Closed-loop Supply Chain Research Articles

Recycling channel strategy in the presence of free-riding in the carbon neutrality era

Recycling has become a critical response to the goals of reaching a carbon peak and achieving carbon neutrality. This study explores the effects of consumer free-riding behavior, the quality of recycling services, and the costs of channel transfers on the profitability of manufacturers and retailers in a dual-channel closed-loop supply chain (CLSC), focusing on the importance of recycling practices for carbon neutrality. Using consumer utility theory and a Stackelberg game model, we analyze the dynamics among these factors. Our results show that: (i) Consumer free-riding behavior slightly increases market demand and recycling volumes, enhancing profitability for both manufacturers and retailers in the dual-channel CLSC. (ii) The quality of recycling services and the transfer costs associated with retailer free-riding behavior jointly influence the profits of manufacturers and retailers. (iii) The effect of free-riding behavior on recycling services affects both forward sales and reverse recycling channels equally. This study provides valuable insights for decision-making in sustainable development practices in the recycling sector, significantly contributing to the goal of achieving carbon neutrality.

Simultaneous Pickup-and-Delivery Production-Routing Problem in closed-loop supply chain with remanufacturing and disassembly consideration

In a context of Closed-Loop Supply Chain, Production-Routing Problem with Pickup and Delivery is presented. In its basic form, Production-Routing Problem (PRP) attempts to solve jointly Dynamical Lot-Sizing and Inventory-Routing Problems. In this paper, a novel PRP model seeking to minimize the total cost of manufacturing, remanufacturing, disassembly, inventory, and routing by taking into account the remanufacturing and disassembly processes of End-of-Life returned products is provided. Novel hybrid heuristics based on Two-Phase Iterative and Relax-and-Fix heuristics were developed and outperform Branch-and-Cut algorithm for large size instances with a small vehicle capacity. Main insights derived from sensitivity analyses are (i) managers can use the model to trade off the cost saving resulting from the integration of forward and reverse flows, on the one hand, and any additional cost incurred by the organizational changes related to the integration, on the other hand, (ii) a high level of remanufacturing rate for returned products is not necessarily profitable, and managers should develop a return policy that leads to the appropriate level of remanufacturing rate, and (iii) investing in expanding the remanufacturing or the disassembly capacities can significantly reduce the total cost until a threshold level, beyond which any further investment is not beneficial.

Recycling Cost formation and Profitability of foods and beverages firm: Evidence from Flour Milling Industries of Nigeria Plc (1991-2021)

Recycling is one of the most viable options to reuse the end of the product in the closed-loop supply chains (CLSC) management. The major focus of this study is to examine the influence of product recycling cost on the profitability of food and beverage firms. This study relied solely on secondary data sourced which was subjected to a mathematical model using regression analysis. It was observed that dependent and the independent variables has a strong positive relationship with r=0.741. The coefficient of determination r2=0.549 shows that 54.9% of the variation in profit can be explained by production cost at 95% level of significant while in the flour mills Nigeria plc, the dependent and the independent variables has a weak positive relationship with r=0.363. The coefficient of determination r2=0.132 shows that 13.2% of the variation in profit can be explained by the production cost at 95% level of significant. Finally in Dangote Nigeria plc, dependent and the independent variables has a weak positive relationship with r=0.174. The coefficient of determination r2=0.030 Shows that 03.0% of the variation in profit can be explained by the production cost at 95% level of significant.

Challenges of Ensuring Reverse Logistics in a Military Organization Using Outsourced Services

A circular economy is defined as a socially responsible, policy-driven model of business or enterprise operations that contributes to more sustainable society for both current and future generations. Although the implementation of circularity principles in the economy is a long process, the impact it creates on sustainability is long-term, and its benefits will be felt by all future generations. Therefore, the development of circularity in the European Union’s economy must progress, and more and more organizations should implement it as a good practice. The object of the article is the cooperation of civil sector outsourced services and the country’s military forces in the field of reverse logistics. Using a qualitative research methodology, the article demonstrates the potential for the country’s military forces to support the European Union’s circular economy initiative in the context of sustainability. This includes reducing the consumption of natural resources by increasing the value of the closed-loop supply chain and keeping products suitable for consumption as long as possible. Considering the fact that there is limited information dissemination within the military sector, this research presents one of the few opportunities to examine the integration of civilian and military sector efforts for sustainable development from a practical and scientific perspective. The conducted research demonstrates that the closed-loop supply chain and the military’s reverse logistics processes take place but are not fully integrated into one whole. They lack a unified whole directed towards a common goal when reverse logistics activities are correlated to closed-loop supply chain and national circular economy goals, as well as ensuring sustainability. Outsourced services are available and used in the military, in many cases even for reverse logistics activities (repair, storage, transportation, modernization, etc.). This research made it possible to prepare a conceptual model for the organization of the military’s reverse logistics using outsourced services, thereby ensuring the creation of a sustainable supply chain.

Designing a sustainable supply chain for battery PVC cases: A multi-objective optimization approach

Nowadays, Polyvinyl Chloride (PVC) and its derivatives are being used in a wide range of products, including car battery cases, due to their corrosion resistance and exceptional durability. As PVC production has grown, the amount of non-hazardous waste generated from PVC products has dramatically increased. In this context, incorporating PVC waste management into the PVC supply chain can effectively address the PVC waste generation issue. This study investigates the design of the Polyvinyl Chloride Closed-Loop Supply Chain (PVCCLSC) based on a triple-objective model for Abadan Petrochemical Company. The first objective aims to minimize the total cost of PVCCLSC, the second objective focuses on minimizing environmental impact, and the third objective maximizes the improvement of Occupational Health and Safety (OHS). In this study, an integrated solution approach is developed encompassing four main phases: (i) Developing an accelerated K-means clustering algorithm, along with the Elbow Method (EM) and Average Silhouette Method (ASM), to estimate the quality of returned PVC products, (ii) Employing a robust optimization method to capture the uncertainty, (iii) Implementing an augmented ε-constraint method to solve the proposed multi-objective model, and (iv) Applying a Bender’s Decomposition Algorithm (BDA) to solve the model and determine optimal solutions. As a result of the proposed BDA, relative optimality gaps have been reduced from 4.56 % in the conventional solution to zeros, and runtime has been reduced from 55 min to 20 min. Furthermore, as a result of this study, more than 44 % of returned PVC products should be recycled using the tertiary method to fulfill environmental requirements.

Modeling the Decision and Coordination Mechanism of Power Battery Closed-Loop Supply Chain Using Markov Decision Processes

With the rapid growth of the new energy vehicle market, efficient management of the closed-loop supply chain of power batteries has become an important issue. Effective closed-loop supply chain management is very critical, which is related to the efficient utilization of resources, environmental responsibility, and the realization of economic benefits. In this paper, the Markov Decision Process (MDP) is used to model the decision-making and coordination mechanism of the closed-loop supply chain of power batteries in order to cope with the challenges in the management process, such as cost, quality, and technological progress. By constructing the MDP model for different supply chain participants, this paper investigates the optimization strategy of the supply chain and applies two solution methods: dynamic programming and reinforcement learning. The case study results show that the model can effectively identify optimized supply chain decisions, improve the overall efficiency of the supply chain, and coordinate the interests among parties. The contribution of this study is to provide a new modeling framework for power battery recycling and to demonstrate the practicality and effectiveness of the method with empirical data. This study demonstrates that the Markov decision-making process can be a powerful tool for closed-loop supply chain management, promotes a deeper understanding of the complex decision-making environment of the supply chain, and provides a new solution path for decision-making and coordination in the supply chain.

Forecasting e-commerce consumer returns: a systematic literature review

AbstractThe substantial growth of e-commerce during the last years has led to a surge in consumer returns. Recently, research interest in consumer returns has grown steadily. The availability of vast customer data and advancements in machine learning opened up new avenues for returns forecasting. However, existing reviews predominantly took a broader perspective, focussing on reverse logistics and closed-loop supply chain management aspects. This paper addresses this gap by reviewing the state of research on returns forecasting in the realms of e-commerce. Methodologically, a systematic literature review was conducted, analyzing 25 relevant publications regarding methodology, required or employed data, significant predictors, and forecasting techniques, classifying them into several publication streams according to the papers’ main scope. Besides extending a taxonomy for machine learning in e-commerce, this review outlines avenues for future research. This comprehensive literature review contributes to several disciplines, from information systems to operations management and marketing research, and is the first to explore returns forecasting issues specifically from the e-commerce perspective.

Remanufacturing and channel strategies in e-commerce closed-loop supply chain.

This paper studies the recycling and remanufacturing mode and sales channel issues in the closed-loop supply chain. Specifically, this study establishes an e-commerce closed-loop supply chain consisting of a manufacturer and an e-commerce platform, and divides the recycling model into recycling by the manufacturer or recycling by the platform. Considering two common sales models in e-commerce platforms: the resale model and agency model, combined with the recycling model, four different research scenarios are formed. We use backward induction to solve the Stackelberg game problem and explore the remanufacturing and channel strategies of the manufacturer and the e-commerce platform. The research results show that for the manufacturer, under the same recycling model, when consumers' preference for remanufactured products and the sensitivity of recycling volume to recycling prices are low, he will prefer the resale model. Under the same sales model, the manufacturer always prefers the recycling model in which he is responsible for recycling. However, the choice of platform is contrary to that of the manufacturer. In the resale model, both the manufacturer and the platform will choose to recycle by themselves, which cannot achieve a win-win situation. Under the agency model, when consumers' preference for remanufactured products is high and the sensitivity coefficient of recycling volume to recycling price is low, supply chain members can achieve a win-win situation, and the scope of the win-win situation decreases as the unit production cost of new products increases. In addition, rising consumer preference for remanufactured products will lead to lower consumer surplus.

Literature Review on Decision-Making and Coordination of Closed-loop Supply Chain

Effective treatment and recycling of waste products in the operation of closed-loop supply chain can not only save resources and energy, reduce environmental pollution, but also reduce costs and increase profits for enterprises. All participants in closed-loop supply chain often make decisions with the goal of maximizing overall benefits. This paper aims at summarizing the research progress of decision-making and coordination of closed-loop supply chain, summarizing the factors that affect the decision-making of closed-loop supply chain from the non-economic behavior of decision-makers, green investment, uncertainty, government and policy, and summarizing the commonly used coordination mechanism of closed-loop supply chain, so as to explore the future research direction.

A responsive closed-loop supply chain network design under demand uncertainty

A closed-loop supply chain (CLSC) is important in developing a green industrial supply chain and a sustainable economy. This study addresses the challenge of designing a closed-loop supply chain network (CLSCN) under demand uncertainty by integrating forward and reverse logistics. A continuous approximation (CA) approach is proposed to solve a responsive CLSCN model. An inventory-sharing strategy is applied in the continuous approximation (CA) approach to further solve uncertain demand in a CLSCN. We conduct sensitivity analysis to demonstrate how the optimal design characteristics and the responsive supply chain network (SCN) design depend on various scenarios. A responsive CLSCN's network density is higher than a responsive SCN's. The changes in network density of the distribution center (DC) are not significantly affected by increased risks of uncertainties. The proposed model has demonstrated substantial cost savings compared to the traditional responsive CLSCN model.

Study on Recycling Decisions of Recycling Dismantlers of Used Power Batteries Under the Influence of Recycling Efforts

In this study, a closed-loop supply chain consisting of a waste power battery recycler and a power battery manufacturer will be constructed on this basis. The function models under different decision-making modes are constructed with profit maximization as the objective function, and the simulation analysis discusses how the power battery manufacturer should set the purchase price of the raw materials obtained from the dismantling and processing of the waste power battery recycling dismantler, as well as how the waste power battery recycling dismantler should make decisions on the extent of its own efforts under the scenario where the waste power battery recycling dismantler is recycling only its efforts.

Recycling Mode Choice in a Textile and Apparel Closed-Loop Supply Chain considering Blockchain

The development of the textile and apparel (T&A) industry has led to an increasing focus on recycling used products. Remanufactured product quality raises consumer concerns, and blockchain can effectively solve this problem. We establish a closed-loop supply chain (CLSC) in which a manufacturer, a retailer, or a third-party recycler collects used T&A products to examine the most efficient recycling mode with and without blockchain and the impact of blockchain on CLSC decisions. The results show that (1) if the manufacturer’s recycling cost coefficient is relatively low, used T&A products are collected directly by the manufacturer. Otherwise, the responsibility for recycling used T&A products falls to the retailer or the third-party recycler. It is noteworthy that the manufacturer’s choice of recycling mode remains unchanged whether a blockchain is implemented or not. (2) The implementation of blockchain by the manufacturer and the retailer can increase profits and consumers also benefit when the cost of validating blockchain units remains below a certain threshold. (3) When the recycling cost coefficient exceeds a certain threshold, the implementation of blockchain increases prices and recycling rates. These findings offer CLSC members’ management insights into how to select the optimal recycling mode and the consequences of implementing blockchain.

Closing the Gap: A Comprehensive Review of the Literature on Closed-Loop Supply Chains

Closing the Gap: A Comprehensive Review of the Literature on Closed-Loop Supply Chains

Pricing strategy with quality improvement in a dual collection channel closed-loop supply chain under return uncertainty

Pricing strategy with quality improvement in a dual collection channel closed-loop supply chain under return uncertainty

Exploring remanufacturing conveniency: An economic and energetic assessment for a closed-loop supply chain of a mechanical component

The concept of sustainability has become pervasive in society, compelling industries to embrace circular economy principles supported by institutions, such as the European Commission. The circular economy promotes recovery, sharing, and recycling, which poses challenges in transitioning from linear to circular models. Remanufacturing is a key strategy in this framework by enabling the recycling of discarded products, improving resource efficiency, and reducing waste. Therefore, this study investigates the key factors influencing decision-making in remanufacturing processes within the supply chains of mechanical components, identifying scenarios where remanufacturing proves to be more effective than purchasing new products. This research provides valuable insights for businesses considering the adoption of remanufacturing in their supply chains. While previous studies on remanufacturing have predominantly focused on economic aspects, this research addresses both economic and energy-related implications. The study proposes a three-stage methodology to compare three scenarios and select the optimal one: a traditional supply chain for mechanical components without remanufacturing (Scenario 1), a supply chain with remanufacturing and direct customer-manufacturer interaction (Scenario 2), and a supply chain with remanufacturing and indirect customer-manufacturer interaction facilitated by a distribution center (Scenario 3). This methodology was applied to components made of steel, aluminum, and titanium. The results reveal that the remanufacturing volume and the percentage of material preserved by conventional manufacturing process are the most critical variables to consider when evaluating the introduction of remanufacturing in supply chains. Specifically, the lower the former values the more remanufacturing tends to be preferred. Furthermore, remanufacturing is usually favored by the energetic analysis, while the economic analysis shows mixed results. The developed models and the obtained findings could assist organizations in making strategic decisions regarding end-of-life strategies and assessing the economic and energy viability of integrating remanufacturing processes into their supply chains, as opposed to favoring new component production.

Addressing uncertainty in closed-loop supply chain networks: a multi-objective approach to integrated production and transportation problems

Purpose This study aims to address the inherent uncertainties within closed-loop supply chain (CLSC) networks through the application of a multi-objective approach, specifically focusing on the optimization of integrated production and transportation processes. The primary purpose is to enhance decision-making in supply chain management by formulating a robust multi-objective model. Design/methodology/approach In dealing with uncertainty, this study uses Pythagorean fuzzy numbers (PFNs) to effectively represent and quantify uncertainties associated with various parameters within the CLSC network. The proposed model is solved using Pythagorean hesitant fuzzy programming, presenting a comprehensive and innovative methodology designed explicitly for handling uncertainties inherent in CLSC contexts. Findings The research findings highlight the effectiveness and reliability of the proposed framework for addressing uncertainties within CLSC networks. Through a comparative analysis with other established approaches, the model demonstrates its robustness, showcasing its potential to make informed and resilient decisions in supply chain management. Research limitations/implications This study successfully addressed uncertainty in CLSC networks, providing logistics managers with a robust decision-making framework. Emphasizing the importance of PFNs and Pythagorean hesitant fuzzy programming, the research offered practical insights for optimizing transportation routes and resource allocation. Future research could explore dynamic factors in CLSCs, integrate real-time data and leverage emerging technologies for more agile and sustainable supply chain management. Originality/value This research contributes significantly to the field by introducing a novel and comprehensive methodology for managing uncertainty in CLSC networks. The adoption of PFNs and Pythagorean hesitant fuzzy programming offers an original and valuable approach to addressing uncertainties, providing practitioners and decision-makers with insights to make informed and resilient decisions in supply chain management.

Creating a sustainable closed-loop supply chain: An incentive-based contract with third-party E-waste collector

This paper proposes a closed-loop supply chain model to study the impact of product returns and awareness program on e-waste supply chain. The study focuses on the sustainability aspects of e-waste management and the effects such initiatives bring about to the environment at large. Reusing and recycling of collected products in manufacturing will improve the supply of scarce resources and reduce reliance on virgin raw materials. Engaging in CLSC can enhance brand reputation and competitiveness through sustainability while reducing the health risks to informal recycling workers by formalizing practices. The proposed model consists of a manufacturer, retailer, and third-party collector (TPC) under wholesale price and incentive contracts with deterministic demand. From the analysis it is observed that integrating a third-party collector with higher recycling rate boosts the total profit of the decentralized setting with a TPC. The centralized model, with a single decision maker, results in lower retail prices and higher collection rates compared to the decentralized models thereby commanding a higher overall profit.

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.

Decisions for power battery closed-loop supply chain: cascade utilization and extended producer responsibility

Decisions for power battery closed-loop supply chain: cascade utilization and extended producer responsibility

Evaluating carbon cap and trade policy effects on a multi-period bi-objective closed-loop supply chain in retail management under mixed uncertainty: Towards greener horizons

In response to the growing imperative of addressing environmental concerns and aligning with governmental regulations in supply chain management, this study navigates the optimization landscape of closed-loop supply chains through the lens of carbon cap and trade policy. The optimization model aims to account for the impact of consumer demands, distribution networks, and retail operations on the overall closed-loop supply chain dynamics. The innovative approach introduces an optimization model designed to grapple with the challenges posed by imprecise information within an intuitionistic type-2 fuzzy framework. The bi-objective mixed-integer model integrates pivotal objectives, including carbon emissions reduction, total cost minimization, and trade policy compliance. For a nuanced comprehension of the proposed model, we present three numerical examples, offering clarity on its complexities. Following this, a sensitivity analysis visually depicts the impact of fluctuations in demand and capacity on the defined objective functions. Furthermore, these conclusions unveil promising avenues for future research and exploration within the ambit of this study.