Closed-loop Supply Chain System Research Articles

Recycling, pricing decisions, and coordination in the dual-channel closed-loop supply chain: A dynamic perspective

As the “Internet+” mode promotes transforming and upgrading the traditional recycling industry, dual-channel recycling has become the focus of commercial activities. Based on such background, this paper constructs the differential game models of the dual-channel closed-loop supply chain (DCCLSC) system in the complete non-cooperation (DN), incomplete cooperation (D), and complete cooperation (C) scenarios by applying game theory. The novelty is that recycling and pricing decision problems are investigated for the DCCLSC system from a dynamic perspective. A cost sharing-transfer payment contract is designed to realize the perfect coordination of the DCCLSC system. Moreover, the extended models with government intervention and inventory management are proposed. Finally, the numerical examples are used to verify the feasibility and validity of the addressed results. The results show that 1) online retail price is higher than offline retail price when μ>μN; 2) The retail price in the DN model is always lower than the D model, and their comparative relationship with the C model is closely related to the ratio of recoverability rate; 3) The recoverability rate and the profit of DCCLSC system are highest in the C model; 4) Competition and government intervention can create a win-win situation with improving environmental and economic benefits.

Closed-loop Supply Chain Model Analysis of Home Appliances based on Promotional Effort and Recycling Effort

Nowadays, a large number of home appliances have entered the node of renewal, if they can be properly disposed of and utilised, used home appliances can also be converted into renewable resources to achieve the economic cycle, and at the same time, green living and circular economy are increasingly accepted by the public. Recycling of used home appliances has both economic and social benefits. At the same time, promotional efforts invested in the market for home appliances have an obvious effect on increasing their market demand. Therefore, it is necessary to study the closed-loop supply chain of home appliances based on promotion and recycling efforts. In this paper, we use literature analysis, mathematical analysis and Stackelberg game analysis to construct a closed-loop supply chain model for home appliances based on promotional and recycling efforts after determining who is the promoter among manufacturers and retailers, and then compare and analyse the decisions and benefits of the supply chain members, taking into account their centralised and decentralised decision-making. The results of this paper show that: (1) when home appliance manufacturers, retailers and third-party recyclers of used home appliances make decentralised decisions, there is a double marginal effect, i.e., the supply chain members only consider their own benefits while ignoring the benefits of the supply chain as a whole, which results in the failure of this closed-loop supply chain system of home appliances to be coordinated. (2) When the retailer's promotional effort is greater, both the retail price and the retailer's profit are lower. (3) The greater the recycling effort of the third-party recycler of used home appliance products, the higher its recycling price, i.e., the consequent increase in recycling costs, leading to a decrease in its profit.

Optimizing sustainable cocoa supply chains: A Closed-loop model considering a profit-sharing policy and value loss during storage

In various cocoa-producing nations, cocoa stands as a vital commodity, serving as the generates significant waste in the form of husks, which could potentially be repurposed into organic fertilizers. Unfortunately, most existing studies on cocoa supply chains overlook the management of cocoa waste through a closed-loop supply chain (CLSC) framework. This study addresses this gap by presenting a comprehensive model for a cocoa CLSC system that considers value loss within the supply chain. Moreover, a profit-sharing strategy is introduced to foster sustained collaboration among stakeholders. Through the optimization of decision variables e.g. the size of transfer batch, this model aims to maximize total profit within the cocoa supply chain. The result shows that the optimal size of transfer batch is 459 units which leads to 44,782,000 IDR total profit. Additionally, by reusing cocoa husks as organic fertilizers within a closed-loop supply chain, this model also contributes to reducing environmental impact and promoting sustainability within the cocoa industry.

Remanufacturing closed-loop supply chain decision comparison under multiple carbon policies

Abstract This article constructs a closed-loop supply chain system including a single manufacturer and a single retailer and studies the optimal decision problem of enterprises under three different carbon reduction policies. Three supply chain game models were constructed to research the impact of different carbon reduction policies on the decisions of supply chain members. The results revealed that:(1) The carbon emission reduction level of the manufacturer is negatively correlated with the recycling price of used products and the abatement cost factor;(2) When the carbon trading price is equal to the tax rate, the carbon cap and trade policy is more conducive to promoting the manufacturer to improve the level of carbon emission reduction;(3) When the carbon trading price is low, mixed carbon policy is more favorable for the manufacturer to increase its carbon emission reduction. The research results of this study can provide certain suggestions for the government to implement a reasonable carbon reduction policy.

Dynamic Analysis of a Dual-Channel Closed-Loop Supply Chain with Heterogeneous Players and a Delay Decision

This paper considers a dual-channel closed-loop supply chain (CLSC) consisting of a manufacturer who wholesales new products through the traditional retail channel and distributes remanufactured products via a direct (online) channel established by himself. Two dynamical Stackelberg game models are developed based on the assumption that the retailer is an adaptive player, and the manufacturer is a bounded rational player who may adopt a delay decision. The existence and locally asymptotic stability of the Nash equilibrium are examined. Moreover, the impacts of key parameters on the complexity characteristics of the models and the performance of chain members are studied by numerical simulation. The results reveal that the excessively fast price adjustment speeds of the manufacturer, the larger consumers’ discount perception for the remanufactured products, and the consumers’ preference for the direct channel have a strong destabilizing effect on the Nash equilibrium’s stability. Furthermore, the delay decision implemented by the manufacturer could be a stabilizing or destabilizing factor for the system. The manufacturer will tolerate a considerable profit reduction while the retailer gains more profits when the dual-channel CLSC system enters periodic cycles and chaotic motions.

A coordination model for closed-loop supply chain systems with a single manufacturer and retailer

This paper develops a coordination model for a closed-loop supply chain (CLSC) system consisting of a single manufacturer and retailer where market demand depends on the green technology level, retailer’s selling price, and promotional efforts. The manufacturer manufactures products from raw materials to finished products and adapts them for sale to meet key market demands. Used products from consumers will be returned to the retailer to be processed by remanufacturing under a technology license, and the rest will be returned to the manufacturer for remanufacturing, refurbishing, recycling, or waste disposal. The models are formulated mathematically and constructed under three scenarios – centralized, decentralized, and a Stackelberg game led by the manufacturer. Numerical examples are given to illustrate the results of the developed model. The result suggests that both types of investment can assist the closed-loop supply chain in enhancing its financial and environmental performance. It also suggests that lowering emissions levels through green technology might increase product selling prices, hence increasing sales volume.

Analysis of Green Closed-Loop Supply Chain Efficiency under Generalized Stochastic Petri Nets

In this paper, we aim to explore the operational performance of a green closed-loop supply chain under random events. A green closed-loop supply chain model based on generalized stochastic Petri nets (GSPN) is built using the Petri nets theory. According to the isomorphic relationship between GSPN and continuous-time Markov chains, the relevant Markov model is converted from GSPN, and the steady-state probability of the model is then calculated. Finally, the model is analyzed from the aspects of time performance and operation efficiency of each link. Compared to previous studies, this paper finds that: when the whole green closed-loop supply chain system reaches a dynamic equilibrium state, the product has a steady-state probability at all stages, and thus the overall operational performance of the system can be obtained; compared with the recycling of waste products, the green product takes a longer time in the production and distribution stages; since marketing, packaging processing, market feedback, and market demand formulation account for a high level of utilization throughout the life cycle of green products, decision makers need to focus on the supervision and management of these links. Managers of green closed-loop supply chain systems need to adjust their decision-making strategies in a timely manner according to the performance level of the system in the steady state to realize the efficient operation of the system. This paper not only provides theoretical support for the improvement of the operational efficiency of green closed-loop supply chain system, but also provides new ideas for the research of green closed-loop supply chain operation mode.

Research on the Impact of New Parts Price Increase on the Stability of Closed-Loop Supply Chain

In the closed-loop supply chain system of component remanufacturing, new parts suppliers are likely to be affected by certain factors that lead to sudden increases in supply prices, and this sudden increase in new parts prices may trigger the chain collapse of the closed-loop supply chain system and impact the stability of the closed-loop supply chain. Therefore, this paper combines closed-loop supply chain theory, evolutionary game theory, and system dynamics theory, which are internalized to construct a complex system model. Furthermore, the impact of different price increases of new parts on the stability of the closed-loop supply chain is analyzed through scenario simulation. The results show that a 25% increase in the price of new parts will delay the time for remanufacturers and retailers to reach a stable state of product flow, reduce the profitability of remanufacturers and retailers, and inhibit the willingness of remanufacturers to carry out high-green production in the early stage. A 50% increase in the price of new parts can break the closed-loop supply chain from the remanufacturer, severely undermining the stability of the closed-loop supply. According to the simulation results, this paper presents a timely government dynamic reward and punishment optimization scheme for remanufacturers to improve the tolerance level of the closed-loop supply chain for the price increase of new parts and to provide a reference for enhancing the stability of the closed-loop supply chain and optimizing the government supervision strategy.

Closed-loop supply chain decision considering information reliability and security: should the supply chain adopt federated learning decision support systems?

AbstractThe study considers the closed-loop supply chain (CLSC) decision using federated learning platform (FL platform), establishes a CLSC game model including one manufacturer, one retailer and one third party, analyzes the influence of FL platform on optimal decisions and revenues of CLSC system from the perspectives of information reliability, information security and investment cost, and establishes a cost-sharing and revenue-sharing contract (CSRS contract) to coordinate CLSC system. Results show that, the greater consumers' recognition of the remanufactured product, the higher its price and revenue; using FL platform can guarantee the degree of consumer information security, which in turn has a constructive effect on the CLSC; when the FL platform is not adopted, the manufacturer will raise more revenue by misrepresenting the manufacturing and remanufacturing costs; the FL platform would provide some incentive for manufacturers to disclose true cost information and improve the CLSC revenue; an increase in investment costs would lead to a reduction in revenue, so CLSC members would need to make investment decisions based on revenue comparisons before and after using the platform; finally, within the feasibility of the contract parameters, the CSRS contract both maximizes optimal revenue of CLSC system and improves revenue per member.

Switching Control of Closed-Loop Supply Chain Systems with Markov Jump Parameters

The switching system model of a closed-loop supply chain with Markov jump parameters is established. The system is modeled as a switching system with Markov jump parameters, taking into account the uncertainties of the process and the inventory decay factors. The Markov switching idea is applied to the controller design and performance analysis of the system to effectively suppress the bullwhip effect while ensuring the stability of the closed-loop supply chain system. Simulation examples are presented to illustrate the validity of the results obtained.

Integrating Bass model in a closed loop supply chain system with low and high product return scenario under carbon cap and trade policy

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The more the better? The impact of the number and location of product recovery options on the system dynamics in a closed-loop supply chain

The hybrid closed-loop supply chain (CLSC) system, commonly observed in the consumer electronics and automotive industries, may include one or more product recovery options, such as product repair and core remanufacturing. From system dynamics perspective, one important strategic decision is how many recovery options (and in which locations) should be invested to minimise poor dynamic behaivor such as bullwhip effect. This motivates us to investigate the impact of the number and locations of recovery options on the dynamic behaviour. We adopt step and sinusoidal functions as customer demand, representing a sudden sustained shift in demand and seasonally unadjusted demand, respectively. We also consider different return rates for each echelon of the CLSC. Our simulation results indicate that the bullwhip effect and inventory variance can be significantly reduced in all CLSC scenarios in comparison to a traditional open loop supply chain. However, a increased number of product recovery options does not improve the dynamic performance of the CLSC. Moreover, the bullwhip effect and inventory variance may be reduced if product recovery options are located at downstream echelons that are closer to end customers (e.g. retailers) and have high return rates. Further, return rates play a key role in mitigating the bullwhip effect, consistent with the prior literature. Our findings provide strategic insights for managers seeking to improve their CLSCs performance from system dynamics perspective.

Carbon Reduction Subsidy, Remanufacturing Subsidy or Consumer Recycling Subsidy? A Low-Carbon Closed-Loop Supply Chain Network Operation Decision

To promote carbon emission reduction and resource reuse, this study is devoted to studying the impact of government subsidy policies on the operation decision of a low-carbon closed-loop supply chain system. In the production stage, governments can use carbon reduction subsidies and remanufacturing subsidies to reduce the green behavior costs of manufacturers; in the recycling stage, governments can use consumer recycling subsidies to increase the recycling willingness of consumers. In this study, we introduce these three subsidy policies into the target function of the subsidized members. Using the Nash non-cooperative game and variational inequality, we developed a low-carbon supply chain network equilibrium model to examine the impact of subsidy policies on the system operation decision. The results show that, under the three subsidy policies, raising the subsidy level can help to improve the recycling rate, promote the reduction in carbon emissions and improve the profits of retailers; however, manufacturers’ incomes increase only when the carbon reduction subsidy level is below a certain threshold. Notably, under the coexistence of three subsidy policies, the carbon reduction subsidy policy has a more significant impact on the system. Finally, the numerical results show that, when the subsidy level is higher than six, although the increase in carbon reduction subsidy level leads to a decrease in the profits of manufacturers, this policy has the best contribution to the environmental benefits of the system. Our results can serve as guidelines for governments when designing the optimal subsidy programs to achieve the ultimate goal of establishing an environmentally friendly supply chain network system.

A customer-centric IoT-based novel closed-loop supply chain model for WEEE management

Waste electrical and electronic equipment (WEEE) has been one of the widest and soaring solid wastes worldwide. Circular economy, as a sustainable paradigm, promotes closing the loop of e-products to prolong the life of WEEE. Hence, a sustainable Internet of things (IoT)-based closed-loop supply chain (CLSC) system is established considering the economic, environment and social dimensions. Due to the reality constraints, a simulation model with two scenarios is constructed to consider the customers’ behavior in the system. The attribute importance of customers’ behavior is analysed. Second-hand price and buy back price are shown to be two highly important factors, followed by peer pressure and social influence. Additionally, we present a sustainability assessment with the extant system using life cycle assessment, showing that our proposed system is more sustainable. Appropriate WEEE management using the proposed IoT-enabled system makes more profit and can reduce more greenhouse gas emissions and heavy metal contamination. In addition, with applying the proposed system, the number of people being protected from diseases caused by heavy metals can be significantly reduced.

Managing the Material Flow in Textile and Clothing Closed-loop Supply Chain with Product, Material, and Energy Recoveries: A Conceptual Framework

The emerging era of fast fashion has broadened the issue of sustainability and post-consumer waste in the textile and clothing industry. Textile and clothing manufacturers carry out Reverse Logistics (RL) and Closed-loop Supply Chain (CLSC) operations to manage waste related to used garment products. This study reviews existing literature on RL and CLSC in the textile and clothing industry and develops a conceptual framework for material management. This study proposes a framework to manage the flow of material in CLSC with three recovery alternatives, i.e. product, material, and energy recovery. We suggest a CLSC model involving a textile manufacturer, garment manufacturer, fashion retailer, and MRF (Material Recovery Facility). We propose an RL scheme with 100% recovery and no disposal activity. The proposed model allows the CLSC system to recover waste into energy and utilise it as an alternative energy in the upstream supply chain. We discuss some of the model limitations along with its challenges for implementation.

A hybrid differential evolution algorithm for a location-inventory problem in a closed-loop supply chain with product recovery

Product recovery is an important business because of its great economic, social, and environmental benefits in practice. In this paper, a location-inventory problem (LIP) in a closed-loop supply chain (CLSC) is investigated to optimize facility location and inventory control decisions by considering product recovery. The objective is to optimize facility location and inventory control decisions to minimize the total cost of business operations in a closed-loop supply chain system. We formulate this problem as a mixed-integer nonlinear programming model and design a modified hybrid differential evolution algorithm (MHDE) to solve it efficiently. Finally, numerical results are presented to validate the performance of the new algorithm. The results show that MHDE is more efficient and effective than Lingo and other algorithms for the research problem under study. Managerial insights are also derived for business managers to improve their supply chain performance.

Dynamics and risk assessment of a remanufacturing closed-loop supply chain system using the internet of things and neural network approach

Dynamics and risk assessment of a remanufacturing closed-loop supply chain system using the internet of things and neural network approach

Manufacturer-retailer coordination in a closed-loop supply chain system with emission reduction, government incentives, and energy-saving level

Manufacturer-retailer coordination in a closed-loop supply chain system with emission reduction, government incentives, and energy-saving level

ECONOMIC PSYCHOLOGY ANALYSIS OF RECYCLERS' EMOTIONAL STABILITY IN CLOSED-LOOP SUPPLY CHAIN UNDER UNCERTAINTY

BackgroundIn today's society, with the sustainable development of economy, material products are rich and diverse. The production speed of products has far exceeded people's needs. Emission reduction and environmental protection have become people's new pursuit. Closed loop supply chain should consider not only product life cycle and recycling, but also economic and environmental benefits. It has become the focus of scholars all over the world. Closed loop supply chain refers to the complete supply chain cycle from procurement to final sales, including product recovery and reverse logistics supported by life cycle. It is a highly complex process. In the closed-loop supply chain, the simplest form is composed of manufacturers, retailers and recyclers. Recycler is the most critical link in the new closed-loop supply chain system, which is not available in the traditional supply chain. Therefore, this paper mainly studies the change of recyclers when exogenous variables fluctuate from the perspective of economic psychology.Research Objects and MethodsMost scholars use short-term static methods when studying the uncertainty of recyclers in closed-loop supply chain. It is particularly important to analyze the uncertain factors in the closed-loop supply chain. In order to analyze this problem, this paper first improves the closed-loop supply chain model of capital flow and logistics coupling, so as to better simulate the real closed-loop supply chain. Secondly, the sensitivity analysis function of Vensim software is used to simulate the impact of exogenous variables on the inventory value and capital value of recyclers in the closed-loop supply chain model. At the same time, in order to verify the impact of recyclers' emotional stability, this study adopts the following scale. The communication anxiety scale adopts 15 questions of the Interaction Anxiety Scale (IAS) compiled by Leary, with a single dimension and a 5-level score, from 1 to 5 to “very inconsistent”. The higher the score, the greater the degree of social anxiety. The emotion regulation self-efficacy scale adopts the emotion regulation self-efficacy scale (RES) revised by Caprara. The 12 questions are divided into three dimensions: expressing positive emotions, managing depression / pain and self-efficacy of managing anger / anger, with 4 questions in each dimension. A 5-level score is adopted, from 1 to 5, which means “very inconsistent” to “very consistent”. The higher the score, the higher the degree of self-confidence in regulating their emotions. In the study, Cronbach's α The coefficient is 0.80. The aggression scale adopts the aggression scale (bpaq) compiled by Buss and PerryThe scale has 29 questions and is divided into four dimensions: physical aggression, verbal aggression, anger and hostility. The higher the score, the stronger the attack. In this study, Cronbach's α The coefficient is 0.85. The depression questionnaire adopts Beck's revised depression Inventory-II (BDI-II). The questionnaire has 21 questions, with a single dimension. The higher the total score, the heavier the degree of depression. The data were obtained by spss19 0 and amos17 0 for analysis.Resultsthe 19 exogenous variables were divided into four categories: Manufacturer related parameters, retailer related parameters, recycler related parameters and other related parameters. The sensitivity of these 19 parameters to recycler inventory and capital in closed-loop supply chain is simulated and analyzed. Through the comparative analysis of sensitivity chart, it can be seen that the manufacturer's inventory adjustment time, the retailer's safety inventory coefficient, the retailer's smoothing time, the retailer's inventory adjustment time, the collector's fixed expenditure and the collector's initial inventory value are positively correlated. And have a significant impact on collectors' inventory and emotional stability. The reason is that appropriate time adjustment helps to reduce work pressure and naturally improve job satisfaction.Conclusionin the closed-loop supply chain, the fluctuation of the same exogenous variable in the same range has a more significant impact on the recycler's inventory than on the recycler's capital. For recyclers, the decline of inventory value has a positive impact on the capital of recyclers, while the decline of capital value has a negative impact on the capital of recyclers. The impact of retailer order smoothing time on recycler inventory and capital is uncertain. Therefore, recyclers should strengthen fund management, establish insurance mechanism and prepare reserves to prevent the impact of external variable fluctuations on recyclers' funds. At the same time, in view of the uncertainty caused by exogenous variables related to manufacturers and retailers on recyclers' funds and inventory, recyclers need to deal with it through information sharing, compensation mechanism, incentive and other ways.AcknowledgementsSupported by a project grant from National Natural Science Foundation of China (Grant No.71764019), the National Social Science Foundation of China (Grant No.19BGL187), the Planning Project of Philosophy and Social Science of Inner Mongolia (Grant No.2021NDB082), Inner Mongolia Natural Science Foundation (Grant No.2021MS07016 and 2020MS07020) and Research Center for Resources, Environment and Energy Development Strategic.

A System Dynamic Model of Closed-Loop Supply Chain considering Recovery Strengthening and Product Differentiation

Considering the strengthening effect of recovery on demand and the product differentiation, a multifactor closed-loop supply chain (CLSC) system dynamics (SDs) model is established and is simulated using the Vensim software. Based on the simulation data, influences of factors of “policy effect,” “recovery delay time,” “recovery strengthening,” and “recovery channel competitions” on the CLSC are analyzed. The results demonstrate that the order amplification and inventory amplification are all better than those of the traditional supply chain. Demands for remanufactured products and new products both reach the stable states in the later period. In addition, the variance analysis indicates that all the factors have a significant effect on the order and inventory amplifications in CLSC. Finally, some managerial implications are put forward.