Reverse Supply Chain Research Articles

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.

Blockchain Technology: The Role of Integrated Reverse Supply Chain Networks in Sustainability

ABSTRACT This research explores the role of Blockchain Technology (BCT) integrated with Reverse Supply Chain Networks (RSCN) and evaluates the relationship between BCT and sustainability performance. A qualitative research design was employed to develop a conceptual framework for BCT in RSCN. This research collected and analysed primary and secondary data from four cases as focal-actors. These focal-actors are from multi-industries in Jordan, namely food, pharmaceuticals, electronics, and toys. These actors are lead-firms and have experience working with RSCNs and technology applications such as BCT. Primary data were acquired from interviews with managers working in these industries, which were supported by the analysis of secondary data that identified two types of themes: internally focused and externally focused BCT-integrated drivers of RSCNs. The analysis also identified how they leverage sustainability performance improvements, including their use of RSCN approaches and features. This research is one of the few attempts to explore BCT integrated into RSCN for better sustainability performance that contributes to the theoretical and practical knowledge of supply chains within emerging economies. All types of actors-as-stakeholders involved with national programs and projects can adopt the new framework. The key findings contribute to the field of RSCN where the adoption of BCT as a broad-based strategy to attain sustainability goals and reverse chain activities along the supply chain is a goal.

The evaluation of energy consumption in transportation and processing of municipal waste for recovery in a waste-to-energy plant: a case study of Poland.

Refuse-derived fuel (RDF) can be produced from combustible materials contained in municipal waste. This article investigates energy and material flow of waste in different scenarios for production of RDF from bulky waste, separately collected waste, and mixed municipal solid waste (MSW). We compare the proportion of energy consumption in transportation, handling waste, and processing using data from the waste collection company in South Poland. The findings show the components of the reverse supply chain consuming the highest value of energy. A model of material and energy flow has taken into consideration collection of waste and transportation by two categories of waste collection vehicles: light commercial vehicles and garbage trucks. The shipping of RDF from pre-treatment facilities uses tipper semi-trailers and walking floor trailers. The findings of the study show production of RDF from municipal solid waste consumes almost 10% of energy potential in RDF. Less energy is required for the production of RDF from bulky waste (2.2-4.8%) or separately collected waste (1.7-4.1%) depending on the efficiency of collection and selected vehicles. Transportation consumes the greatest portion of energy. For mixed municipal solid waste (MSW), it can reach 79%; for separated collection waste, 90%; and for bulky waste, up to 92% of the total energy consumed. Comparing emissions for two categories of the collection vehicles, no significant difference was found for the bulky waste collections. For mixed MSW and separately collected waste, the emissions are higher for garbage trucks. A recommendation for practitioners is optimization of routing to achieve a higher collection rate at a minimized route length. For transportation of RDF to WtE plants, vehicles with higher loading capacity are essential.

CLASSIFICATION OF QUANTITATIVE MODEL SCENARIOS IN A CLOSED-LOOP SUPPLY CHAIN USING UNDERLYING FACTORS AND VARIABLES: A RESEARCH REVIEW

In a closed-loop supply chain area, the concept of sustainability is one of the primary factors that motivates companies to survive in a dynamic market. The purpose of this paper is to present a literature review of quantitative models in the remanufacturing process, especially mathematical models such as pricing decisions and cost models, reviewed from various scientific journals. Challenges to meet market demands, to boost efficient operational costs, and to increase profits have made researchers interested in deeply exploring this issue. Studies in the reverse supply chain area ensure that the supply process runs effectively and efficiently, meeting a level that is as good as when implementing the forward supply chain. Coordination and collaboration among companies, core acquisition strategy, model character behavior, and reverse channel structure are some characteristics of the quantitative models within the area of a closed-loop supply chain. Mapping was arranged to identify the involvement of research variables (core acquisition cost and remanufactured product price) and factors that were considered in the mathematical model of core acquisition (quantity and quality). Furthermore, the related literature on the issue was analyzed based on the involvement of the considered variables and factors. Finally, future research opportunities are presented as the result of the conducted literature review in this study.

A novel hybrid multi-criteria group decision-making approach with intuitionistic fuzzy sets to design reverse supply chains for COVID-19 medical waste recycling channels

The COVID-19 pandemic has led to exponential growth in COVID-19 medical waste (CMW) generation worldwide. This tremendous growth in CMW is a major transmission medium for COVID-19 virus and thus brings serious challenges to medical waste (MW) management. Designing an efficient and reliable CMW reverse supply chain in this situation can help to prevent epidemic spread. Nowadays, the assessment of CMW recycling channels has become a challenging mission for health-care institutions, especially in developing countries. It can be seen as a complex multi-criteria group decision-making (MCGDM) problem that requires the consideration of multiple conflicting tangible and intangible criteria. Nevertheless, few academics have been concerned about this issue. Moreover, current MCGDM methods have limited support for CMW recycling channel evaluation and they do not consider hospitals’ reverse supply chain strategy when evaluating. Thus, this study presents a novel MCGDM approach based on intuitionistic fuzzy sets (IFSs) and the VIKOR method for assessing the capacity of CWM recycling channels. According to the characteristics of CMW, processing flow and the TOE (Technology, Organization and Environment) theoretical framework, we established a new CMW recycling channel capacity evaluation index system which makes our proposed method more targeted and efficient. In the decision-making process, we integrate the best-worst method (BWM) and entropy to determine the decision makers (DMs) weighting in a more comprehensive way, considering both subjective and objective criteria, which was ignored by many MCGDM methods. A new aggregation operator called IFWA is proposed by us, considering the priority of DMs. Based on both the ranking of capacity and disposal charges, we then position the alternatives in the recycling channel priority index (RCPI) matrix constructed by us. According to this PCPI matrix and the reverse supply chain strategy of hospitals, a more reasonable CMW allocation strategy is determined and a more efficient CMW reverse supply chain is designed. Finally, a real case study from Wuhan was examined to illustrate the validation of our approach.

Modelling the cause and effect relationship risks in reverse logistics supply chains for demolition waste

PurposeThe reverse logistics supply chain (RLSC) for demolition waste management (DWM) is a complex process that inherits significant interdependent risks. However, studies on the RLSC have not explicitly identified the risks of its inter-relationships by disentangling their effects on operational performance. Accordingly, this paper aims to identify and assess the inter-dependencies of the risks in the RLSC to improve quality-related operational performance.Design/methodology/approachA sequential exploratory mixed-method research approach, consisting of qualitative and quantitative methods, was employed. The qualitative approach involved 25 semi-structured interviews, whereas the 18 subsequent structured interviews were conducted with stakeholders in the entire RLSC as part of the quantitative method. These were used to identify the cause and effect relationships of the identified risks. The data were analysed using thematic analysis, and the Bayesian belief network (BBN) technique was used to develop a conceptual risk model.FindingsIn total 20 risks in four RLSC sub-processes, namely, dismantling and on-site process, off-site resource recovery process, marketing of secondary products and residue disposal, emerged. Among cause and effect relationships of identified risk factors, inferior quality of secondary products was found to have the strongest relationship with customer satisfaction. Under-pricing of dismantling job, improper landfill operations and inadequacy of landfill levy are independent risks that initiate other risks down the supply chain. The aggregate effects of these risks affect customer dissatisfaction of the end-product, as well as health and safety risks in on-site, off-site and residue disposal.Research limitations/implicationsThis study only identify the cause and effect relationships of the identified risks within the RLSC for DWM operations. It has not targeted a specific construction material or any secondary production, which could be practiced through a case study in future research.Practical implicationsThe results encourage the investigation of RLSC process quality by maintaining the relationship between recycler and customer to enable a safe workplace environment. Hence, the role of relevant practitioners and government is inseparable in supporting decision-making. Future research could discuss the impact of those inter-related risks in relation to time- or cost-related operational performance criteria.Originality/valueThis study contributes to the field through presenting the first major study on the identification and assessment of the inter-dependencies of the risks in the RLSC in South Australia. The RLSC process mapping had been identified as a tactical and operational management approach. However, the risk management process is a strategic management approach. Therefore, the integration of both process mapping and the risk management approaches in one platform is germane to construction management research.

Coordination issues in managing the reverse supply chain: a systematic literature review and future research directions

PurposeReverse supply chain (RSC) is one of the ways to handle product returns efficiently. Recovery of residual value from product returns also helps in achieving sustainability. Its successful implementation requires coordination among all the channel members involved in the activities, from the acquisition to collection to the disposition of returned products. This article aims to review the literature about coordination issues in the RSC.Design/methodology/approachA systematic literature review of 151 articles published during 2004–2021 is carried out. Theory, context and methodology (TCM) framework of the literature review is used to identify the research gaps for future research directions.FindingsThis study identifies the characteristics of RSC coordination. It includes channel structures; coordination mechanisms; performance measuring parameters; the methodology applied and explored industries. The review shows that game-theoretical modeling in RSC coordination is the most commonly used method to coordinate the channels. It was found that issues like disruption, fairness and corporate social responsibility are not explored in-depth and offer much potential for future research.Originality/valueThere are very limited studies on coordination issues in the RSC. The proposed articles add value by considering RSC issues from different strategic, government, consumers' behavior and functionality decision-making point of view.

The Role of Product Certification in the Transition towards the Circular Economy for the Construction Sector

The present study explores the environmental quality (natural and recycled content, recyclability, life cycle method) of a sample of certified construction products available in different database in Italy (Remade in Italy, Atlante dell’Economia Circolare, Observatory Recycle-Legambiente Report, Accredia). The results evidence the identification of a wide range of construction products with different certified recycled contents and Italian origin under the certification standard “Remade in Italy”. Moreover, 42% of the certified products rely on the use of LCA for the assessment of the environmental impacts, while 22% of certified products integrate the features of recycled content with the recyclability at the end-of-life. Overall, results show the role certifications may have in increasing the information available on products and their environmental quality, including their traceability in the reverse supply chain, becoming a potential driver for CE adoption and a wider development for such products.

Quantifying the Bullwhip Effect in a Reverse Supply Chain: The Impact of Different Forecasting Methods

The reason for this study is that the bullwhip effect can pose very serious consequences for enterprises, such as increased production costs, additional manufacturing costs, excessive inventory levels, excess storage costs, large capital overstocking, and excessive transportation costs. Thus, the problem for this study is that quantifying the bullwhip effect in a reverse supply chain and comparing the impact of different forecasting methods on it. The objective of this paper is the bullwhip effect (BE) in a reverse supply chain (RSC). In particular, this study proposes a quantitative expression of the BE in a RSC, that is, B E R = V a r q t / V a r r t , and analyzes the impact of different forecasting methods (e.g., the moving average technique (MA), the exponential smoothing technique (ES), and the minimum mean square error forecasting technique (MMSE)) on the bullwhip effect. We evaluate the conditions under which the collector should select different forecasting methods based on the BE. We use simulation date and get some conclusions that, in some cases when using the MMSE method, the BE does not exist in a RSC. This finding is significantly different from the results on the BE in a forward supply chain. Moreover, the MMSE method can reduce the lead-time demand forecast error to the greatest possible extent, which allows the BE to reach the lowest level.

Forecasting the Number of End-of-Life Vehicles: State of the Art Report

AbstractAcademics and practitioners have shown a growing interest in automobile reverse supply chain (RSC) management as a result of the rise of circular economy and the development of Industry 4.0. Accurate quantity prediction enhances the efficiency of all decision levels in automobile RSC, not only the recovery of end-of-life vehicles (ELVs). Therefore, a comprehensive state-of-the-art review, evaluating ELVs quantity forecasting methodologies and summarizing the main variables influencing forecasting outcomes, is conducted to throw shed light on future research directions.

Plastic Waste Management in India: Challenges, Opportunities, and Roadmap for Circular Economy

Plastic waste (PW) is one of the most rapid-growing waste streams in municipal solid waste all over the world. India has become a global player in the plastic value chain. Despite low consumption, domestic generation and imports create a significant burden on the overall waste management system, which requires in-depth understanding of the scenario and pathways that can mitigate the crisis. Although Indian researchers have widely researched technology-related issues in academic papers, a substantial knowledge gap exists in understanding the problem’s depth and possible solutions. This review article focuses on current plastic production, consumption, and waste generation in India. This review article mainly analyzes data and information regarding Indian PW management and highlights some critical issues such as reverse supply chain, effective PW management, source-specific recovery, and PW rules in India. Comprehensively, this review will help to identify implementable strategies for policymakers and research opportunities for future researchers in holistic PW management and recycling in India, focusing on the circular economy and sustainable development goals.

Compensation for Cargo Claims in Reverse Supply Chains

The circular economy is essential to combat climate change. As part of the circular economy, supply chains are converted into closed-loop supply chains as this prevents non-recoverable waste and is thus more sustainable than traditional linear supply chains. The reverse supply chain is the part of the closed-loop supply chain that represents the phase whereby goods, at the end of their life span, are sent to a recycling or recovery facility. It is essential that goods in reverse supply chains reach their destination instead of being discarded along the way. In this article the authors presume that the current compensation systems in the international transport conventions discourage carriers or participants to close the material loop. The reason for this is that the compensation systems in international transport conventions are primarily based on the value of the transported goods. Because an inherent characteristic of goods in a reverse supply chain is that they have a negligible or low value, a financial incentive is lacking for the carrier to take care of the goods and make sure they reach their destination. The authors found several solutions to overcome these flaws. One is including a financial incentive in the transport conventions by making use of the principles for determining the customs value of imported goods. Taking a bottom-up or top-down approach are two other solutions explored in this article. In the case of the bottom-up approach, private parties include different contract models to facilitate the successful closed material loop, whereas the top-down approach introduces legal instruments to governments to intervene if the value for the compensation between the parties is too low.

THE NEXUS BETWEEN ORGANISATIONAL CAPABILITIES, ORGANISATIONAL READINESS AND REVERSE SUPPLY CHAIN ADOPTION

Successful Reverse Supply Chain Adoption (RSC) adoption requires a clear identification and understanding of Organizational Capabilities, assets, and resources internally and externally. Towards this end, this research assesses the nexus between organisational capabilities and RSC Adoption with a focus on the mediation role of organisational readiness. A survey method was used to achieve the research objectives. Different manager levels from the Jordanian industrial sector were selected by using a convenient sample technique. SMART PLS 3 was used to conduct Structural Equation Modelling (SEM). The outcomes represent a significant influence for internal organisational capabilities on the RSC adoption. As a mediation result, organisational readiness has a mediation role between internal organisational capabilities and the RSC adoption.

Complexity of Reverse Supply Chain Pricing Game Model Based on Recycler Heterogeneity Behavior

Recycling and remanufacturing is one kind of production and operation mode in which enterprises maintain harmony and compatibility with the environment. This paper constructs a competition model for the recycling of reverse supply chain considering the behavioral factors of recyclers. In accordance with the definition of the fixed point, we calculate the four equilibrium points of the system and also analyze the local and global stability of the system. Different from former researches, this paper emphasizes on the study of the impact on the long-term operation and profit of the system by those behavioral factors. The study shows that: those behavioral factors of the enterprise, like price adjustment speed, the fairness concern coefficient, and the trade-off coefficient of market share, have significant effects on the size of the stability region. Through some simulation methods like the system’s price bifurcation diagram, maximum Lyapunov exponent, price power spectrum and so on, the characteristics of the system with its chaotic dynamics will be illustrated in this paper. The paper also focuses on the study of the impacts on the system’s profits by heterogeneous behavioral factors. It is furthermore found that once some drastic pricing strategies are being adopted, both the profits of any party and the operating efficiency of the entire system will be damaged.

Cooperate or compete? A strategic analysis of formal and informal electric vehicle battery recyclers under government intervention

ABSTRACT We propose a dual-channel reverse supply chain consisting of a formal and an informal electric vehicle battery recycler under government intervention with a subsidy-and-penalty policy. By comparing and analyzing the equilibrium results, profits, and environmental impacts, we discuss the two members’ competition and cooperation strategies under government intervention. Analytical results show that government subsidy to the formal recycler (penalty to the informal recycler) increases (decreases) the two members’ recycling prices at differed rates. Government intervention increases (reduces) the recycling quantity in the formal (informal) recycling channel. The two members can reach a consensus on cooperation only if the subsidy and penalty are set at sufficiently high levels. In this case, the government should push them up as high as its budget allows for environmental benefit.

Fast Fashion, Charities, and the Circular Economy: Challenges for Operations Management

Textile waste is one of the most pollutant items globally, being strongly affected by fast fashion (FF) products. Public pressure has made many FF firms voluntarily collect a small fraction of their preowned items and export them to developing countries for reuse. However, some developing countries are launching import bans on second‐hand clothes. In addition, FF firms may soon be forced by extended producer responsibility legislation to collect more preowned items for reuse and recycling. To date, they do not have sufficient capacity to deal with this. Charities have been the key collectors and recyclers of unwanted clothes. Therefore, charities could help FF firms increase their capacity in this reverse supply chain (SC). However, we hardly witness such a collaboration for two main reasons: (i) charities prefer to sell high‐quality preowned items in the primary market to generate the highest possible revenue and FF firms may fear cannibalization, (ii) many charities believe that FF firms generate quantities of low‐quality items that require collection and sorting while being difficult to sell in the primary market. Charities also face competition from many small for‐profit organizations selling FF preowned items. While charities have the support of volunteers, they tend to be less efficient. This work urges Operations Management (OM) researchers to suggest innovative business models to help (i) FF firms and charities collaborate to solve the abovementioned issues, and (ii) charities to improve their traditional practices for competitiveness. This study is primarily a position paper highlighting some challenges and introducing interesting research problems. Although the paper is not a research paper, it follows a qualitative research method to collect and analyze the required supporting documents to justify arguments and statements. We collected primary and secondary data from the textile reverse SC members to familiarize the OM community with this context. The current changes in the textile reverse SC offer many great opportunities for impactful OM research.

Building a data‐driven circular supply chain hierarchical structure: Resource recovery implementation drives circular business strategy

AbstractThe circular supply chain has recently received more attention as a relevant solution to effectively tackle environmental issues while simultaneously achieving resource recovery and circular business strategy benefits. This study builds a hierarchical circular supply chain structure from big data including qualitative and quantitative information. This study uses data‐driven analysis to clarify circular supply chain trends and opportunities in practice. A valid hierarchical circular supply chain structure is composed of a big dataset. However, the attributes of the hierarchical circular supply chain structure must be explored to identify the opportunities and challenges of the circular supply chain. A combination of data‐driven content and cluster analysis, including the fuzzy Delphi method, fuzzy decision‐making trials, evaluation laboratories, and the entropy weight method, is utilized to address this gap. The study analyzes a set of five attributes from the literature, and 23 criteria are validated. The results show that resource recovery implementation, Industry 4.0 and digitalization, and reverse supply chain practice pertain to the causal group, while circular business strategy and life cycle sustainability assessment are included in the effect group. The conclusive criteria comprise material efficiency, waste‐to‐energy, machine learning, e‐waste, plastic recycling, and artificial intelligence.

When reverse supply chain makes financial sense: a study of factors affecting profitability in reverse supply chains

ABSTRACT In recent decades, an increasing number of manufacturers have implemented a reverse supply chain (RSC) that takes back and recovers products, components, or packaging, thereby supporting the ideas of the circular economy. The literature has shown that the profitability of RSCs varies in the sense that some manufacturers profit from this while others do not. The causes of this variance, however, remain unclear. To add to the knowledge on this topic, this paper investigates the factors that influence RSCs’ financial performance. This is done through three case studies of RSCs at equipment manufacturers, focusing on the end-product, component, and packaging level, respectively. The findings show that the RSC initiatives were rather profitable at all three product levels. On the other hand, RSC profitability had only a slight relationship to reverse logistics and RSC design. By demonstrating the importance of factors other than reverse logistics, the present study suggests that future research should apply a broader focus when investigating RSCs’ impact on overall financial performance. By identifying a set of factors influencing profitability at the end-product, component, and packaging levels, the present study advances the understanding of RSC profitability and provides a basis for more holistic RSC research.

The potentials of combining Blockchain technology and Internet of Things for digital reverse supply chain: A case study

Asbestos has been considered as a hazardous waste in France since 1997 and it is neither recyclable nor recoverable. Hence, its storage and processing have a major impact on both human health and environment. In addition, its treatment is subject to very strict environmental regulations. Hence, to minimize the environmental regulations impact, the treatment of asbestos requires tools and new information technology (IT) enabling real-time information sharing with all reverse supply chain (RSC) actors. A successful integration of new IT such as Blockchain technology and Internet of Things (IoT) can lead to several advantages in order to help asbestos waste management. This study aims at integrating and combining Blockchain and IoT to digitize RSC for asbestos waste treatment. First, we investigate the roles and impacts of Blockchain and IoT on forward and reverse supply chain performances. Second, we propose two new conceptual models for both open and close loop digital RSC. Finally, to demonstrate the feasibility and effectiveness of integration and combination of these digital technologies, we propose a case study for asbestos waste management. The results show that the combination of Blockchain and IoT can be implemented to provide robust digital RSC.

A Predictive Maintenance System for Reverse Supply Chain Operations

Background: Reverse supply chains of machinery and equipment face significant challenges, and overcoming them is critical for effective customer service and sustainable operation. Maintenance and repair services, strongly associated with the reverse movement of equipment, are among the most demanding reverse supply chain operations. Equipment is scattered in various locations, and multiple suppliers are involved in its maintenance, making it challenging to manage the related reverse supply chain operations. Effective maintenance is essential for businesses-owners of the equipment, as reducing costs while improving service quality helps them gain a competitive advantage. Methods: To enhance reverse supply chain operations related to equipment maintenance, this paper presents the operational framework, the methodological approach, and the architecture for developing a system that covers the needs for predictive maintenance in the service supply chain. It is based on Industry 4.0 technologies, such as the Internet of things, machine learning, and cloud computing. Results: As a result of the successful implementation of the system, effective equipment maintenance and service supply chain management is achieved supporting the reverse supply chain. Conclusions: This will eventually lead to fewer good-conditioned spare part replacements, just in time replacements, extended equipment life cycles, and fewer unnecessary disposals.