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Article
Publication date: 13 March 2009

C. Clifford Defee, Terry Esper and Diane Mollenkopf

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

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5609

Abstract

Purpose

The paper's aim is to develop a closed‐loop 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 closed‐loop 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 closed‐loop 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, closed‐loop view of the supply chain.

Details

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

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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

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3655

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 closed‐loop 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 closed‐loop 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 closed‐loop 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 closed‐loop 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 closed‐loop 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

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Article
Publication date: 7 June 2013

John E. Bell, Diane A. Mollenkopf and Hannah J. Stolze

This research aims to provide a theoretical framework for exploring how firms can respond to the growing threat of natural resource scarcity. Specifically, the role of…

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9602

Abstract

Purpose

This research aims to provide a theoretical framework for exploring how firms can respond to the growing threat of natural resource scarcity. Specifically, the role of closed‐loop supply chain management is examined as a means for creating resource advantages that can lead to marketplace competitive advantages.

Design/methodology/approach

The research extends previous theoretical research, integrating natural resource scarcity and closed‐loop supply chain management for the first time. Resource‐advantage theory is employed as the theoretical lens for the research model and propositions.

Findings

The findings deepen understanding of the forces that create natural resource scarcity conditions in the supply chain, and highlight the need for higher order closed‐loop capabilities that have the ability to mitigate natural resource scarcity.

Research limitations/implications

The theoretical model and six research propositions suggest relationships between natural resource scarcity, closed‐loop capabilities, and firm level performance that need to be tested empirically. Future research opportunities and methodologies are suggested.

Practical implications

Growing natural resource scarcity is already having a major impact on many firms and industries; therefore, this research has significant managerial implications due to supply risks and potential disruptions caused by insufficient natural resources in current and future supply chains.

Originality/value

This paper seeks to increase discussion about natural resource scarcity and bring it into focus as a relevant supply chain topic related to closed‐loop supply chain capabilities and the internal firm level resources needed to ensure performance in a changing world.

Details

International Journal of Physical Distribution & Logistics Management, vol. 43 no. 5/6
Type: Research Article
ISSN: 0960-0035

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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 closed‐loop supply chains, the reverse component has become an inherent part of the business, not to mention a core…

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5483

Abstract

Purpose

In a growing number of competitive sectors with closed‐loop 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 closed‐loop supply chain.

Findings

The proposed set of measures for auditing purposes provide an overall picture of the performance of a closed‐loop 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 closed‐loop 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 closed‐loop 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 closed‐loop 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

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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…

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.

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Article
Publication date: 18 October 2021

Farshid Jahanshahee Nezhad, Mohammadreza Taghizadeh-Yazdi, Jalil Heidary Dahooie, Ali Zamani Babgohari and Seyed Mojtaba Sajadi

Environmental awareness is increasing among people in developing countries. In this regard, companies should consider ecological goals in addition to financial goals…

Abstract

Purpose

Environmental awareness is increasing among people in developing countries. In this regard, companies should consider ecological goals in addition to financial goals. Since the food industry is recognised as one of the largest emitters of CO2, profit and ecological objectives are optimised in radio-frequency identification (RFID) based closed-loop supply chain in the food industry in this paper.

Design/methodology/approach

Based on the literature, companies with a green entrepreneurial orientation (GEO) can turn ecological problems into opportunities using their proactiveness. In this regard, a new mixed-integer non-linear mathematical model is presented for optimising a new multi-product RFID-based closed-loop supply chain with a GEO in the food industry. The case study in this paper is Ofogh-e Kourosh company which is located in Iran. The GAMS software is used to code this model.

Findings

The optimum number of new products and materials flow was found among the closed-loop supply chain entities. Some factors as price, quality and warranty of products were considered, and the number of reopening of facilities if needed was set. The optimum node for RFID installation was found.

Originality/value

The paper presents a multi-objective mathematical model for optimising a multi-product RFID-based closed-loop supply chain with a GEO in the food industry. In addition, this paper gives insights into how can model this type of supply chain considering ecological and financial attributes.

Details

British Food Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0007-070X

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Article
Publication date: 13 June 2016

Joe Miemczyk, Mickey Howard and Thomas E. Johnsen

This paper aims to reflect on recent closed-loop supply chain (CLSC) practices using a natural resource-based view (NRBV) and dynamic capabilities (DC) perspective.

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2805

Abstract

Purpose

This paper aims to reflect on recent closed-loop supply chain (CLSC) practices using a natural resource-based view (NRBV) and dynamic capabilities (DC) perspective.

Design/methodology/approach

Two empirical case studies of CLSC exemplars are used to discuss the theoretical relevance of these views.

Findings

The paper shows how strategic resources help companies in two sectors achieve successful CLSC designs. Strategic supply chain collaboration is an important success factor but also presents a number of challenges. The NRBV is used to explain the importance of new resources in technology, knowledge and relationships and stresses the role of DCs to constantly address changes in the business environment to renew these strategic resources.

Research limitations/implications

This research elaborates on NRBV theory related to CLSCs and reinforces the inclusion of DCs. It specifies the application of NRBV in the context of textiles and carpet manufacture and highlights the inherent conflicts in seeking value while moving towards sustainable development.

Practical implications

Investments in technical and operational resources are required to create CLSCs. Pure closed-loop applications are impractical, requiring relationships with multiple external partners to obtain supply and demand for recycled products.

Social implications

CLSCs may provide opportunities for social enterprises or third sector organizations collaborating with manufacturers.

Originality/value

This paper provides insights into the constituent resources needed for successful CLSCs. It also helps move CLSC research from a tactical logistics problem to a problem of strategic resources and relational capabilities: what we term “dynamic supply chain execution”. This paper develops a framework for transitioning towards CLSCs, underlining the importance of co-development and forging new relationships through commitment to supply chain redesign, co-evolution with customers and suppliers and control of supply chain activities.

Details

Supply Chain Management: An International Journal, vol. 21 no. 4
Type: Research Article
ISSN: 1359-8546

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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.

Details

Journal of Modelling in Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-5664

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Article
Publication date: 20 April 2012

Pierre Hadaya and Philippe Marchildon

This study attempts to expand knowledge of product lifecycle management (PLM) and supporting systems. Its objective is threefold: first, to identify and assess the impact…

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3901

Abstract

Purpose

This study attempts to expand knowledge of product lifecycle management (PLM) and supporting systems. Its objective is threefold: first, to identify and assess the impact of two key PLM building blocks on new product performance. Second, to use the aforementioned PLM building blocks to highlight the distinctive nature of PLM and closed‐loop PLM systems. Third, to demonstrate that the closed‐loop PLM system provides more new product benefits than the PLM system and that the usage of the closed‐loop PLM system is positively related to new product development.

Design/methodology/approach

The research hypotheses were tested on data collected from 87 manufacturers in the transportation equipment manufacturing industry in one Canadian province.

Findings

The findings show that only ten manufacturers have adopted a closed‐loop PLM system. As expected, the results show that the two key PLM building blocks, namely operational integration and information system (IS) usage, are positively related to new product development. Findings also show that the level of forward operational integration is similar in the closed‐loop PLM system and in the PLM system, while the level of backward operational integration, the usage of the PLM system and new product development are higher in the closed‐loop PLM system. Finally, the results demonstrate that the usage of the closed‐loop PLM system is positively related to new product development.

Originality/value

This contribution should give academics and practitioners alike a better understanding of the role and benefits of PLM and its supporting systems (the PLM system and the closed‐loop PLM system).

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Article
Publication date: 2 September 2019

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

Keywords

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