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Article

Manoj Kumar Paras, Antonela Curteza and Geetika Varshneya

Undesired changes in the environment and reduction of natural resources have necessitated the need for environmental protection and resource conservation. Textile and…

Abstract

Purpose

Undesired changes in the environment and reduction of natural resources have necessitated the need for environmental protection and resource conservation. Textile and clothing industry is the second largest (after food) industry. Therefore, there is a need to protect the environment by reducing the use of natural resources. The purpose of this paper is to explore and identify the best reverse value chain alternatives for the clothing industry.

Design/methodology/approach

An exploratory study is undertaken at six organizations working in the area of used clothes. The data were collected with the help of semi-structured interviews and a questionnaire, for the analytical hierarchy process analysis. The information from other sources such documents, websites, and reports was also gathered to strengthen the findings.

Findings

There are different reverse value chain methods to minimize the use of natural resources such as direct reuse, upcycling and downcycling. Incineration and landfill can be considered as the last options. The selection of best reverse value chain method is a multi-criteria value decision-making problem, as this involves complex decision parameters.

Practical implications

The industry practitioners can use the above model and results to make end-of-life decisions.

Originality/value

This paper develops a model on the basis of the analytic hierarchy process to determine the best method to close the loop of the clothing value chain. On the basis of the result and analysis, upcycling emerged to be the best alternative to close the loop of the clothing industry.

Details

Journal of Fashion Marketing and Management: An International Journal, vol. 23 no. 3
Type: Research Article
ISSN: 1361-2026

Keywords

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Article

Uttam Kumar Khedlekar and Priyanka Singh

For smooth running of business affairs, there needs to be a coordination among manufacturer, collector and retailer in forward and reverse supply chain. This paper handles…

Abstract

Purpose

For smooth running of business affairs, there needs to be a coordination among manufacturer, collector and retailer in forward and reverse supply chain. This paper handles the problem of making pricing, collecting and percentage sharing decisions in a closed-loop supply chain. The purpose of this paper is to examine the effect of responsibility sharing percentage on the profits of a manufacturer, a retailer and a collector. The paper further aims to understand the mutual interactions among decision variables and profit functions. It also determines the optimal selling price, optimal time, wholesale price, sharing percentage and optimal return rate in such a manner that the profit function is maximized.

Design/methodology/approach

The authors presented a three-echelon model consisting of a manufacturer, a retailer and a collector in the closed-loop supply chain and optimized the profits of each supply chain member. The authors introduced SRR models for the remanufacturing by providing some percentage of physical and financial support to the collector. Optimization techniques have been applied to obtain optimal solutions. Numerical examples and graphical representations of the optimal solutions are provided to illustrate the model.

Findings

This study stresses on profitable value retrieval from returned products, and it discusses how responsibility sharing can improve profitability and reduce the workload of an individual. In total, three main results are found. First, sharing and coordination among chain members can improve collector’s profit. Second, supply chain performance may also improve over time. Third, the profit of each member of the supply chain increases with an increase in sharing percentage up to a certain limit. So, the manufacturer can share the responsibility of the collector under a fixed limit.

Research limitations/implications

The main limitation of this model is that there is no difference between manufactured and remanufactured products. There are many correlated issues that need to be further investigated. The future study in this direction may include multi-retailer, stochastic demand patterns.

Practical implications

It is directly utilized by supply chain industries in which coordination among chain members is still needed to maximize profits. This information enables the manufacturer to assist the collector financially or physically for the proper management of the three-layer supply chain. The present work will form a guideline to choose the appropriate parameter(s) and mathematical technique(s) in different situations for remanufacturable products.

Social implications

From the management point of view, this study delivers the strongest result to remanufacturing companies and for whom effective and efficient coordination among chain members is vital to the overall performance of the supply chain.

Originality/value

There are very few studies that consider the remanufacturing of used products under a fixed time period. The authors considered selling price-sensitive and time-dependent exponentially declining demand. This model is developed by considering all possible help to a collector from manufacturer to collect used products from consumers. This research complements past research by showing coordination among supply chain members within a fixed time horizon.

Details

Journal of Advances in Management Research, vol. 16 no. 5
Type: Research Article
ISSN: 0972-7981

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Article

Lingcheng Kong, Zhiyang Liu, Yafei Pan, Jiaping Xie and Guang Yang

The online direct selling mode has been widely accepted by enterprises in the O2O era. However, the dual-channel (online/offline, forward/backward) operations of the…

Abstract

Purpose

The online direct selling mode has been widely accepted by enterprises in the O2O era. However, the dual-channel (online/offline, forward/backward) operations of the closed-loop supply chain (CLSC) changed the relationship between manufacturers and retailers, thus resulting in channel conflict. The purpose of this paper is to take a dual-channel operations of CLSC as the research target, where a manufacturer sells a single product through a direct e-channel as well as a conventional retail channel; the retailer are responsible for collecting used products in the reverse supply chain and the manufacturer are responsible for remanufacturing.

Design/methodology/approach

The authors build a benchmark model of dual-channel price and service competition and take the return rate, which is considered to be related to the service level of the retailer, as the function of the service level to extend the model in the reverse SC. The authors then analyze the optimal pricing and service decision under centralization and decentralization, respectively. Finally, with the revenue-sharing factor, wholesale price and recycling price transfer payment coefficient as contract parameters, the paper also designs a revenue-sharing contract led by the manufacturer and explores in what situation the contract could realize the Pareto optimization of all players.

Findings

In the baseline model, the results show that optimal price and service level correlate positively in centralization; however, the relation relies on consumers’ price sensitivity in decentralization. In the extension model, the relationship between price and service level also relies on the relative value of increased service cost and remanufacturing saved cost. When the return rate correlates with the service level, a recycling transfer payment can elevate the service level and thus raise the return rate. Through analyzing the parameters in revenue-sharing contract, a point can be reached where lowering the wholesale price and raising the transfer payment coefficient will promote retailers to share revenue.

Practical implications

Many enterprises establish the dual-channel distribution system both online and offline, which need to understand how to resolve their channel conflict. The conflict is especially strong in CLSC with remanufacturing. The result helps the node enterprises realize the coordination of the dual-channel CLSC.

Originality/value

It takes into account the fact that there are two complementary relationships, such as online selling and offline delivery; used product recycling and remanufacturing. The authors optimize the strategy of product pricing and service level in order to solve channel conflict and double marginalization in the closed-loop dual-channel distribution network.

Details

Industrial Management & Data Systems, vol. 117 no. 8
Type: Research Article
ISSN: 0263-5577

Keywords

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Article

Sameer Kumar, Qui S. Hong and Linae N. Haggerty

Numerous research articles and industry reports are currently available that deal with global sourcing, however, few articles and reports can be specifically found on…

Abstract

Purpose

Numerous research articles and industry reports are currently available that deal with global sourcing, however, few articles and reports can be specifically found on sourcing packaging materials in the consumer packaged food (CPF) industry. The purpose of this paper is to understand and develop the supplier selection process and overall cost modeling that facilitates the selection of a high‐quality global supplier for low‐cost packaging materials used in large quantities for CPF products.

Design/methodology/approach

To gain information relating to packaging material sourcing, a comprehensive literature search was conducted. Additionally, interviews with packaging material sourcing managers and directors were performed at a major global CPF products manufacturer. Knowledge gained from literature, industry interviews and available business data was used to develop a generic strategic outsourcing model and a closed loop business framework for selection of global suppliers of packaging material. This framework utilizes the proposed total cost of ownership model for global sourcing and weighted qualitative criteria matrix demonstrating how it is used in global supplier selection.

Findings

The results of this study show a standardized supplier selection process and the total cost of ownership model for a CPF manufacturer which incorporates the different logistic costs such as tariffs, duties, inventory carrying levels and cost of quality. These two models are then merged into a selection matrix to determine with which supplier to enter into a long‐term supply relationship.

Originality/value

The paper combines both the relevant closed loop supplier selection modeling framework and the total cost of ownership model in the selection of supplier for low‐cost high‐volume CPF materials. It adds rigor regarding cost of ownership and emphasizes the need for a strategic rationale when entering into long‐term global supply relationships between CPF products manufacturers and packaging material suppliers.

Details

Journal of Manufacturing Technology Management, vol. 22 no. 2
Type: Research Article
ISSN: 1741-038X

Keywords

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Article

Z. Bubnicki

The paper is concerned with static plants described by a knowledge representation in the form of relations or logical formulas with unknown parameters. The learning…

Abstract

The paper is concerned with static plants described by a knowledge representation in the form of relations or logical formulas with unknown parameters. The learning algorithms consisting of step‐by‐step knowledge validation and updating have been presented for different versions. The theorems concerning the convergence of the learning processes have been given for the open‐loop and closed‐loop learning decision‐making system. The extension for the case with uncertain observations has been suggested. Simple examples illustrate the presented approach.

Details

Kybernetes, vol. 29 no. 7/8
Type: Research Article
ISSN: 0368-492X

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Article

Simone Sehnem, Diego Vazquez-Brust, Susana Carla Farias Pereira and Lucila M.S. Campos

This paper aims to investigate overlaps, complementarities and divergences between the literature on circular economy (CE) models and related literature in non-linear…

Abstract

Purpose

This paper aims to investigate overlaps, complementarities and divergences between the literature on circular economy (CE) models and related literature in non-linear production models and frameworks, including CE, reverse logistics, closed-loop, industrial symbiosis and industrial ecology.

Design/methodology/approach

A systematic literature review was conducted focussing on the benefits of non-linear modes adoption.

Findings

The results show a high degree of convergence in findings, gaps and weaknesses of these literatures. Negative environmental, economic and operational impacts are understudied. There is a scarcity of studies identifying practices resulting in empirically tested benefits. The business and society case for non-linear production is still largely built upon conceptual studies, modelling and a few case studies. Despite a normative focus, there is very little use of theory, in particular, management theories.

Research limitations/implications

First, the authors use only one, albeit highly recognized database, Scopus. This database may have omitted some relevant research, journals such as the Journal of Cleaner Production and Resources Conservation & Recycling that are more likely to publish such research and also have a more interdisciplinary approach. This is an important gap and interesting result to claim for more interdisciplinary research. Second, the filtering process used and the focus on Association of Business Schools top journals may have also omitted some relevant research, such as a large stream of literature in specialist journals such as Resources Conservation and Recycling and the Journal of Cleaner Production.

Practical implications

There are contradictions, tensions and epistemological ambiguity that needs to be critically addressed. Such tensions may be associated with the knowledge field that gave rise to these different non-linear production approaches. Many of them appeared at the same time, but from different sciences and disciplines with their own perspectives. Then in doing so, they create confusion in the definitions of CE, assumptions underlying modelling and business choices arising from this complexity. This can be minimized through the critical interpretation of knowledge to elucidate epistemological quandaries to improve the understanding of the economic, social and environmental impacts of practices.

Social implications

In some way, this result makes sense, as the authors have limited the search to management, business and accounts journals, especially talking about Operations Management journals. This is an important gap and interesting result to claim for more interdisciplinary research.

Originality/value

In addition to gaps previously described, the authors identified areas of tensions where the literature offers inconclusive – often contradictory – findings requiring further exploration. A better understanding of these tensions is required to understand the impacts of non-linear production and develop policy guidelines for industry and policymakers to scale-up CE.

Details

Supply Chain Management: An International Journal, vol. 24 no. 6
Type: Research Article
ISSN: 1359-8546

Keywords

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Article

Abhijeet Ghadge, Qifan Yang, Nigel Caldwell, Christian König and Manoj Kumar Tiwari

The purpose of this paper is to find a sustainable facility location solution for a closed-loop distribution network in the uncertain environment created by of high levels…

Abstract

Purpose

The purpose of this paper is to find a sustainable facility location solution for a closed-loop distribution network in the uncertain environment created by of high levels of product returns from online retailing coupled with growing pressure to reduce carbon emissions.

Design/methodology/approach

A case study approach attempts to optimize the distribution centre (DC) location decision for single and double hub scenarios. A hybrid approach combining centre of gravity and mixed integer programming is established for the un-capacitated multiple allocation facility location problem. Empirical data from a major national UK retail distributor network is used to validate the model.

Findings

The paper develops a contemporary model that can take into account multiple factors (e.g. operational and transportation costs and supply chain (SC) risks) while improving performance on environmental sustainability.

Practical implications

Based on varying product return rates, SC managers can decide whether to choose a single or a double hub solution to meet their needs. The study recommends a two hub facility location approach to mitigate emergent SC risks and disruptions.

Originality/value

A two-stage hybrid approach outlines a unique technique to generate candidate locations under twenty-first century conditions for new DCs.

Details

International Journal of Retail & Distribution Management, vol. 44 no. 9
Type: Research Article
ISSN: 0959-0552

Keywords

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Article

Zhichao Zhang, Bengang Gong, Juan Tang, Zhi Liu and Xiaoxue Zheng

Under the carbon regulation mechanism, managing operational strategies is a challenging task. Green innovation is introduced into a hybrid system of manufacturing and…

Abstract

Purpose

Under the carbon regulation mechanism, managing operational strategies is a challenging task. Green innovation is introduced into a hybrid system of manufacturing and remanufacturing to handle the carbon emission constraints in a dynamic market environment. This paper aims to investigate the joint dynamic green innovation policy and pricing strategies in a hybrid manufacturing and remanufacturing system.

Design/methodology/approach

This paper first considers a monopolistic manufacturer who offers brand-new products and remanufactured items at the same price to consumers. Subsequently, the authors extend their analyses to distinct pricing strategies for both newly manufactured products and refurnished ones in such a hybrid system. Two different cases are considered: a loose carbon emission constraint and a binding carbon emission constraint. By solving the dynamic optimization problem, the differential game and Pontryagin’s maximum principle are used to obtain the joint green innovation and pricing strategies.

Findings

The retail price first increases then declines over a single period. The green innovation diminishes in the same pricing decision model, while it first increases then declines in a distinct pricing decision model over a single planning horizon. The green innovation investment as well as the retail price are discouraged by an emission cap and recycling fraction. The distinct retail price fluctuates violently, and they are, in descending order of the highest peak price as follows: the newly manufactured product, the same pricing product and the repaired product. Carbon emission caps that are either too high or too low decrease the revenue of the manufacturer. A small emission constraint margin benefits the manufacturer. The recycling policy, as well as other parameters, affects whether the hybrid system attains the carbon emission constraint or not, which suggests that the recycling policy is complementary to the carbon emission constraint mechanism in the hybrid system.

Practical implications

These results offer managerial implications to the hybrid system in terms of green innovation, pricing strategies and recycling policy.

Originality/value

This paper is among the first papers to research the joint dynamic green innovation policy and pricing strategies with/without a carbon emission constraint in a hybrid manufacturing and remanufacturing system with a differential game. Moreover, this paper presents a potential way of investigating other common resource constraints by a differential game in a manufacturing/remanufacturing system or closed loop supply chain.

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Article

Syed Asif Raza

This study research contributes in fulfilling the gap by carrying out a systematic literature review (SLR) of contemporary research studies in closed-loop supply chain…

Abstract

Purpose

This study research contributes in fulfilling the gap by carrying out a systematic literature review (SLR) of contemporary research studies in closed-loop supply chain (CLSC). To the best of the author’s knowledge, an SLR rooted in bibliometric analysis has not been carried focusing on advent developments in CLSC. SLR employs scientific methodologies to select papers from standard databases. The SLR using advanced bibliometric and network analysis enables unveiling the key features of the contemporary literature.

Design/methodology/approach

The author has analyzed over 333 documents published from 2008 and onward. Using the contemporary tools from bibliometric analysis tools, the author presented an exploratory analysis. A network analysis is utilized to visualize literature and create clusters for the cocited research studies, keywords and publication sources. A detailed multivariate analysis of most influential works published based top 100 articles via a cocitation matrix is done. The multivariate analysis used k-means clustering in which optimal number of clusters are estimated. The analysis is further extended by using a factor analysis, which enables determining the most influential clusters in the k-means clustering analysis.

Findings

The SLR using a bibliometric and network analysis enables unveiling the key features of the contemporary literature in CLSC. The author examined published research for influential authors, sources, region, among other key aspects. Network analysis enabled visualizing the clusters of cocited research studies, cowords and publication sources. Cluster analysis of cocited research studies is further explored using k-means clustering. Factor analysis extends findings by identifying most contributing grouping of research areas within CLSC research. Each clustering technique disclosed a unique grouping structure.

Originality/value

CLSC has received considerable attention, and its core areas start with focusing on reverse logistics concepts relating reuse, recycling, remanufacturing, among others. Contemporarily, the studies have enhanced reverse logistics core functionalities interfaced with the other interesting avenues related to CO2 emission reduction, greening and environmental protection, sustainability, product design and governmental policies. Earlier studies have presented a literature review of CLSC; however, these reviews are commonly conducted in the traditional manner where the authors select papers based on their area of expertise, interest and experience. As such these reviews fall short in utilizing the advanced tools from bibliometric analysis.

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Article

Xiaogang Cao, Xianjia Wang and Hui Wen

This paper aims to propose a two-period model, including an original manufacturer, a retailer and a third-party remanufacturer, in which the products manufactured by the…

Abstract

Purpose

This paper aims to propose a two-period model, including an original manufacturer, a retailer and a third-party remanufacturer, in which the products manufactured by the original manufacturer are patent-protected and the remanufacturing degree of remanufactured products influences the purchasing decisions of consumers.

Design/methodology/approach

This paper analyzes the decisions of the original manufacturer, the retailer and the third-party remanufacturer of two periods, using Stackelberg game and obtains the equilibrium solutions of the three parties.

Findings

The study finds that consumers’ focus degree to the remanufacturing degree has a negative correlation with the equilibrium unit patent-licensing fee, the retail price of remanufactured products, the remanufacturing degree of remanufactured products and the wholesale price of new products in the first period, but has a positive correlation with the retail price of new products in the second period.

Originality/value

(1) Consumers’ focus degree to the remanufacturing degree has a negative correlation with the equilibrium unit patent-licensing fee, the retail price of remanufactured products, the remanufacturing degree of remanufactured products and the wholesale price of new products in the first period, but has a positive correlation with the retail price of new products in the second period. (2) The remanufacturing action efficiency of the third-party remanufacturer has a positive correlation with the equilibrium unit patent-licensing fee, the retail price of remanufactured products, the remanufacturing degree of remanufactured products and the wholesale and retail prices of new products in the second period.

Details

Kybernetes, vol. 49 no. 3
Type: Research Article
ISSN: 0368-492X

Keywords

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