Impact of product-design strategies on the operations of a closed-loop supply chain

Abstract

This study investigates product design and its impact on the operations of a two-echelon closed-loop supply chain (CLSC). Research findings reveal that remanufacturing does not necessarily enhance the profitability of the supplier or the manufacturer, but adjusting product-design strategies helps to curb loss if profitability suffers. An environmental impact analysis identifies an interval for the base unit remanufacturing cost, within which remanufacturing is beneficial. We then obtain the condition under which the environmental impact can be mitigated by product design. These results shed insights for supply chain managers in their operational decisions and policy-makers in properly regulating remanufacturing activities.