returns has more influence than the price of high quality returns. Second, the higher purchase price for re-usable returns does not necessarily lead to a higher return rate of reusable returns. Third, the manufacturer’s profit is normally higher than the remanufacturer’s. This suggests the need to design incentives to promote the remanufacturing sector. And finaly, although it is appreciated that maximising the utilisation of batteries over the life-cycle would benefit the environment, the economic benefit needs further investigation. Originality/value Although the CLSC has been widely studied, studies on the EV battery CLSC are scarce. The EV battery CLSC is particularly challenging in terms of the reusability of returns because used EV batteries cannot be reused for the original purpose, which complicates CLSC operations. This paper explores the interrelationship between manufacturer and remanufacturer, explaining the reasons why recycling is still underdeveloped, and suggests the possibility of enhancing remanufacturing profitability.
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Mei-xiang, Wu, Shi Cheng-dong, and Sun Qiang. "Game Model of Retailers Leading Closed-Loop Supply Chain under Different Guarantee Modes." International Journal of Emerging Technology and Advanced Engineering 10, no. 10 (October 25, 2020): 71–78. http://dx.doi.org/10.46338/ijetae1020_13.
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—In order to study the retailer-led differentiated guarantee behavior of CLSC's remanufactured products, assuming that demand is influenced by differentiated guarantee period of remanufactured products and consumers' willingness to pay, three game models of unguaranteed, manufacturer's guarantee and retailer's guarantee are constructed respectively to discuss the influence of guarantee mode selection and guarantee cost parameters on each member's decision. The results show that differentiated guarantees for remanufactured products are beneficial to extending the guarantee period, reducing the price of remanufactured products, improving CLSC members and overall profits. When consumers are less sensitive to differentiated guarantee for remanufactured products, CLSC decision in each mode has little to do with guarantee cost parameters and guarantor selection. When consumers are more sensitive, the advantages of each guarantee mode are significantly different, and manufacturer guarantee is the common choice of both parties. Finally, an example is given to further verify the conclusion.
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Golara, Sina, Nasim Mousavi, Mohammad Jafar Tarokh, and Mostafa Hosseinzadeh. "Closed-Loop Supply Chain Network Design with Recovery of Glass Containers." International Journal of Strategic Decision Sciences 3, no. 4 (October 2012): 1–26. http://dx.doi.org/10.4018/jsds.2012100101.
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Reverse logistics (RL) and closed-loop supply chains (CLSC) have recently received enormous attention due to growing environmental concerns and legislations coupled with the lucrative business potential. The main purpose of this paper is to develop a closed-loop supply chain network design model capable of recovering glass containers. A multi-period multi-product mixed-integer linear programming model is proposed to maximize profit. The strategic design of the supply chain is dealt simultaneously with the tactical planning of its operation, which covers procurement, production, storage, distribution, take-back, reprocessing, reuse, and recycling. To illustrate the efficiency and practicability of the model, it is applied to a real-world case of beverage supply chain where the glass containers are either re-used or recycled into their original form, as raw materials. Finally, sensitivity analyses, from a financial perspective, have been conducted to reveal the determinants of profitable product recovery and grasp their managerial implications. The analyses showed that return rate and return acquisition cost have determinant impact on the economic viability of product recovery practice.
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Wang, Juntao, Nozomu Mishima, and Tsuyoshi Adachi. "Optimal Channel Configuration for Implementing Remanufacturing Business in a Closed-Loop Supply Chain." International Journal of Information Systems and Supply Chain Management 14, no. 1 (January 2021): 113–32. http://dx.doi.org/10.4018/ijisscm.2021010105.
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This study aims to analyze the optimal channel configuration of a manufacturer in a closed-loop supply chain (CLSC) where the manufacturer is responsible to collect used products and has a competitive dual-channel in selling new and remanufactured products respectively, including through a retailer and a third-party (Model 3PR) or by itself directly and a third-party (Model 3PM) or through a retailer and by itself directly (Model MR). Considering the manufacturer-Stackelberg, it concluded that model MR is the optimal channel configuration in terms of the sales quantity of remanufactured products and model 3PR never be the optimal one. In terms of the overall sales quantity, the profit of the manufacturer and the whole CLSC, whether model 3PM or model MR is the optimal channel configuration depends on the value of the discount perception for remanufactured products, the cost saving of producing remanufactured products, and whether considering the collection process or not.
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Ma, Chunmei. "Comparison of Cooperation Modes in a Two-Period Closed-Loop Supply Chain System considering Green Manufacturing." Mathematical Problems in Engineering 2020 (May 22, 2020): 1–19. http://dx.doi.org/10.1155/2020/9202370.
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In order to improve the efficiency of collection and green manufacturing level in a closed-loop supply chain (CLSC) system, the manufacturer invests green manufacturing efforts in product design and production process and intends to cooperate with other CLSC members to achieve excellent performance. In a two-period CLSC system consisting of one manufacturer, one retailer, and one third-service provider, a game-theoretical approach is adopted to compare the optimal decisions and profits of the three green manufacturing cooperation modes, namely, the manufacturer cooperates with the retailer and third-service provider, respectively, and the noncooperation mode is a benchmark. Moreover, the impact of different cooperation modes on CLSC decision-making is analyzed as well. The results indicate that the influence of difference among cooperation modes on CLSC decision is significant, and cooperation is always better than noncooperation. From the perspective of consumers as well as recycling and profit, although the collection rate of used products is not the highest when the manufacturer cooperates with the retailer, the price of product is the lowest and the green property of product is the most obvious; thus, this is regarded as the suitable cooperation mode after a comprehensive analysis. Besides, a coordination mechanism is designed to solve the inefficiency caused by double marginalization. Finally, numerical examples are presented to intuitively observe the relationships between decisions and profits and the impact of different parameters on them in the three modes, and some management inspirations are proposed ultimately.
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Jabarzadeh, Younis, Hossein Reyhani Yamchi, Vikas Kumar, and Nader Ghaffarinasab. "A multi-objective mixed-integer linear model for sustainable fruit closed-loop supply chain network." Management of Environmental Quality: An International Journal 31, no. 5 (June 6, 2020): 1351–73. http://dx.doi.org/10.1108/meq-12-2019-0276.
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PurposeThis paper aims to present a closed-loop supply chain (CLSC) optimization problem for a perishable agricultural product to achieve three pillars of sustainability, including minimizing total network costs and carbon dioxide emissions from different network activities and maximizing responsiveness to demands simultaneously.Design/methodology/approachThe research problem is formulated as a multi-objective mixed-integer linear programming model, and classical approaches, including the LP-Metric and weighted Tchebycheff method, have been applied to solve the optimization model. A set of test problems has been proposed to validate the model, and the results are presented.FindingsComputational time to find Pareto optimal solutions by using the weighted Tchebycheff method was twice as much as that of the LP-Metric method. Also, the result of the study is a mathematical model that can be applied to other products that are close to the fruit, such as vegetables.Research limitations/implicationsThe present study is limited to fruits supply chains and the inventory is considered at the distribution centers only. The study also considers only one type of transport.Practical implicationsThe paper can assist supply chain managers to define strategies to achieve a sustainable CLSC network configuration for the fruits.Originality/valueThis study is one of the early studies to consider environmental indicators in fruits supply chain design along with two other indicators of sustainability, namely, economic and social indicators. Therefore, this can help supply chain managers to achieve sustainability by optimizing location decisions, inventory quantities and flow between facilities.
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Tong, Lin, Kuan Yang, and Wei-Jin Xu. "Optimal Strategies for CLSC considering Supply Disruption and Carbon Tax." Mathematical Problems in Engineering 2020 (April 24, 2020): 1–14. http://dx.doi.org/10.1155/2020/9808370.
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Under the background of economic globalization, supply chain is becoming more and more complex, which is manifested in the instability of external environment. On the one hand, with the improvement of global environmental protection awareness, the government's policy tools for environmental impact (carbon tax) on the whole supply chain have become one of the major external problems faced by the supply chain enterprises; on the other hand, the intensification of competition between upstream and downstream in supply chains makes supply disruption an important proposition to be solved urgently. In this paper, the two propositions of green and supply disruption are reduced to two factors affecting the cost. The average total cost function of the manufacturer as a recycler is established. The practicability of the algorithm and the effectiveness of the model are verified by Lingo, Particle Swarm Optimization, and Genetic Algorithm, with the purpose of obtaining the optimal strategies for manufacturers who play the role of the recycler in the closed-loop supply chain.
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Tehrani, Mohsen, and Surendra M. Gupta. "Designing a Sustainable Green Closed-Loop Supply Chain under Uncertainty and Various Capacity Levels." Logistics 5, no. 2 (April 7, 2021): 20. http://dx.doi.org/10.3390/logistics5020020.
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The ever-increasing concerns of the growth in the volume of waste tires and new strict government legislations to reduce the environmental impact of the end-of-life (EOL) tires have increased interest among companies to design a sustainable and efficient closed-loop supply-chain (CLSC) network. In the real world, the CLSC network design is subject to a variety of uncertainties, such as random and fuzzy (epistemic) uncertainties. Designing a reliable and environmentally cautious CLSC with consideration of risks and the uncertainty of the parameters in the network is necessary for a successful supply-chain network. This study proposes a sustainable and environmentally cautious closed-loop supply-chain network for the tire industry, by considering several recovery options, including retreading, recycling, and energy recovery. This study aims to design and develop a robust multi-objective, multi-product, multi-echelon, multi-cycle, multi-capacity, green closed-loop supply-chain network under hybrid uncertainty. There are two types of uncertainties associated with the parameters in the network. There is an uncertainty associated with the demand, which is expressed in some future scenarios according to the probability of their occurrences, as well as fuzzy-based uncertainty associated with return rates, retreading rates, recycling rates, procurement, and production costs, which are expressed with possibilistic distributions. In order to deal with this hybrid uncertainty, a robust fuzzy stochastic programming approach has been proposed, and the proposed mixed integer programming model is applied to a case study in the tire industry to validate the model. The result indicates the applicability of the proposed model and its efficiency to control the hybrid uncertainties and the risk level in the network.
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Song, Liping, Yingluo Yan, and Fengmin Yao. "Closed-Loop Supply Chain Models Considering Government Subsidy and Corporate Social Responsibility Investment." Sustainability 12, no. 5 (March 6, 2020): 2045. http://dx.doi.org/10.3390/su12052045.
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In addition to pursuing profits, more and more international enterprises are beginning to pay attention to environmental sustainability and corporate social responsibility (CSR). How to effectively encourage enterprises to undertake more CSR and maintain the sustainable development of society has become an urgent task for managers and researchers. Under this background, this paper considers the recycling of used products for environmental sustainability and takes into account profit donation as a CSR investment. Aiming at the decision-making of single-cycle closed-loop supply chain (CLSC) with a dominant retailer when considering government subsidies and CSR investment, and based on the Stackelberg Game analysis technology, we formulate three distinct donation (CSR investment) models; the centralized system’s donation model, the manufacturer’s donation model, and the retailer’s donation model, and by doing system comparisons and numerical examples to analyze the impact of government subsidy and CSR investment on new product pricing and waste product recovery from the perspectives of government, environment and CLSC system. The results show that government subsidy is not only conducive to expanding market demand and increasing waste recycling rates, but also to improving CSR investment levels. Under the two decentralized decision-making models, regardless of whether the dominant retailer makes CSR investment, she can always get more channel profits than the manufacturer. From the view of environmental, economic, and social perspectives, the manufacturer makes CSR investment a better choice, and at this time the government has the best effect of implementing subsidy. Finally, based on the principle of cost sharing, a CSR cost sharing contract which can realize the coordination of CLSC is designed to solve the channel conflict and optimize the decision-making. Counterintuitively, the dominant retailer can gain more profits when it bears more cost in the CSR cost sharing contract.
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Pan, Wenjun, and Miao Lin. "A Two-Stage Closed-Loop Supply Chain Pricing Decision: Cross-Channel Recycling and Channel Preference." Axioms 10, no. 2 (June 15, 2021): 120. http://dx.doi.org/10.3390/axioms10020120.
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This paper focuses on the pricing problem of a two-stage closed-loop supply chain (CLSC) considering the cross-channel recycling and channel preference based on a single manufacturer and a single traditional retailer. The pricing decision problem raises from the manufacturer’s direct sales and the retailer’s retailing including recycling. Managers need to focus on intelligible management considering consumer channel preferences, cross-channel recovery and pricing strategies. According to game theory, centralized and decentralized CLSC decision models are used to provide an efficient solution to managers for the pricing problem. The centralized model consists of differential and uniform pricing strategy and the decentralized model consists of manufacturer-led Stackelberg, retailer-led Stackelberg and Nash equilibrium game, respectively. The impact of cross-channel recycling rate and channel preference on pricing and profitability in a two-stage CLSC system is explained elaborately in this study. The results show that cross-channel recovery rates and consumer channel preferences have a direct significant impact on pricing strategies including profit allocation decisions in CLSC. It demonstrated that different channel preferences leading to different pricing strategies and decision for manufacturers and retailers choices. Manufacturer’s pricing decreases when channel preferences are constant and cross-channel recovery rates increase. Retailer’s pricing remains stable as the cross-channel recovery rate has less affected on it. Furthermore, if the cross-channel recovery rates increase, then the manufacturers pricing decreases and retailers pricing increases. This information will be a helpful guideline for the manager to select suitable pricing strategies based on the company scenario.
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Zhao, Lin, and Zongyu Mu. "Channel Strategies for the Two-Period Closed-Loop Supply Chain with E-Commerce." Mathematics 9, no. 11 (June 1, 2021): 1271. http://dx.doi.org/10.3390/math9111271.
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The aim of this paper is to choose the effective selling channel and reverse channel for a closed-loop supply chain (CLSC) with the e-commerce. The authors formulated six single-selling and dual-selling channel two-period CLSC models in which the manufacturer manufactures new products in the first period and then collects used products by itself, outsourcing to or cooperating with the retailer in the second period. Some interesting and new insights obtained from comparison analysis and numerical experiments are as follows: (1) The leading manufacturer ought to add e-commerce channel, and customers’ e-commerce preference can increase the market demand, collecting rate, and manufacturer’s profit. (2) With the e-commerce channel and the retail channel, dual-collecting channel is the best for the manufacturer and system while the manufacturer collecting channel becomes the best when the collecting competition is relatively large. When the collecting competition exists, retailer collecting channel is the best for the retailer. (3) The market demand, collecting rate, the profits of all members and system will rise by increasing the remanufacturing level and discount coefficient.
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YAN, NI-NA, and BAO-WEN SUN. "OPTIMAL STACKELBERG STRATEGIES FOR CLOSED-LOOP SUPPLY CHAIN WITH THIRD-PARTY REVERSE LOGISTICS." Asia-Pacific Journal of Operational Research 29, no. 05 (October 2012): 1250026. http://dx.doi.org/10.1142/s0217595912500261.
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Closed-loop supply chain (CLSC), especially the reverse logistics system with the third-party reverse logistics providers (3PRLP) is very important for materials return, remanufacturing, repair, recovery, recycling, and reusing. In this paper, based on a one-leader and multi-follower Stackelberg game with the manufacturer being the leader, we model a multi-echelon CLSC with 3PRLP under the consideration of impacts of environmental legislation on scrap recycling. Furthermore, in order to encourage the 3PRLP to exert him to return activities we design a target rebate-punish contract between the manufacturer and the 3PRLP under both stochastic price-dependent demands and stochastic effort-dependent returns. We analyze the closed-form analytic expressions for both united optimization strategies in centralized closed-loop system and the Stackelberg strategies in decentralized system, and conclude that the wholesale price contract may not coordinate the forward supply chain and the target rebate-punish may coordinate the reverse chain under certain conditions. Finally, according to the practice of Chinese steel enterprises we carry out some simulation experiments to validate our theoretical analyses and gain some insights into the impacts of reverse logistics activities on the practitioners operations and decisions.
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Shu, Yadong, Ying Dai, and Zujun Ma. "Pricing Decisions in Closed-Loop Supply Chains with Peer-Induced Fairness Concerns." Sustainability 11, no. 18 (September 17, 2019): 5071. http://dx.doi.org/10.3390/su11185071.
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The importance of behavioral factors in the process of decision making is widely recognized in literature and practice. The aim of this paper is to examine the influence of collectors’ multiple fairness concerns on pricing decisions in a closed-loop supply chain (CLSC), which consists of one manufacturer, one retailer, and two collectors. Specifically, the collectors are concerned with both distributional fairness and peer-induced fairness. By considering fairness concerns and selecting Nash bargain solution as the reference point of fairness distribution, this paper studies the equilibrium solution of Stackelberg game models in the CLSC with symmetrical and asymmetrical information of fairness concerns, respectively. The results show that in the former case, distributional fairness is always at the cost of sacrificing the manufacturer’s profits, which is a means of gaining more benefits for the collectors. In the latter case, the profits of both the manufacturer and the collectors turn into a loss. No matter in which case, the collector who is concerned with both distributional and peer-induced fairness is always in a passive position. Generally speaking, whether the decision maker concerns fairness and whether it can be perceived by the CLSC members both impact the members’ decision making. Additionally, the utilities of both the manufacturer and the collectors receive Pareto improvement under the proposed incentive contract.
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Coenen, Jannie, Rob van der Heijden, and Allard C. R. van Riel. "Making a Transition toward more Mature Closed-Loop Supply Chain Management under Deep Uncertainty and Dynamic Complexity: A Methodology." Sustainability 11, no. 8 (April 17, 2019): 2318. http://dx.doi.org/10.3390/su11082318.
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This article develops a methodology to empirically study and cope with deep uncertainty and dynamic complexity when the actors in a traditional supply chain make a transition toward more mature closed-loop supply chain (CLSC) management. The methodology addressed calls for innovative research and decision-making approaches in this field. Mature, in this context, refers to moving operationally and mentally away from a stochastic, one-dimensional and static approach to CLSC management, towards an exploratory, multi-dimensional and dynamic approach. To empirically study and cope with deep uncertainty and dynamic complexity in a CLSC context, a conceptual framework and related methodological toolbox are developed, together called the ‘closed-loop integration: collective keystones methodology’ (hereinafter CLICK methodology). The conceptual framework entails six maturity stages, which have been defined based on the well-known capability maturity framework and the concept of double-loop learning. Based on the conceptual framework, methods to equip the toolbox have been systematically identified and evaluated. The study identified 31 potentially appropriate methods, varying from non-participatory methods, to the active engagement of actors and stakeholders, and from analytical methods to evaluation/assessment methods.
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Saha, Subrata, Izabela Ewa Nielsen, and Sani Majumder. "Dilemma in two game structures for a closed-loop supply chain under the influence of government incentives." Journal of Industrial Engineering International 15, S1 (November 16, 2019): 291–308. http://dx.doi.org/10.1007/s40092-019-00333-z.
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AbstractThe government organizations grant incentives to promote green product consumption, improve green product quality, boost remanufacturing activities, etc. through various policies. The objective of this study is to highlight pros and cons of two incentive policies, namely (1) incentive on manufacturer’s R&D investment and (2) direct incentive to consumer based on greening level of the product on the optimal pricing and investment decisions in improving used product return and greening level decisions in a closed-loop supply chain (CLSC). Optimal decisions are derived under manufacturer and retailer-Stackelberg games, and results are compared to explore characteristics of optimal decisions, consumer surplus, and environmental improvement under two marketing strategies of a manufacturer. It is found that the greening level and used product return rate in a CLSC are always higher under retailer-Stackelberg game. If the manufacturer sets a target for greening level, the CLSC members may receive higher profits if consumer receives incentive because of higher consumer surplus. However, environmental improvement may be lower. If the manufacturer sets a product return goal, then CLSC members may compromise with consumer surplus or environmental improvement for receiving higher profits. In the presence of direct incentive to consumers, CLSC members can trade with product at lower greening level for higher profits. Moreover, investment in improving used product return is always less compared to the investment in improving greening level.
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YILDIZBAŞI, Abdullah, Ahmet ÇALIK, Turan PAKSOY, Reza ZANJİRANİ FARAHANİ, and Gerhard-Wilhelm WEBER. "MULTI-LEVEL OPTIMIZATION OF AN AUTOMOTIVE CLOSED-LOOP SUPPLY CHAIN NETWORK WITH INTERACTIVE FUZZY PROGRAMMING APPROACHES." Technological and Economic Development of Economy 24, no. 3 (May 18, 2018): 1004–28. http://dx.doi.org/10.3846/20294913.2016.1253044.
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Closed-Loop Supply Chain (CLSC) management has attained appreciable attention over the last few years. CLSC management allows companies to manage their recovery and recycling activities of end products. Due to the latest developments in the world, producers are responsible for the collection, refurbishing, repairing and disassembly of end products at the end of their lives. This paper develops a mixed-integer CLSC model that is inspired by the automotive industry. In this model, we consider three Decision Makers (DM): Plant, Dismantler Center and Customer. Each DM has individual objectives and is responsible for only its own objective function under same constraints. In order to tackle the trade-offs among the objectives, we used four different Interac-tive Fuzzy Programming (IFP) approaches. The applications of the model and solution techniques are investigated in conjectural data. The paper ends with a conclusion and a call for future studies.
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Chen, Haitao, Zhaohui Dong, and Gendao Li. "Government Reward-Penalty Mechanism in Dual-Channel Closed-Loop Supply Chain." Sustainability 12, no. 20 (October 17, 2020): 8602. http://dx.doi.org/10.3390/su12208602.
Full textAbstract:
This study establishs a dual channel closed-loop supply chain (CLSC) model under a government–penalty mechanism (RPM) consisting a dual-channel manufacturer, a retailer, and the government. We consider a Stackelberg game between the manufacturer and the retailer, and the government rewards or punishes manufacturers on the basis of the collection rate of used products. This paper analyzes the influence of government RPM on the optimal decisions, the relationship between the two sales channels, and the total social welfare of the supply chain system. We find that the government RPM can improve the stability of the dual-channel supply chain and the collection rate of the used products. Moreover, we are the first to provide a method of deriving the optimal government RPM through a numerical example.
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Kaoud, Essam, Mohammad A. M. Abdel-Aal, Tatsuhiko Sakaguchi, and Naoki Uchiyama. "Design and Optimization of the Dual-Channel Closed Loop Supply Chain with E-Commerce." Sustainability 12, no. 23 (December 3, 2020): 10117. http://dx.doi.org/10.3390/su122310117.
Full textAbstract:
The depletion of natural resources and the degradation of the ecosystem have led many countries to adopt closed-loop supply activities in both their industrial and service sectors. With the widespread use of Internet technology, these aspects motivate the incorporation of e-commerce with the classical closed-loop supply chain. This study suggests a novel mixed-integer linear programming (MILP) model that addresses the integration of e-commerce with a multi-echelon closed-loop supply chain with a multi-period planning time horizon by considering dual channels in manufacturing, and recovery facilities. To validate the model, we obtain optimal decision variables and examine the robustness and applicability of the model, and comprehensive computational experiments are performed. Moreover, sensitivity analysis is carried out to illustrate the efficacy of e-commerce integration by considering the two channels in the closed-loop supply chain. Accordingly, the total cost of the dual-channel CLSC decreases with an increase in customer demand via online retailers, the returned end of life (EOL) products, recycling ratio, and recovery ratio. Some useful managerial implications are provided based on the conducted analysis.
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Shi, Wei, Haoran Chen, Xuemei Zhang, and Chenhao Ma. "Optimal Alliance Strategy and Its Impact in a Closed-Loop Supply Chain by considering Greenness and Service Effort." Mathematical Problems in Engineering 2021 (February 24, 2021): 1–17. http://dx.doi.org/10.1155/2021/6676482.
Full textAbstract:
This paper handles Stackelberg game models in light of different alliance strategies in a closed-loop supply chain (CLSC) consisting of a manufacturer, a retailer, and a third-party recycler. In this CLSC, four scenarios are examined: the decentralized case, the manufacturer and the retailer forming an alliance, the manufacturer and the third-party recycler forming an alliance, and the centralized case. And in these Stackelberg game models, a comparison between four alliance strategies is analyzed by considering greenness and service effort. The effect of alliance strategy on the decisions of the CLSC system, consumer, environment, and society is also investigated. The main objective is to find out the optimal price, greenness level, and service effort to maximize the CLSC members’ profits and give the optimal alliance strategy by using theoretical analysis. It is found that the alliance strategy improves the operation efficiency of the CLSC, and it also benefits consumers, the environment, and society. The MR alliance strategy is more effective than the MT alliance strategy, but it cannot achieve the efficiency of a centralized scenario. Finally, numerical examples are illustrated to justify the feasibility and practicability of the proposed models in reality.