IDEAS home Printed from https://ideas.repec.org/a/bla/bstrat/v33y2024i8p7972-7989.html
   My bibliography  Save this article

Developing an incentive‐based model for efficient product recovery and reverse logistics

Author

Listed:
  • Deepak Gautam
  • Nomesh Bolia

Abstract

This study presents an inventive model aligning with sustainable development goals (SDGs) 11, 12, and 9. SDG 11 emphasizes sustainable urban aspects, SDG 12 centers on responsible consumption, and SDG 9 highlights resilient infrastructure. Focused on enhancing operational profits, the model integrates a robust reverse logistics network and policy framework to ensure safe disposal and environmental preservation. Employing the CPLEX solver software, we evaluated various methodologies, including proximity‐based allocation, set covering problems, p‐median allocation, and capacity‐relaxed models, to maximize profitability and efficiency in battery return systems. Our findings underscored the limitations of conventional proximity‐based methods, emphasizing the necessity of advanced optimization. Scenario 3, utilizing the p‐median problem, emerged as the most profitable, optimizing customer allocation and reducing distance‐related costs. Additionally, our sensitivity analysis highlighted the collection rate parameter's pivotal role in influencing customer behavior and overall system profitability. The study also emphasizes the significance of accessible collection centers, revealing disparities in accessibility across customer zones. These findings call for nuanced analyses to ensure equitable access. Implications include advocating for strategic policies to enhance collection rates, optimize center accessibility, and promote responsible disposal, benefiting policymakers, industry professionals, and environmental stakeholders. Ultimately, this research contributes to sustainable practices, fostering eco‐conscious societies, and accelerating progress toward SDGs.

Suggested Citation

  • Deepak Gautam & Nomesh Bolia, 2024. "Developing an incentive‐based model for efficient product recovery and reverse logistics," Business Strategy and the Environment, Wiley Blackwell, vol. 33(8), pages 7972-7989, December.
  • Handle: RePEc:bla:bstrat:v:33:y:2024:i:8:p:7972-7989
    DOI: 10.1002/bse.3906
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/bse.3906
    Download Restriction: no

    File URL: https://libkey.io/10.1002/bse.3906?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ala Abdulsalam Alarood & Adamu Abubakar & Abdulrahman Alzahrani & Faisal S. Alsubaei, 2023. "Electronic Waste Collection Incentivization Scheme Based on the Blockchain," Sustainability, MDPI, vol. 15(13), pages 1-29, June.
    2. Danni Zhang & Regina Frei & Gary Wills & Enrico Gerding & Steffen Bayer & Prince Kwame Senyo, 2023. "Strategies and practices to reduce the ecological impact of product returns: An environmental sustainability framework for multichannel retail," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4636-4661, November.
    3. Aras, Necati & Aksen, Deniz, 2008. "Locating collection centers for distance- and incentive-dependent returns," International Journal of Production Economics, Elsevier, vol. 111(2), pages 316-333, February.
    4. Jeffrey D. Sachs & Guido Schmidt-Traub & Mariana Mazzucato & Dirk Messner & Nebojsa Nakicenovic & Johan Rockström, 2019. "Six Transformations to achieve the Sustainable Development Goals," Nature Sustainability, Nature, vol. 2(9), pages 805-814, September.
    5. Aras, Necati & Aksen, Deniz & Gönül Tanugur, Ayse, 2008. "Locating collection centers for incentive-dependent returns under a pick-up policy with capacitated vehicles," European Journal of Operational Research, Elsevier, vol. 191(3), pages 1223-1240, December.
    6. Aksen, Deniz & Aras, Necati & Karaarslan, Ayse Gönül, 2009. "Design and analysis of government subsidized collection systems for incentive-dependent returns," International Journal of Production Economics, Elsevier, vol. 119(2), pages 308-327, June.
    7. Hao Hao & Wenxian Xu & Fangfang Wei & Chuanliang Wu & Zhaoran Xu, 2022. "Reward–Penalty vs. Deposit–Refund: Government Incentive Mechanisms for EV Battery Recycling," Energies, MDPI, vol. 15(19), pages 1-18, September.
    8. Sahoo, Debajani & Harichandan, Sidhartha & Kar, Sanjay Kumar & S, Sreejesh, 2022. "An empirical study on consumer motives and attitude towards adoption of electric vehicles in India: Policy implications for stakeholders," Energy Policy, Elsevier, vol. 165(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fontecha, John E. & Nikolaev, Alexander & Walteros, Jose L. & Zhu, Zhenduo, 2022. "Scientists wanted? A literature review on incentive programs that promote pro-environmental consumer behavior: Energy, waste, and water," Socio-Economic Planning Sciences, Elsevier, vol. 82(PA).
    2. Bagheri Hosseini, Mozhde & Dehghanian, Farzad & Salari, Majid, 2019. "Selective capacitated location-routing problem with incentive-dependent returns in designing used products collection network," European Journal of Operational Research, Elsevier, vol. 272(2), pages 655-673.
    3. Jeihoonian, Mohammad & Kazemi Zanjani, Masoumeh & Gendreau, Michel, 2017. "Closed-loop supply chain network design under uncertain quality status: Case of durable products," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 470-486.
    4. Tsan Sheng Ng & Shuming Wang, 2017. "Recycling systems design using reservation incentive data," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(10), pages 1236-1258, October.
    5. Diabat, Ali & Jebali, Aida, 2021. "Multi-product and multi-period closed loop supply chain network design under take-back legislation," International Journal of Production Economics, Elsevier, vol. 231(C).
    6. Hasan, Md Mahmudul & Faiz, Tasnim Ibn & Modestino, Alicia Sasser & Young, Gary J. & Noor-E-Alam, Md, 2023. "Optimizing return and secure disposal of prescription opioids to reduce the diversion to secondary users and black market," Socio-Economic Planning Sciences, Elsevier, vol. 86(C).
    7. Jeihoonian, Mohammad & Kazemi Zanjani, Masoumeh & Gendreau, Michel, 2016. "Accelerating Benders decomposition for closed-loop supply chain network design: Case of used durable products with different quality levels," European Journal of Operational Research, Elsevier, vol. 251(3), pages 830-845.
    8. Aksen, Deniz & Aras, Necati & Karaarslan, Ayse Gönül, 2009. "Design and analysis of government subsidized collection systems for incentive-dependent returns," International Journal of Production Economics, Elsevier, vol. 119(2), pages 308-327, June.
    9. 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.
    10. Kaya, Onur, 2010. "Incentive and production decisions for remanufacturing operations," European Journal of Operational Research, Elsevier, vol. 201(2), pages 442-453, March.
    11. Wakolbinger, Tina & Toyasaki, Fuminori & Nowak, Thomas & Nagurney, Anna, 2014. "When and for whom would e-waste be a treasure trove? Insights from a network equilibrium model of e-waste flows," International Journal of Production Economics, Elsevier, vol. 154(C), pages 263-273.
    12. Chi Zhang & Zhongchang Sun & Qiang Xing & Jialong Sun & Tianyu Xia & Hao Yu, 2021. "Localizing Indicators of SDG11 for an Integrated Assessment of Urban Sustainability—A Case Study of Hainan Province," Sustainability, MDPI, vol. 13(19), pages 1-14, October.
    13. Sonika Redhu & Pragati Jain, 2024. "Unveiling the nexus between water scarcity and socioeconomic development in the water-scarce countries," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(8), pages 19557-19577, August.
    14. Keeheon Lee, 2021. "A Systematic Review on Social Sustainability of Artificial Intelligence in Product Design," Sustainability, MDPI, vol. 13(5), pages 1-29, March.
    15. Ida Kubiszewski & Kenneth Mulder & Diane Jarvis & Robert Costanza, 2022. "Toward better measurement of sustainable development and wellbeing: A small number of SDG indicators reliably predict life satisfaction," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(1), pages 139-148, February.
    16. Rahman, Shams & Subramanian, Nachiappan, 2012. "Factors for implementing end-of-life computer recycling operations in reverse supply chains," International Journal of Production Economics, Elsevier, vol. 140(1), pages 239-248.
    17. Sabbaghi, Mostafa & Behdad, Sara & Zhuang, Jun, 2016. "Managing consumer behavior toward on-time return of the waste electrical and electronic equipment: A game theoretic approach," International Journal of Production Economics, Elsevier, vol. 182(C), pages 545-563.
    18. Oliver Reader, M. & Eppinga, Maarten B. & de Boer, Hugo J. & Petchey, Owen L. & Santos, Maria J., 2024. "Consistent ecosystem service bundles emerge across global mountain, island and delta systems," Ecosystem Services, Elsevier, vol. 66(C).
    19. Björnemalm, Rickard & Sandström, Christian & Åkesson, Nelly, 2023. "A Public Choice Perspective on Mission-Oriented Innovation Policies and the Behavior of Government Agencies," Ratio Working Papers 366, The Ratio Institute.
    20. Puertas, Rosa & Guaita-Martinez, José M. & Marti, Luisa, 2023. "Analysis of the impact of university policies on society's environmental perception," Socio-Economic Planning Sciences, Elsevier, vol. 88(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:bstrat:v:33:y:2024:i:8:p:7972-7989. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-0836 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.