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Addressing environmental concerns in closed loop supply chain design and planning

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  • Das, Kanchan
  • Rao Posinasetti, Nageswara

Abstract

This research integrates environmental concerns in a closed loop supply chain (SC) model to improve overall SC performance in terms of sustainability and business operational metrics. The model includes modular product design for facilitating faster manufacturing, disassembly, remanufacturing, refurbishing, and repairing using new, reusable and repairable components, and modular subassemblies. The model plans sustainable module formation; production process for components and products, and transportation and distribution routes to obtain optimum business performances and address environmental concerns for harmful emissions and spent energy. The research proposes to collect end-of-life and other customer returned products through retailers by motivating retailers and customers with an incentive scheme. Refurbishing, recovery, and repair works for the components and modules are managed by the SC through a pool of service providers trained by their manufacturing plants for such recovery works. Numerical example illustrates the applicability of the approach and the model.

Suggested Citation

  • Das, Kanchan & Rao Posinasetti, Nageswara, 2015. "Addressing environmental concerns in closed loop supply chain design and planning," International Journal of Production Economics, Elsevier, vol. 163(C), pages 34-47.
    • Handle: RePEc:eee:proeco:v:163:y:2015:i:c:p:34-47
    DOI: 10.1016/j.ijpe.2015.02.012
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    2. Saglam, Ismail, 2023. "Must Pollution Abatement Harm the Supplier in a Multi-Echelon Supply Chain?," MPRA Paper 118834, University Library of Munich, Germany.
    3. He, Yuanjie, 2017. "Supply risk sharing in a closed-loop supply chain," International Journal of Production Economics, Elsevier, vol. 183(PA), pages 39-52.
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    7. Yufei Hu & Lianghua Chen & Yingying Chi & Bowen Song, 2022. "Manufacturer encroachment on a closed‐loop supply chain with design for remanufacturing," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 1941-1959, September.
    8. Abdul Salam Khan & Catalin Iulian Pruncu & Razaullah Khan & Khawar Naeem & Abdul Ghaffar & Pakeeza Ashraf & Shah Room, 2020. "A Trade-off Analysis of Economic and Environmental Aspects of a Disruption Based Closed-Loop Supply Chain Network," Sustainability, MDPI, vol. 12(17), pages 1-28, August.
    9. Ali Pedram & Shahryar Sorooshian & Freselam Mulubrhan & Afshin Abbaspour, 2023. "Incorporating Vehicle-Routing Problems into a Closed-Loop Supply Chain Network Using a Mixed-Integer Linear-Programming Model," Sustainability, MDPI, vol. 15(4), pages 1-24, February.
    10. Wang, Qifei & Hong, Xianpei & Gong, Yeming (Yale) & Chen, Wanying (Amanda), 2020. "Collusion or Not: The optimal choice of competing retailers in a closed-loop supply chain," International Journal of Production Economics, Elsevier, vol. 225(C).
    11. Suzanne, Elodie & Absi, Nabil & Borodin, Valeria, 2020. "Towards circular economy in production planning: Challenges and opportunities," European Journal of Operational Research, Elsevier, vol. 287(1), pages 168-190.
    12. Khor, Kuan Siew & Udin, Zulkifli Mohamed & Ramayah, Thurasamy & Hazen, Benjamin T., 2016. "Reverse logistics in Malaysia: The Contingent role of institutional pressure," International Journal of Production Economics, Elsevier, vol. 175(C), pages 96-108.
    13. Ionela-Corina Chersan & Mirela Paunescu & Elena-Mirela Nichita & Valentin Florentin Dumitru & Cristina Lidia Manea, 2023. "Circular Economy Practices in the Electrical and Electronic Equipment Sector in the European Union," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 25(62), pages 1-80, February.
    14. Nasir, Mohammed Haneef Abdul & Genovese, Andrea & Acquaye, Adolf A. & Koh, S.C.L. & Yamoah, Fred, 2017. "Comparing linear and circular supply chains: A case study from the construction industry," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 443-457.
    15. Waltho, Cynthia & Elhedhli, Samir & Gzara, Fatma, 2019. "Green supply chain network design: A review focused on policy adoption and emission quantification," International Journal of Production Economics, Elsevier, vol. 208(C), pages 305-318.
    16. Manju Saroha & Dixit Garg & Sunil Luthra, 2022. "Analyzing the circular supply chain management performance measurement framework: the modified balanced scorecard technique," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 13(2), pages 951-960, June.
    17. Beatrice Marchi & Simone Zanoni, 2017. "Supply Chain Management for Improved Energy Efficiency: Review and Opportunities," Energies, MDPI, vol. 10(10), pages 1-29, October.
    18. Alessio Ishizaka & Sharfuddin Ahmed Khan & Siamak Kheybari & Syed Imran Zaman, 2023. "Supplier selection in closed loop pharma supply chain: a novel BWM–GAIA framework," Annals of Operations Research, Springer, vol. 324(1), pages 13-36, May.
    19. Saglam, Ismail, 2023. "The Optimal Antitrust Policies for Vertical Price Restraints in a Non-Green Supply Chain," MPRA Paper 117587, University Library of Munich, Germany.
    20. Wang, Wenyuan & Wang, Yue & Mo, Daniel & Tseng, Mitchell M., 2017. "Managing component reuse in remanufacturing under product diffusion dynamics," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 551-560.
    21. Yuxiang Yang & Zuqing Huang & Qiang Patrick Qiang & Gengui Zhou, 2017. "A Mathematical Programming Model with Equilibrium Constraints for Competitive Closed-Loop Supply Chain Network Design," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 34(05), pages 1-31, October.
    22. Jahani, Hamed & Abbasi, Babak & Sheu, Jiuh-Biing & Klibi, Walid, 2024. "Supply chain network design with financial considerations: A comprehensive review," European Journal of Operational Research, Elsevier, vol. 312(3), pages 799-839.
    23. Kadambala, Dinesh K. & Subramanian, Nachiappan & Tiwari, Manoj K. & Abdulrahman, Muhammad & Liu, Chang, 2017. "Closed loop supply chain networks: Designs for energy and time value efficiency," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 382-393.
    24. Cannella, Salvatore & Bruccoleri, Manfredi & Framinan, Jose M., 2016. "Closed-loop supply chains: What reverse logistics factors influence performance?," International Journal of Production Economics, Elsevier, vol. 175(C), pages 35-49.

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