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Design of Closed Loop Supply Chains

Author

Listed:
  • Krikke, H.R.
  • Bloemhof-Ruwaard, J.M.
  • Van Wassenhove, L.N.

Abstract

Increased concern for the environment has lead to new techniques to design products and supply chains that are both economically and ecologically feasible. This paper deals with the product - and corresponding supply chain design for a refrigerator. Literature study shows that there are many models to support product design and logistics separately, but not in an integrated way. In our research we develop quantitative modelling to support an optimal design structure of a product, i.e. modularity, repairability, recyclability, as well as the optimal locations and goods flows allocation in the logistics system. Environmental impacts are measured by energy and waste. Economic costs are modelled as linear functions of volumes with a fixed set-up component for facilities. We apply this model using real life R&D data of a Japanese consumer electronics company. The model is run for different scenarios using different parameter settings such as centralised versus decentralised logistics, alternative product designs, varying return quality and quantity, and potential environmental legislation based on producer responsibility.

Suggested Citation

  • Krikke, H.R. & Bloemhof-Ruwaard, J.M. & Van Wassenhove, L.N., 2001. "Design of Closed Loop Supply Chains," ERIM Report Series Research in Management ERS-2001-45-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
  • Handle: RePEc:ems:eureri:108
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    File URL: https://repub.eur.nl/pub/108/erimrs20010809124120.pdf
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    References listed on IDEAS

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    1. Caruso, C. & Colorni, A. & Paruccini, M., 1993. "The regional urban solid waste management system: A modelling approach," European Journal of Operational Research, Elsevier, vol. 70(1), pages 16-30, October.
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    4. Barros, A. I. & Dekker, R. & Scholten, V., 1998. "A two-level network for recycling sand: A case study," European Journal of Operational Research, Elsevier, vol. 110(2), pages 199-214, October.
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    Citations

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    Cited by:

    1. Young-woo Kim & Tai-Woo Chang & Jinwoo Park, 2017. "Gen2 RFID-Based System Framework for Resource Circulation in Closed-Loop Supply Chains," Sustainability, MDPI, vol. 9(11), pages 1-17, October.
    2. Abdelkader Sbihi & Richard Eglese, 2010. "Combinatorial optimization and Green Logistics," Annals of Operations Research, Springer, vol. 175(1), pages 159-175, March.
    3. Zikopoulos, Christos & Tagaras, George, 2015. "Reverse supply chains: Effects of collection network and returns classification on profitability," European Journal of Operational Research, Elsevier, vol. 246(2), pages 435-449.
    4. Diabat, Ali & Kannan, Devika & Kaliyan, Mathiyazhagan & Svetinovic, Davor, 2013. "An optimization model for product returns using genetic algorithms and artificial immune system," Resources, Conservation & Recycling, Elsevier, vol. 74(C), pages 156-169.
    5. Abbas Al-Refaie & Yasmeen Jarrar & Natalija Lepkova, 2021. "Sustainable Design of a Multi-Echelon Closed Loop Supply Chain under Uncertainty for Durable Products," Sustainability, MDPI, vol. 13(19), pages 1-34, October.
    6. Zikopoulos, Christos & Tagaras, George, 2007. "Impact of uncertainty in the quality of returns on the profitability of a single-period refurbishing operation," European Journal of Operational Research, Elsevier, vol. 182(1), pages 205-225, October.
    7. Kusumastuti, Ratih Dyah & Piplani, Rajesh & Hian Lim, Geok, 2008. "Redesigning closed-loop service network at a computer manufacturer: A case study," International Journal of Production Economics, Elsevier, vol. 111(2), pages 244-260, February.
    8. Agrawal, Saurabh & Singh, Rajesh K. & Murtaza, Qasim, 2015. "A literature review and perspectives in reverse logistics," Resources, Conservation & Recycling, Elsevier, vol. 97(C), pages 76-92.

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    More about this item

    Keywords

    facility location; network design; product design; reverse logistics; supply chain management;
    All these keywords.

    JEL classification:

    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics

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