Reverse Supply Chain Model Research Articles

Dual channel closed-loop supply chain coordination with exchange policy, sales efforts and green innovation under uncertain market

ABSTRACT This paper explores a dual-channel supply chain within an uncertain environment where a manufacturer produces a green product and a retailer makes sales efforts to attract a higher customer base. Moreover, we incorporate a reverse supply chain model in which the manufacturer retrieves end-of-used products from customers through a collection initiative. Simultaneously, the retailer gathers end-of-used products from customers by implementing an exchange policy facilitated through a coupon applied to the product’s selling price. Then, we explore centralized, manufacturer Stackelberg, option contracts and cost-sharing contracts strategies to maximize supply chain profits under various circumstances. Subsequently, a numerical example is undertaken to showcase the utility of the models and explore sensitivity that examines how different parameters impact the supply chain’s profit. Findings suggest that the supply chain members will be profitable if they engage in the option contract model under a suitable value of the option price and exercise price.

Reverse supply chain decisions with online and offline dual recycling channels considering consumer fairness concerns and channel preference

Online recycling is becoming more prevalent as a result of the quick development of innovative technologies to enhance the recycling system. Based on consumer fairness concerns and channel preferences, we establish an online and offline dual-recycling channel reverse supply chain model in which a processor dominates and a recycler follows according to Stackelberg game theory and investigates the impact of two consumer’s behavioral preferences upon supply chain decisions. The results show that: (1) for the game leader, the impact of consumer fairness concerns is greater than that of channel preference; (2) for the game follower, the impact of channel preference is greater than that of consumer fairness concerns; (3) entrusting the recycler to collect can help the leader reduce profit losses caused by consumer fairness concerns.

Environment and economic analysis of reverse supply chain scenarios for remanufacturing using discrete-event simulation approach.

The study covers the concepts involved in reverse supply chain modeling using the case of a manufacturing company. The purpose of this study is to build a sustainable reverse supply chain model for resource conservation through remanufacturing of stator shafts by using a discrete-event simulation approach. The simulation studies in the reverse supply chain have taken up cases of either plastic or electronic waste remanufacturing, while very limited studies deal with simulation of sustainable reverse supply chains using a manufacturing industry case study from international customers. In this study, reverse supply chain using simulation study in manufacturing sector is carried out using Arena Rockwell simulation software. The simulation model is built using discrete-event simulation for returns from customers of two developed countries, i.e., Germany and the USA to Chennai, India. The study emphasizes full container load and less than container load modes of shipment scenarios and multiple return cases. The comparative analysis suggests that the value-added and non-value-added time of the reverse supply chain is slightly greater in the less container load scenario. The wait time per entity in remanufacturing processes similar for both shipment scenarios varies significantly based on return cases. The cost and carbon emission associated with transportation, in the reverse supply chain inclusive of social carbon cost, have also been estimated. Therefore, the study proposes a possible sustainable reverse supply chain framework that could be adopted by different manufacturing industries and yield opportunities for performance improvement.

A Reverse Supply Chain Model to Reduce Waste of Solar Panel in Ho Chi Minh City, Vietnam

The reverse supply chain (RSC) recently attracted many Vietnamese authorities, enterprises and academia owing to the rise of concern on the environment and regulations of waste process. Along with rapid development, Vietnamese manufacturing network has become tightly strained when the end-of-life (EOL) items are not taken back by their manufacturers but end up being processed disorderly in different local businesses. A distressing example is the waste of imported solar panels in Vietnam. Since the number of solar panels has grown steadily in Vietnam recently, we speculate that the network flows of EOL solar panel of Vietnam will be very large and complex in a few years. In order to help Vietnamese government establish efficiently RSC, our paper will apply the mixed-integer linear programming (MILP) and demonstrate an optimized solution for the RSC of EOL solar panel in Ho Chi Minh City. Indeed, via our collected data from current financial market of Ho Chi Minh city, our MILP shows that the optimal cost-reduction is 11219 USD, even with limited constraints of only two landfills and very few collection facilities in Ho Chi Minh city at the moment. This result of our proposed RSC demonstrates that a significant profit is definitely possible when the number of collection facilities in Ho Chi Minh city increase in the future. Also, our MILP approach is flexible for decision-makers to achieve a satisfactory solution.This is an Open Access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium provided the original work is properly cited.

Strategic Analysis of the Recycler considering Consumer Behavior Based on E‐Platform Recycling

Internet + platform recycling is a new model of recycling that provides more ways to recycle WEEE. Considering consumers’ preference for channels, we construct a single‐channel reverse supply chain model (Model‐S) and two dual‐channel reverse supply chain models (Model‐DU and Model‐DD) consisting of a recycler and an e‐platform and consider the unified pricing and differentiated pricing strategies in the dual‐channel models. By solving the optimal decisions of members using game theory, we innovatively investigate the influence of channel competition and consumer behavior on e‐platform recycling and provide a theoretical basis for recyclers to develop pricing strategies in different situations. We find that it is beneficial for the recycler to build its own channel and adopt the differentiated price strategy (Model‐DD); more WEEE also can be recycled in this model. However, the e‐platform prefers Model‐S or Model‐DU, which depends on the consumers’ preference and the disposal revenue of WEEE. In addition, consumers’ preference for e‐platform is good for them but harmful for the recycler and has a negative impact on recycling quantities. These results aim to provide a theoretical basis for channel management and pricing strategies in the reverse supply chain and further enrich the managerial insights.

Industry 4.0 technologies assessment: An integrated reverse supply chain model with the whale optimization algorithm

In recent years, integrated reverse supply chain practices have been adopted by companies that desire to reduce the negative environmental and social impacts within their supply chains. models and solutions assisted by industry 4.0 technologies have been developed to transform products in the end of their life cycle into new products with different use. There are several methods with different technologies to recycle the wastes, which have been selected and weighted based on the indicators of the industry 4.0 revolution and the wastes sent to recycling centers based on the technology weight. The understudy model is multi-objective, including minimizing transportation costs and environmental effects and maximizing customer response demand. The whale optimization algorithm and the NSGA-II algorithm were also used to solve this model. The results obtained from whale optimization and genetic algorithms have been comprised of each other through comparative indicators of quality, dispersion, uniformity, and solving time. The results showed that the whale algorithm has a higher ability to explore and extract possible points and achieve optimal solutions in all cases. The NSGA-II algorithm was also superior to the whale algorithm in terms of uniformity and solving time. The investigation of changes in solving time with increasing problem size was another confirmation of the NP-hard nature of the understudied problem.

Integrated reverse supply chain model for food waste based on industry 4.0 revolutions

The present research offeres a model to the advantage of operations for the food reverse supply chain by perfor-mancing Industry 4.0 Revolutions model of expanding a fuzzy multi-phase model for the food waste gathering reverse supply chain. This study introduces, a household waste recycling machine, which symbolizes the Industry 4.0 Revolutions. Also, electric-type vehicles have been considered for collection and delivery in accordance with the Industry 4.0 Revolutions. The rate of technology has been described in recycling stations. Several methods with different technologies to recycle food waste have been selected and assessed based on the Industry 4.0 Revolutions indicators. The food wastes are sent to recycling stations, that is places maintained, operated or used to store, buy or sell wastes before they recycled with appropriate technology. The understudy model is multi-objective, maximizing the benefit of recycling and customer response and minimizing the adverse effects of environmental pollution and transportation costs. In this research, the whale optimization algorithm is applied. The present work proposes an end-to-end solution for Reverse Supply Chain Management for food waste based on the Industry 4.0 Revolutions.

Reverse supply chain conceptual model for construction and demolition waste.

Construction and demolition waste (CDW) substantially contributes to environmental degradation because of its intrinsic characteristics of fast and high generation volume, low recycling rate, and low revenue margins. A systemic problem is that recycling facilities are not usually a part of a reverse supply chain (RSC) specific for CDW. This makes the recovery process costs prohibitive, especially where companies are unable to receive and process large volumes of waste continuously. This paper presents a systematic analysis of the extant literature and utilizes the results accrued to develop a conceptual RSC model for CDW. In so doing, the research seeks to provide clarity on this phenomenon, while simultaneously stimulating wider academic discourse and further research endeavours. A mixed philosophies epistemological design was adopted using both interpretavism and constructivism to undertake a qualitative systematic analysis of the literature. A process diagram was produced to represent the conceptual model (CM) and thematically group the nodes into three key swim lanes that delineate the boundaries between distribution, manufacturing, and sourcing and warehousing processes. Within each swim lane, stakeholders were incorporated as key actors. A further layer of nuanced complexity was added to illustrate the key actors involved in the process, government strategies, and activity flow paths. This novel CM offers both practical and theoretical contributions to existing knowledge and signposts a future research direction. Such work will demystify reverse logistics for managing CDW, and assist government policy-makers to develop informed policies that reduce the negative environmental impact of construction activities.

Optimizing a Reverse Supply Chain Network for Electronic Waste under Risk and Uncertain Factors

Minimizing the impact of electronic waste (e-waste) on the environment through designing an effective reverse supply chain (RSC) is attracting the attention of both industry and academia. To obtain this goal, this study strives to develop an e-waste RSC model where the input parameters are fuzzy and risk factors are considered. The problem is then solved through crisp transformation and decision-makers are given the right to choose solutions based on their satisfaction. The result shows that the proposed model provides a practical and satisfactory solution to compromise between the level of satisfaction of constraints and the objective value. This solution includes strategic and operational decisions such as the optimal locations of facilities (i.e., disassembly, repairing, recycling facilities) and the flow quantities in the RSC.

Reverse supply chain systems optimization with dual channel and demand disruptions: Sustainability, CSR investment and pricing coordination

In the information age, demand disruptions are challenging for supply chain (SC) systems. This study explores a reverse supply chain (RSC) system dealing with demand disruptions in its online channel. The disruptions hurt the company's revenue since a fraction of the online channel demand will be lost. It is also important to determine the level of investment in sustainability to meet both the cap-and-trade rule imposed by the government on the company and the customers' expectations about the sustainability level of products. In the reverse channel, the company collects the used products through a collector whose efforts increase the collection volume. Since the earnings of the reverse channel highly depend on the collection volume, finding an effective strategy to entice the collector to collect a desirable number of used products is critically important for the company. In order to find a proper strategy for resolving these challenges, we analytically develop an RSC model and derive the optimal pricing, sustainability level, and corporate social responsibility (CSR) decisions under demand disruptions for both the decentralized and centralized RSCs. We then propose a combination scheme by using the combined two-part-tariff (CTPT) contract. We find that the proposed coordination scheme is efficient because it not only improves the profits of the RSC and its members but also enhances the environment. Moreover, the CTPT contract can properly allocate the SC surplus among the RSC members based on their bargaining powers.

A comprehensive reverse supply chain model using an interactive fuzzy approach – A case study on the Vietnamese electronics industry

• A reverse supply chain model for electronic waste integrating risks and uncertainties is developed. • Fuzzy approach is adopted to cope with uncertain data. • The proposed model is validated by conducting a case study of an electronics company. • The results show that the proposed model can perform better than the current model established by the company. Reverse supply chains (RSCs) have gained much attention from governments, companies and scholars due to increasing levels of environmental concern, resource depletion and regulation. In Europe and other developed countries, RSCs have been imposed by regulation so that manufacturers take greater responsibility for their end-of-life products. In developing countries like Vietnam, this situation is much more complicated since there are many destinations for end-of-life products other than the take-back systems of their manufacturers. Consequently, product flow quantities to RSC facilities in Vietnam, as well as other parameters, are vague and uncertain. To help electronics companies set up more effective RSCs, this study employs a fuzzy approach to account for such uncertain parameters. Furthermore, risk factors are integrated into the proposed model to make it more comprehensive. The solution approach gives much greater flexibility for decision-makers to obtain a satisfactory solution.

The use of Data Envelopment Analysis in evaluating Pareto optimal solutions of the sustainable supply chain models

Abstract The background of sustainability is summed up by three words: Planet, People, and Profit. The 3Ps of sustainability require multi-objective research. This study analyzes the evaluation process of multi-objective optimization. Since it is highly critical for decision makers to understand the results of multi-objective models, the Data Envelopment Analysis (DEA) approach is used to put Pareto-optimal results of the model in an order and to analyze them. A case study of a reverse supply chain model with four objectives namely economic, social, environmental and legal is taken into consideration. Results of the DEA showed that the method can be effectively used in interpreting the results both for academics and practitioners.

Development of a reverse supply chain model for electronic waste incorporating transportation risk

The quantity of Electronic waste (E-waste) is considerably growing due to the rapid development of technology. To diminish the influences of E-waste to the environment and recover raw materials, the reverse supply chain (RSC) has been examined. Most research focuses on minimizing the total cost of the system, however, does not integrate risk factors related to RSC operation. Risks generally derive from transportation activity in E-waste RSC such as delays for pick up, breakdown of trucks, the uncertainty of dangerous materials which might lead to disruptions and higher cost. Therefore, this paper aims to develop a mathematical model for minimizing the total cost of E-waste RSC which integrates transportation risk. A mixed integer linear programming is utilized in the model and addressed by an optimization software. The results of the proposed model can determine the optimal locations and the amount of used products transported within the RSC network. The numerical example also demonstrates that the movement of materials or components in the RSC network is considerably affected by considering transportation risk. The suggested model can assist decision makers about establishing RSC network in which risk elements are incorporated.

Study of the Coordination Mechanism of a Wood Processing Residue-based Reverse Supply Chain

A revenue-sharing contract was introduced into a three-echelon wood processing residue-based reverse supply chain model to maximize the supply chain profit and realize a win-win situation for all participants. The optimal expected supply chain profits under different decision policies and the acceptable range of revenue-sharing coefficients were analyzed. Finally, the model was applied in a case study where sawdust was recycled to produce black fungus. Results showed that revenue-sharing can effectively enable supply chain coordination. Within the domain of the revenue-sharing coefficients, the production cost decreased by 5.91% and the corresponding demand increased by 16.09%, resulting in an increase of 7.73% in the supply chain profit. A comparison was made between the three-echelon and a two-echelon supply chains, and the results showed that the two-echelon supply chain would become less competitive than the three-echelon supply chain with the increase of recycling cost. Additionally, the profit shares of all parties in the three-echelon supply chain depended mainly on the revenue-sharing coefficients, which were determined by the positions of the parties and their bargaining power.

Pricing Models for Dual-channel Reverse Supply Chain Considering Regional Differences under “Internet Recycling” Mode in China

In recent years, the Internet technology has been deeply influencing recycling industry to make it more intelligent and interconnected. However, most existing papers on “Internet Recycling” neglected the problem of pricing strategy under online and offline channels for different levels of recyclers. Moreover, the effect of regional differences has been emphasized a lot in dual-channel forward supply chain, but recycling field has seldom been concerned about it. In this paper, a recycling system consisting of one recycling center and several third-party recyclers (TPR) was investigated based on traditional mode and dual-channel mode. The dual-channel reverse supply chain model is transformed from traditional mode by the introduction of online channel. It involves two recycling modes, as recycling centre for online recovery and “Recycling center+TPR” for offline recovery. By establishing pricing strategies based on Stackelberg game model, the impacts of regional differences were analysed. Finally, numerical analysis was given to illustrate the effectiveness of the pricing mechanisms and strategies.

Reverse supply chain practices in developing countries: the case of Morocco

PurposeThe purpose of this paper is to investigate reverse supply chain (RSC) practices and their obstacles using case studies of Moroccan companies. The authors present the main findings of case studies’ analysis along with a discussion of an RSC framework for further directions of research.Design/methodology/approachA qualitative approach was adopted and semi-structured interviews with Moroccan companies were conducted using an interview guide.FindingsThe authors present an RSC model that encompasses remanufacturing, refurbishing and disposal processes. The authors believe that this model would constitute a promising framework for further research. The findings show that the successful implementation of RSC depends on many factors, but the company’s attitude (proactive or conservative) is one of the most critical determinants in RSC initiatives. Furthermore, the results of the case studies indicate two types of inhibitors: external and internal. These findings confirm the results of previous research on environmental sustainability obstacles in general and RSC obstacles in particular.Research limitations/implicationsThis study has some limitations that provide future research opportunities. Because this study is qualitative, further statistical support is needed to justify wider generalisation of its findings. Further studies might therefore investigate RSC practices in developing countries other than Morocco to increase the external validity of the results.Practical implicationsThe findings can help firms to gain better understanding of their RSC and particularly the link between forward and RSCs. Consequently, companies can upgrade their business models to better control their RSC activities.Originality/valueThe relevant literature about RSC practices has mainly targeted manufacturing sectors in developed countries, and few studies have been conducted on developing countries. Research on RSC practices in developing countries in general and African countries in particular is sparse. This is one of the first articles written to address this gap by investigating RSC practices in Morocco.

Optimizing an E-Waste Reverse Supply Chain Model while Incorporating Risk Costs

The rapid growth of Electronic Waste (E-waste) in recent years has created serious influences on the environment and society. The highly potential solution to mitigate this issue is the Reverse Supply Chain (RSC) which can reuse and recover E-waste materials. Risks generally derive from a RSC operation such as collection, transportation and treatment risks, but most studies ignore risk effects on the total cost of E-waste treatment in the RSC model. This paper aims to develop a mathematical model for an E-waste RSC considering risk costs. This proposed model applied mixed integer linear programming and solved by a mathematical programming language. An illustrative example is examined to demonstrate the effectiveness of the proposed model. Sensitive analysis is also presented. The results can determine the optimal locations of facilities and the flow of materials or items in a RSC network. Furthermore, the network design decisions have been changed considerably while risk costs are incorporated.

Designing contracts for a reverse supply chain with strategic recycling behavior of consumers

In this paper, we propose five typical contracts to coordinate decentralized reverse supply chains with strategic recycling behavior of consumers. First, a reverse supply chain model with strategic recycling behavior of consumers is developed based on the classical newsvendor problem. Next, after analyzing the wholesale price contract, we find that the collection quantity of used products increases with the wholesale price. Then, we develop a two-stage price contract and find that under this contract the manufacturer could increase the collection quantity by offering a direct incentive to the collector. Afterwards, using the centralized optimal profit as the benchmark, we compare the wholesale price contract with the subsidy contract and the cost-pooling contract respectively. The results show that the subsidy contract is more beneficial to the manufacturer, while the cost-pooling contract is helpful to the collector, yet both lead to lower transfer prices than the wholesale price contract for reverse supply chains. Finally, we design an indemnity contract and conclude that the collector's maximum performance is achieved only when the transfer price equals to the indemnity. The total profit of the reverse supply chain under the indemnity contact is not less than that under the wholesale price contract.

Alliance or no alliance—Bargaining power in competing reverse supply chains

This work investigates how bargaining power affects negotiations between manufacturers and reverse logistics providers in reverse supply chains under government intervention using a novel three-stage reverse supply chain model for two scenarios, a reverse logistics provider alliance and no reverse logistics provider alliance. Utilizing the asymmetric Nash bargaining game, this work seeks equilibrium negotiation solutions. Analytical results indicate that the reverse logistics provider alliance increases the bargaining power of reverse logistics providers when negotiating with a manufacturer for a profitable recycled-component supply contract; however, manufacturer profits are often reduced. Particularly in the case of an recycled-component vender-dominated market, a reverse logistics alliance with extreme bargaining power may cause a counter-profit effect that results in the decreases of profits for all players involved, including buyers (i.e., manufacturers) and allied recycled-component venders (i.e., reverse logistics providers). Additional managerial insights are provided for discussion.

Optimal replenishment policy for a deteriorating green product: Life cycle costing analysis

In the last few decades, enterprises are trying to recycle the used products to reduce the negative impact on environment. This results in the need for reverse supply chain model especially for deteriorating items. The proposed model considers vendor managed inventory strategy and conducts a life cycle cost and benefit analysis for green electronic products. The mathematical analytical approach is used to solve the proposed model. The results show that selling price, deteriorating rate, holding cost, product return rate, and remanufactured quality have a significant effect on the model. This study can provide managerial insights into improving the design of a green-supply chain.