IDEAS home Printed from https://ideas.repec.org/a/bla/bstrat/v33y2024i8p8211-8232.html
   My bibliography  Save this article

Link between sustainable circular supply chain and Internet of Things technology in electric vehicle battery manufacturing industry: A business strategy optimization for pickup and delivery

Author

Listed:
  • Shahryar Sorooshian
  • Sina Fazel Khiavi
  • Farzane Karimi
  • Hassan Mina

Abstract

Modern industries use advanced technological solutions to efficiently manage waste and increase the sustainability of supply chain (SC) networks. Technologies in SC networks can achieve this by establishing a link between circular economy principles and Industry 4.0. Therefore, in this study, for the first time, a novel bi‐objective mixed‐integer linear programming model is developed to design a sustainable SC network by considering circular economy practices, the Internet of Things (IoT) technology, and the location‐routing problem with a simultaneous pickup‐and‐delivery (P&D) strategy in the electric vehicle (EV) battery industry. The proposed model locates distribution and recycling centers and considers the routing problem with the P&D strategy between the distribution centers and service providers. By applying the augmented epsilon‐constraint method, a balance is established between minimizing total costs and carbon emissions, and a set of Pareto‐optimal solutions is provided. It should be noted that the P&D strategy reduces the total costs and carbon emissions, and the IoT technology provides conditions for designing a secure and traceable network. The performance of the proposed model is evaluated using data from an EV battery module manufacturing company in the Far East. A sensitivity analysis of the parameters related to operational costs, carbon emissions, and demand demonstrated the accuracy of the performance of the proposed model.

Suggested Citation

  • Shahryar Sorooshian & Sina Fazel Khiavi & Farzane Karimi & Hassan Mina, 2024. "Link between sustainable circular supply chain and Internet of Things technology in electric vehicle battery manufacturing industry: A business strategy optimization for pickup and delivery," Business Strategy and the Environment, Wiley Blackwell, vol. 33(8), pages 8211-8232, December.
    • Handle: RePEc:bla:bstrat:v:33:y:2024:i:8:p:8211-8232
    DOI: 10.1002/bse.3905
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/bse.3905
    Download Restriction: no
    File URL: https://libkey.io/10.1002/bse.3905?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. Kevin Nguyen & Mohammadreza Akbari & Huy Truong Quang & Scott McDonald & Thu-Hang Hoang & Teck Lee Yap & Majo George, 2023. "Navigating Environmental Challenges through Supply Chain Quality Management 4.0 in Circular Economy: A Comprehensive Review," Sustainability, MDPI, vol. 15(24), pages 1-26, December.
    2. Carlos Andrés Tavera Romero & Diego F. Castro & Jesús Hamilton Ortiz & Osamah Ibrahim Khalaf & Miguel A. Vargas, 2021. "Synergy between Circular Economy and Industry 4.0: A Literature Review," Sustainability, MDPI, vol. 13(8), pages 1-18, April.
    3. De Lima, Felipe Alexandre & Seuring, Stefan, 2023. "A Delphi study examining risk and uncertainty management in circular supply chains," International Journal of Production Economics, Elsevier, vol. 258(C).
    4. Alvand Sadeghi & Hassan Mina & Niloofar Bahrami, 2020. "A mixed integer linear programming model for designing a green closed-loop supply chain network considering location-routing problem," International Journal of Logistics Systems and Management, Inderscience Enterprises Ltd, vol. 36(2), pages 177-198.
    5. Georgios Lampropoulos & Kerstin Siakas & Theofylaktos Anastasiadis, 2019. "Internet Of Things In The Context Of Industry 4.0: An Overview," International Journal of Entrepreneurial Knowledge, Center for International Scientific Research of VSO and VSPP, vol. 7(1), pages 4-19, June.
    6. Govindan, Kannan & Soleimani, Hamed & Kannan, Devika, 2015. "Reverse logistics and closed-loop supply chain: A comprehensive review to explore the future," European Journal of Operational Research, Elsevier, vol. 240(3), pages 603-626.
    7. R. Canan Savaskan & Shantanu Bhattacharya & Luk N. Van Wassenhove, 2004. "Closed-Loop Supply Chain Models with Product Remanufacturing," Management Science, INFORMS, vol. 50(2), pages 239-252, February.
    8. Emilia Ingemarsdotter & Ella Jamsin & Gerd Kortuem & Ruud Balkenende, 2019. "Circular Strategies Enabled by the Internet of Things—A Framework and Analysis of Current Practice," Sustainability, MDPI, vol. 11(20), pages 1-37, October.
    9. Julia Wolf, 2014. "The Relationship Between Sustainable Supply Chain Management, Stakeholder Pressure and Corporate Sustainability Performance," Journal of Business Ethics, Springer, vol. 119(3), pages 317-328, February.
    10. Govindan, Kannan & Salehian, Farhad & Kian, Hadi & Hosseini, Seyed Teimoor & Mina, Hassan, 2023. "A location-inventory-routing problem to design a circular closed-loop supply chain network with carbon tax policy for achieving circular economy: An augmented epsilon-constraint approach," International Journal of Production Economics, Elsevier, vol. 257(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. Assarzadegan, Parisa & Rasti-Barzoki, Morteza, 2020. "A game theoretic approach for pricing under a return policy and a money back guarantee in a closed loop supply chain," International Journal of Production Economics, Elsevier, vol. 222(C).
    2. Bo Wang & Ning Wang, 2022. "Decision Models for a Dual-Recycling Channel Reverse Supply Chain with Consumer Strategic Behavior," Sustainability, MDPI, vol. 14(17), pages 1-18, August.
    3. Ramani, Vinay & De Giovanni, Pietro, 2017. "A two-period model of product cannibalization in an atypical Closed-loop Supply Chain with endogenous returns: The case of DellReconnect," European Journal of Operational Research, Elsevier, vol. 262(3), pages 1009-1027.
    4. Kalogerakis, Katharina & Drabe, Viktoria & Paramasivam, Mugundan & Herstatt, Cornelius, 2015. "Closed-Loop Supply Chains for Cradle to Cradle Products," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Kersten, Wolfgang & Blecker, Thorsten & Ringle, Christian M. (ed.), Sustainability in Logistics and Supply Chain Management: New Designs and Strategies. Proceedings of the Hamburg International Conference of Logistics , volume 21, pages 3-34, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    5. Jackson Jinhong Mi & Zongsheng Huang & Kai Wang & Sang-Bing Tsai & Guodong Li & Jiangtao Wang, 2018. "The Presence of a Powerful Retailer on Dynamic Collecting Closed-Loop Supply Chain From a Sustainable Innovation Perspective," Sustainability, MDPI, vol. 10(7), pages 1-17, June.
    6. Jiafu Su & Chi Li & Qingjun Zeng & Jiaquan Yang & Jie Zhang, 2019. "A Green Closed-Loop Supply Chain Coordination Mechanism Based on Third-Party Recycling," Sustainability, MDPI, vol. 11(19), pages 1-14, September.
    7. Wensi Zhang & Jing Xiao & Lingfei Cai, 2020. "Joint Emission Reduction Strategy in Green Supply Chain under Environmental Regulation," Sustainability, MDPI, vol. 12(8), pages 1-24, April.
    8. Yanting Huang & Benrong Zheng & Zongjun Wang, 2023. "Supplier–remanufacturing and manufacturer–remanufacturing in a closed-loop supply chain with remanufacturing cost disruption," Annals of Operations Research, Springer, vol. 324(1), pages 61-92, May.
    9. Vishal V. Agrawal & Atalay Atasu & Luk N. Van Wassenhove, 2019. "OM Forum—New Opportunities for Operations Management Research in Sustainability," Service Science, INFORMS, vol. 21(1), pages 1-12, January.
    10. Wang, Junbin & Zhang, Ting & Fan, Xiaojun, 2020. "Reverse channel design with a dominant retailer and upstream competition in emerging markets: Retailer- or manufacturer- collection?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 137(C).
    11. Maiti, T. & Giri, B.C., 2017. "Two-way product recovery in a closed-loop supply chain with variable markup under price and quality dependent demand," International Journal of Production Economics, Elsevier, vol. 183(PA), pages 259-272.
    12. Wu, Xiaole & Zhou, Yu, 2019. "Buyer-specific versus uniform pricing in a closed-loop supply chain with third-party remanufacturing," European Journal of Operational Research, Elsevier, vol. 273(2), pages 548-560.
    13. Xiaofeng Long & Tong Shu & Shou Chen & Shouyang Wang & Kin Keung Lai & Yan Yang, 2017. "Strategy Analysis of Recycling and Remanufacturing by Remanufacturers in Closed-Loop Supply Chain," Sustainability, MDPI, vol. 9(10), pages 1-29, October.
    14. Zongsheng Huang, 2020. "Stochastic Differential Game in the Closed-Loop Supply Chain with Fairness Concern Retailer," Sustainability, MDPI, vol. 12(8), pages 1-21, April.
    15. Tong Shu & Qian Liu & Shou Chen & Shouyang Wang & Kin Keung Lai, 2018. "Pricing Decisions of CSR Closed-Loop Supply Chains with Carbon Emission Constraints," Sustainability, MDPI, vol. 10(12), pages 1-25, November.
    16. Xin Zhang & Gang Zhao & Yingxiu Qi & Botang Li, 2019. "A Robust Fuzzy Optimization Model for Closed-Loop Supply Chain Networks Considering Sustainability," Sustainability, MDPI, vol. 11(20), pages 1-24, October.
    17. Emad Sane Zerang & Ata Allah Taleizadeh & Jafar Razmi, 2018. "Analytical comparisons in a three-echelon closed-loop supply chain with price and marketing effort-dependent demand: game theory approaches," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 20(1), pages 451-478, February.
    18. Cheng-Han Wu, 2021. "Production-quality policy for a make-from-stock remanufacturing system," Flexible Services and Manufacturing Journal, Springer, vol. 33(2), pages 425-456, June.
    19. Maria Beranek & Udo Buscher, 2024. "Pricing decisions in a two-period closed-loop supply chain game under asymmetric information and uncertainty," Flexible Services and Manufacturing Journal, Springer, vol. 36(4), pages 1450-1502, December.
    20. Qiao, Haike & Su, Qin, 2021. "Distribution channel and licensing strategy choice considering consumer online reviews in a closed-loop supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 151(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:8211-8232. 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.