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Profit Analysis and Supply Chain Planning Model for Closed-Loop Supply Chain in Fashion Industry

Author

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  • Jisoo Oh

    (Department of Information and Industrial Engineering, Yonsei University, 50 Yonsei-ro, Seoul 120-749, Korea)

  • Bongju Jeong

    (Department of Information and Industrial Engineering, Yonsei University, 50 Yonsei-ro, Seoul 120-749, Korea)

Abstract

In recent decades, due to market growth and use of synthetic fiber, the fashion industry faces a rapid increase of CO 2 emission throughout the production cycle and raises environmental issues in recovery processing. This study proposes a closed-loop supply chain (CLSC) structure in fashion industry and develops its planning model as multi-objective mixed integer linear programming to find an optimal trade-off between CLSC profit and CO 2 emission. The planning model is associated with the profit analysis of each member in CLSC to find the optimal price of products on CLSC network. The model determines optimal production, transportation, and inventory quantities on CLSC network. The proposed models are validated using numerical experiments and sensitivity analyses, and from the results some managerial insights are addressed.

Suggested Citation

  • Jisoo Oh & Bongju Jeong, 2014. "Profit Analysis and Supply Chain Planning Model for Closed-Loop Supply Chain in Fashion Industry," Sustainability, MDPI, vol. 6(12), pages 1-30, December.
    • Handle: RePEc:gam:jsusta:v:6:y:2014:i:12:p:9027-9056:d:43258
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    References listed on IDEAS

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    Cited by:

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    5. Manoj Kumar Paras & Daniel Ekwall & Rudrajeet Pal & Antonela Curteza & Yan Chen & Lichuan Wang, 2018. "An Exploratory Study of Swedish Charities to Develop a Model for the Reuse-Based Clothing Value Chain," Sustainability, MDPI, vol. 10(4), pages 1-19, April.
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