Enhancing sustainability in mass customisation of consumer electronics with salvage value through supply chain financing

Abstract

ABSTRACT The consumer electronics industry is crucial in the global shift toward sustainability. To meet customers’ personalised needs efficiently and reduce production costs, electronic product suppliers increasingly focus on Mass Customization (MC) and modular production. Implementing a buyback policy for unsold module products with salvage value is a sustainable practice that reduces waste. This study explores two buyback support financing tools to enhance sustainability in the industry, enabling successful MC production. We also investigate how the salvage value based on modularity level and the buyback policy impact operational and financing decisions in the Mass Customization Supply Chain (MCSC). The research reveals that a higher modularity level positively impacts supplier’s profits and optimal capacity levels under both financing strategies. Consequently, this study offers valuable insights into elevating sustainability practices and optimising operational and financing decisions in the context of MC within the consumer electronics industry.