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Article
Publication date: 25 January 2011

Adrian E. Coronado Mondragon, Chandra Lalwani and Christian E. Coronado Mondragon

In a growing number of competitive sectors with closedloop supply chains, the reverse component has become an inherent part of the business, not to mention a core competence;…

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Abstract

Purpose

In a growing number of competitive sectors with closedloop supply chains, the reverse component has become an inherent part of the business, not to mention a core competence; hence the need to have performance measures that can be used to provide an accurate diagnosis of the state of the supply chain by addressing both its forward and its reverse components. It is also important to identify the level of existing integration between parties, as this has been associated with supply chain performance. This paper seeks to address this issue.

Design/methodology/approach

Elements gathered from the literature reviewed are used to present a set of measures that can be applied for auditing purposes in: the forward supply chain; product returns and reverse logistics; flows of materials and information and integration between supply chain tiers. To illustrate the use of the proposed set of measures for auditing purposes a case study involving a major European mobile phone network operator was analysed using the operator's own brand of handsets characterised for having a closedloop supply chain.

Findings

The proposed set of measures for auditing purposes provide an overall picture of the performance of a closedloop supply chain by revealing high levels of stock for the products analysed, consequence of the difficulty to generate accurate forecasts and the accumulation of high quantities of product prior to launch. Also the methodology presented in this paper identifies links between product returns (faulty and non‐faulty) to operations in the forward component of the supply chain (design, sourcing, manufacturing and forecasting) and also indicates how performance is affected because of integration.

Research limitations/implications

The proposed set of measures for auditing purposes is relevant to closedloop supply chains which are related to products with short life cycles and during their lifetime can experience faulty and non‐faulty returns. The scope of the study presented may look limited; however, the application of the performance measures presented in this research can become a fundamental component of larger audit exercises. Further research should be carried out with supply chains on products with lifetime cycles that span long periods of time.

Practical implications

For industry sectors with closedloop supply chains, the availability of a set of measures that address the forward and reverse components plus integration can provide a detailed picture of the performance of value streams over traditional approaches to measurement that focus on only one component of the supply chain. The set of measures has the potential to be used to achieve better customer service and reduction in costs involving shipping, warehousing, labour and call centres.

Originality/value

The contribution of this research on closedloop supply chains is a methodology that defines performance measures for auditing purposes of the forward and reverse components of supply chains and assists in assessing the importance of integration between different tiers of supply chains.

Details

Supply Chain Management: An International Journal, vol. 16 no. 1
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 14 August 2017

Surya Prakash, Gunjan Soni and Ajay Pal Singh Rathore

The purpose of this paper is to assist a manufacturing firm in designing the closed-loop supply chain network under risks that are affecting its supply quality and logistics…

Abstract

Purpose

The purpose of this paper is to assist a manufacturing firm in designing the closed-loop supply chain network under risks that are affecting its supply quality and logistics operations. The modeling approach adopted aims at the embedding supply chain risks in a closed-loop supply chain (CLSC) network design process and suggests optimal supply chain configuration and risk mitigation strategies.

Design/methodology/approach

The method proposes a closed-loop supply chain network and identifies the network parameter and variables required for closing the loop. Mixed-integer-linear-programming-based mathematical modeling approach is used to formulate the research problem. The solutions and test results are obtained from CPLEX solver.

Findings

The outcomes of the proposed model were demonstrated through a case study conducted in an Indian hospital furniture manufacturing firm. The modern supply chain is mapped to make it closed loop, and potential risks in its supply chain are identified. The supply chain network of the firm is redesigned through embedding risk in the modeling process. It was found that companies can be in great profit if they follow closed-loop practices and simultaneously keep a check on risks as well. The cost of making the supply chain risk averse was found to be insignificant.

Practical implications

Although the study was conducted in a practical case situation, the obtained results are not indiscriminate to the other circumstances. However, the approach followed and proposed methodology can be applied to many industries once a firm decides to redesign its supply chain for closing its loop or model under risks.

Originality/value

By using the identified CLSC parameters and applying the proposed network design methodology, a firm can design/redesign their supply chain network to counter the risk and accordingly come up with planned mitigation strategies to achieve a certain degree of robustness.

Book part
Publication date: 11 September 2020

Murtadha Aldoukhi and Surendra M. Gupta

This chapter proposes a multiobjective model to design a Closed Loop Supply Chain (CLSC) network. The first objective is to minimize the total cost of the network, while the…

Abstract

This chapter proposes a multiobjective model to design a Closed Loop Supply Chain (CLSC) network. The first objective is to minimize the total cost of the network, while the second objective is to minimize the carbon emission resulting from production, transportation, and disposal processes using carbon cap and carbon tax regularity policies. In the third objective, we maximize the service level of retailers by using maximum covering location as a measure of service level. To model the proposed problem, a physical programming approach is developed. This work contributes to the literature in designing an optimum CLSC network considering the service level objective and product substitution.

Book part
Publication date: 20 October 2015

Mohammad Shamsuddoha

Contemporary literature reveals that, to date, the poultry livestock sector has not received sufficient research attention. This particular industry suffers from unstructured…

Abstract

Contemporary literature reveals that, to date, the poultry livestock sector has not received sufficient research attention. This particular industry suffers from unstructured supply chain practices, lack of awareness of the implications of the sustainability concept and failure to recycle poultry wastes. The current research thus attempts to develop an integrated supply chain model in the context of poultry industry in Bangladesh. The study considers both sustainability and supply chain issues in order to incorporate them in the poultry supply chain. By placing the forward and reverse supply chains in a single framework, existing problems can be resolved to gain economic, social and environmental benefits, which will be more sustainable than the present practices.

The theoretical underpinning of this research is ‘sustainability’ and the ‘supply chain processes’ in order to examine possible improvements in the poultry production process along with waste management. The research adopts the positivist paradigm and ‘design science’ methods with the support of system dynamics (SD) and the case study methods. Initially, a mental model is developed followed by the causal loop diagram based on in-depth interviews, focus group discussions and observation techniques. The causal model helps to understand the linkages between the associated variables for each issue. Finally, the causal loop diagram is transformed into a stock and flow (quantitative) model, which is a prerequisite for SD-based simulation modelling. A decision support system (DSS) is then developed to analyse the complex decision-making process along the supply chains.

The findings reveal that integration of the supply chain can bring economic, social and environmental sustainability along with a structured production process. It is also observed that the poultry industry can apply the model outcomes in the real-life practices with minor adjustments. This present research has both theoretical and practical implications. The proposed model’s unique characteristics in mitigating the existing problems are supported by the sustainability and supply chain theories. As for practical implications, the poultry industry in Bangladesh can follow the proposed supply chain structure (as par the research model) and test various policies via simulation prior to its application. Positive outcomes of the simulation study may provide enough confidence to implement the desired changes within the industry and their supply chain networks.

Details

Sustaining Competitive Advantage Via Business Intelligence, Knowledge Management, and System Dynamics
Type: Book
ISBN: 978-1-78560-707-3

Keywords

Article
Publication date: 6 December 2021

Saman Esmaeilian, Dariush Mohamadi, Majid Esmaelian and Mostafa Ebrahimpour

This paper aims to minimize the total carbon emissions and costs and also maximize the total social benefits.

Abstract

Purpose

This paper aims to minimize the total carbon emissions and costs and also maximize the total social benefits.

Design/methodology/approach

The present study develops a mathematical model for a closed-loop supply chain network of perishable products so that considers the vital aspects of sustainability across the life cycle of the supply chain network. To evaluate carbon emissions, two different regulating policies are studied.

Findings

According to the obtained results, increasing the lifetime of the perishable products improves the incorporated objective function (IOF) in both the carbon cap-and-trade model and the model with a strict cap on carbon emission while the solving time increases in both models. Moreover, the computational efficiency of the carbon cap-and-trade model is higher than that of the model with a strict cap, but its value of the IOF is worse. Results indicate that efficient policies for carbon management will support planners to achieve sustainability in a cost-effectively manner.

Originality/value

This research proposes a mathematical model for the sustainable closed-loop supply chain of perishable products that applies the significant aspects of sustainability across the life cycle of the supply chain network. Regional economic value, regional development, unemployment rate and the number of job opportunities created in the regions are considered as the social dimension.

Article
Publication date: 27 July 2021

Prem Chhetri, Mahsa Javan Nikkhah, Hamed Soleimani, Shahrooz Shahparvari and Ashkan Shamlou

This paper designs an optimal closed-loop supply chain network with an integrated forward and reverse logistics to examine the possibility of remanufacturing end-of-life (EoL…

Abstract

Purpose

This paper designs an optimal closed-loop supply chain network with an integrated forward and reverse logistics to examine the possibility of remanufacturing end-of-life (EoL) ships.

Design/methodology/approach

Explanatory variables are used to estimate the number of EoL ships available in a closed-loop supply chain network. The estimated number of EoL ships is used as an input in the model and then it is solved by a mixed-integer linear programming (MILP) model of the closed-loop supply chain network to minimise the total logistic costs. A discounted payback period formula is developed to calculate the length of time to recoup an investment based on the investment's discounted cash flows. Existing ship wrecking industry clusters in the Western region of India are used as the case study to apply the proposed model.

Findings

The MILP model has optimised the total logistics costs of the closed-loop supply network and ascertained the optimal number and location of remanufacturing for building EoL ships. The capital and variable costs required for establishing and operating remanufacturing centres are computed. To remanufacture 30 ships a year, the discounted payback period of this project is estimated to be less than two years.

Practical implications

Ship manufacturing businesses are yet to re-manufacture EoL ships, given high upfront capital expenditure and operational challenges. This study provides management insights into the costs and benefits of EoL ship remanufacturing; thus, informing the decision-makers to make strategic operational decisions.

Originality/value

The design of an optimal close loop supply chain network coupled with a Bayesian network approach and discounted payback period formula for the collection and remanufacturing of EoL ships provides a new integrated perspective to ship manufacturing.

Details

The International Journal of Logistics Management, vol. 33 no. 2
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 13 March 2009

C. Clifford Defee, Terry Esper and Diane Mollenkopf

The paper's aim is to develop a closedloop supply chain orientation as a strategic alternative available to supply chain organizations seeking competitive advantage in a setting…

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Abstract

Purpose

The paper's aim is to develop a closedloop supply chain orientation as a strategic alternative available to supply chain organizations seeking competitive advantage in a setting that puts a premium on socially responsible decisions.

Design/methodology/approach

The literature describing the concepts of supply chain orientation and supply chain leadership is used to develop a framework for achieving a competitive advantage.

Findings

Creating a closedloop supply chain orientation may be facilitated when the supply chain leader demonstrates a transformational leadership style, and when socially important environmental issues are present.

Research limitations/implications

The paper presents a synthesis of previously unconnected concepts in a conceptual framework that sets a stage for future research in this area.

Practical implications

The paper highlights the strategic importance of developing a closedloop supply chain orientation in the presence of environmental factors, and a supply chain leadership style that may enhance the transformation to such an orientation.

Originality/value

The paper extends the strategic concept of supply chain orientation to include forward and reverse flows in a holistic, closedloop view of the supply chain.

Details

Supply Chain Management: An International Journal, vol. 14 no. 2
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 21 July 2020

Jaber Valizadeh, Ehsan Sadeh, Zainolabedin Amini Sabegh and Ashkan Hafezalkotob

In this study, the authors consider the key decisions in the design of the green closed-loop supply chain (CSLC) network. These decisions include considering the optimal location…

Abstract

Purpose

In this study, the authors consider the key decisions in the design of the green closed-loop supply chain (CSLC) network. These decisions include considering the optimal location of suppliers, production facilities, distribution, customers, recycling centers and disposal of non-recyclable goods. In the proposed model, the level of technology used in recycling and production centers is taken into account. Moreover, in this paper is the environmental impacts of production and distribution of products based on the eco-indicator 99 are considered.

Design/methodology/approach

In this study, the author consider the key decisions in the design of the green CLSC network. These decisions include considering the optimal location of suppliers, production facilities, distribution, customers, recycling centers and disposal of non-recyclable goods. In the proposed model, the level of technology used in recycling and production centers is taken into account. Moreover, the environmental impacts of production and distribution of products based on the eco-indicator 99 are considered.

Findings

The results indicate that the results obtained from the colonial competition algorithm have higher quality than the genetic algorithm. This quality of results includes relative percentage deviation and computational time of the algorithm and it is shown that the computational time of the colonial competition algorithm is significantly lower than the computational time of the genetic algorithm. Furthermore, the limit test and sensitivity analysis results show that the proposed model has sufficient accuracy.

Originality/value

Solid modeling of the green supply chain of the closed loop using the solid optimized method by Bertsimas and Sim. Development of models that considered environmental impacts to the closed loop supply chain. Considering the impact of the technology type in the manufacture of products and the recycling of waste that will reduce emissions of environmental pollutants. Another innovation of the model is the multi-cycle modeling of the closed loop of supply chain by considering the uncertainty and the fixed and variable cost of transport.

Open Access
Article
Publication date: 31 December 2007

Guojun Ji

Complaint service management, aimed at improving customer satisfaction, provides important content for incorporation into studying a closed-loop supply chain. An analysis of the…

Abstract

Complaint service management, aimed at improving customer satisfaction, provides important content for incorporation into studying a closed-loop supply chain. An analysis of the relationship between two provides the basis for probing the role of complaint management (CM) in the closed-loop supply chain to help it perform more efficiently and effectively through the application of advanced technologies. This paper considers how CM can be computed combining computer communication and information technologies. This computing process involves collection, evaluation and disposal. Using computer telephone integration technology, an integrated multi-channel system is designed; complaint and production evaluated through an intelligent decision support system; and CM processing system established to implement corresponding disposal which reflects the utility of CM. This research on the process of incorporating CM into our studies has significance for computing business service in the future. Based on exergoeconomics theory, the closed-loop supply chain is discussed, and the metric about “system negative environment effect” is introduced to system performance in terms of energy expenditures; a case study illustrates the efficacy of the process

Details

Journal of International Logistics and Trade, vol. 5 no. 2
Type: Research Article
ISSN: 1738-2122

Keywords

Article
Publication date: 7 November 2008

Joakim Wikner and Ou Tang

The concept of the customer order decoupling point (CODP) has been used in many different contexts as an important structural concept for the traditional forward supply chain. The…

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Abstract

Purpose

The concept of the customer order decoupling point (CODP) has been used in many different contexts as an important structural concept for the traditional forward supply chain. The CODP is rarely explicitly applied in reverse supply chain management and the purpose of this paper is to show that the CODP can be an important corner stone of a framework for analysis of the closedloop supply chain containing both forward and reverse material flows.

Design/methodology/approach

Conceptual similarities are identified using analogies between forward and reverse supply chains. First, the concepts are discussed in their original context of forward flows and thereafter the concepts are applied on reverse flows. Finally, a holistic closedloop model is established.

Findings

The conventional CODP framework for forward flow supply chains can be extended to cover also reverse material flows and therefore providing a foundation for a more comprehensive discussion of closedloop supply chains useful in both education, research, and industrial applications. Using the suggested extended framework it is possible to identify nine fundamental supply chain configurations.

Practical implications

Differentiating between demand driven and forecast driven activities plays a critical role in practical supply chain management and this paper highlights that this approach also can be applied to closedloop supply chains and therefore extending the reach of the toolbox previously developed for the forward supply chain.

Originality/value

The concept CODP has not previously been comprehensively treated for the closedloop supply chain and this paper provides a foundation for establishing a strategic structural framework for discussing issues such as lean vs agile and balancing efficiency and responsiveness in a more comprehensive context involving also reverse material flows.

Details

The International Journal of Logistics Management, vol. 19 no. 3
Type: Research Article
ISSN: 0957-4093

Keywords

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