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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 the…

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

Article
Publication date: 5 October 2018

Surajit Bag, Shivam Gupta and Cyril Foropon

Worldwide, facing increasing resources pressure, more and more manufacturing firms aim to circular economy (CE), which is a system characterized by the application of…

3031

Abstract

Purpose

Worldwide, facing increasing resources pressure, more and more manufacturing firms aim to circular economy (CE), which is a system characterized by the application of remanufacturing principles and adoption of sustainable manufacturing practices. The purpose of this paper is to investigate the function of remanufacturing capability in influencing supply chain resilience in supply chain networks under the moderating effects of both flexible orientation and control orientation.

Design/methodology/approach

Data were gathered through a survey performed online in South Africa, and 150 participants completed the survey. Participants were mainly industry professionals holding senior administrative positions.

Findings

Results indicate that market factors, management factors and technical factors positively influence dynamic remanufacturing capability (DRC). More specifically, on one hand, market factors strongly influence DRC, whereas, on the other hand, both management and technical factors influence at lower level DRC. DRC has a positive influence on supply chain resilience. Flexible orientation is found to positively moderate the effect of DRC on supply chain resilience, whereas control orientation does not exert any moderating effect on DRC and supply chain resilience.

Originality/value

This is one of the first studies that explore research gaps between current vs desired remanufacturing capability requirements to achieve sustainability goals in CE.

Details

Management Decision, vol. 57 no. 4
Type: Research Article
ISSN: 0025-1747

Keywords

Open Access
Article
Publication date: 6 June 2023

Xiaogang Cao, Hui Wen and Bowei Cao

In this paper, the authors study the production and pricing decisions of a remanufacturing supply chain composed of a supplier, an assembler and a remanufacturer, in which the…

Abstract

Purpose

In this paper, the authors study the production and pricing decisions of a remanufacturing supply chain composed of a supplier, an assembler and a remanufacturer, in which the remanufacturing of components requires patent licensing from the supplier.

Design/methodology/approach

The authors consider three different models with government subsidy for remanufacturing: (1) no government subsidies; (2) the government subsidizes the remanufacturing behavior of the supplier and (3) the government subsidizes the remanufacturing behavior of the remanufacturer and use the Stackelberg game model to solve and analyze the equilibrium wholesale prices of components and the equilibrium outputs of new and remanufactured products under three subsidy modes.

Findings

The results show that the equilibrium wholesale prices of two kinds of components decrease with the unit patent licensing fee and the unit government subsidy, and the equilibrium quantity of the remanufactured products under the three modes is obviously higher than that of the new products.

Originality/value

Finally through numerical simulation, it is found that the equilibrium profits of the supplier, the manufacturer and the supply chain increase monotonously in relation to the unit government subsidy, while the optimal profit of the assembler in relation to the unit government subsidy tends to decrease first and then increase.

Details

Modern Supply Chain Research and Applications, vol. 5 no. 2
Type: Research Article
ISSN: 2631-3871

Keywords

Article
Publication date: 12 November 2020

Zulfiquar N. Ansari, Ravi Kant and Ravi Shankar

Re-use of products in the supply chain has become a significant consideration in the last decade. It has resulted in the development of several product recovery alternatives…

Abstract

Purpose

Re-use of products in the supply chain has become a significant consideration in the last decade. It has resulted in the development of several product recovery alternatives. Remanufacturing in the supply chain is one such product recovery option that yields social, economic and environmental benefits. This study aims is to identify and evaluate the key performance indicators (KPIs) of the remanufacturing supply chain (RSC).

Design/methodology/approach

The KPIs of RSC are classified along with the five primary management processes (plan, source, make, deliver and return) of the supply chain operations reference (SCOR) model. A grey decision-making trial and evaluation laboratory (DEMATEL) technique is applied to investigate the complex interrelationships amongst the identified KPIs and categorize them into cause and effect group. The applicability of the proposed framework is demonstrated through a case organization involved in remanufacturing business.

Findings

The KPIs are identified based on literature analysis and subsequent discussion with decision panel experts. The present research work results reveal that “consumer awareness program”, “technological compatibility” and skilled workforce' are the most influential indicators.

Originality/value

This research work provides a framework to evaluate the causal relationship between the RSC KPIs. The framework proposed in this study is empirically applied to a case organization. Based on the study findings some important recommendations are presented to the decision-makers/policy planners to help them develop an action plan. This would help the case organization reduce resource consumption, increase market share and enable sustainable development.

Details

International Journal of Productivity and Performance Management, vol. 71 no. 1
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 29 June 2022

Robin Hofmeester and Daniel R. Eyers

There is now much emphasis in both research and practice on the principles of circular economies. In this paper remanufacturing is examined as a key enabler of circular practices…

Abstract

Purpose

There is now much emphasis in both research and practice on the principles of circular economies. In this paper remanufacturing is examined as a key enabler of circular practices, and the concept of “Product-Agnostic Manufacturing” (PAR) is proposed. This work differentiates PAR from many traditional approaches to remanufacturing by virtue of PAR's treatment of product variety. Most existing approaches to remanufacturing feature low variety and standardisation; this study instead suggests that the exploitation of flexibilities in both operations and supply chains leads to new competitive strategies for firms to exploit.

Design/methodology/approach

This is a conceptual study that builds on a thorough exploration of contemporary remanufacturing literature in the development of the new PAR concept.

Findings

Through a detailed literature review it is shown that there are a range of benefits, challenges, and critical success factors that underpin the remanufacturing concept. Building on this understanding and bridging literature in operations flexibility and supply chain design, a detailed discussion on the nature of PAR is provided, and an agenda for future research developed.

Originality/value

Whilst there has been much literature on remanufacturing, there is a general tendency to treat supply chain and remanufacturing operations quite distinctly in individual articles. Additionally, there has been little consideration of multi-product remanufacturing, and for the limited studies where this is done, the emphasis is typically on problem avoidance. This study aims to provide a detailed insight into the developed PAR concept, showing how the remanufacture of a wide range of product varieties may be achieved through flexible operations and supply chain design.

Details

The International Journal of Logistics Management, vol. 34 no. 6
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 17 July 2023

Ali Nikseresht, Davood Golmohammadi and Mostafa Zandieh

This study reviews scholarly work in sustainable green logistics and remanufacturing (SGLR) and their subdisciplines, in combination with bibliometric, thematic and content…

1330

Abstract

Purpose

This study reviews scholarly work in sustainable green logistics and remanufacturing (SGLR) and their subdisciplines, in combination with bibliometric, thematic and content analyses that provide a viewpoint on categorization and a future research agenda. This paper provides insight into current research trends in the subjects of interest by examining the most essential and most referenced articles promoting sustainability and climate-neutral logistics.

Design/methodology/approach

For the literature review, the authors extracted and sifted 2180 research and review papers for the period 2008–2023 from the Scopus database. The authors performed bibliometric and content analyses using multiple software programs such as Gephi, VOSviewer and R programming.

Findings

The SGLR papers can be grouped into seven clusters: (1) The circular economy facets; (2) Decarbonization of operations to nurture a climate-neutral business; (3) Green sustainable supply chain management; (4) Drivers and barriers of reverse logistics and the circular economy; (5) Business models for sustainable logistics and the circular economy; (6) Transportation problems in sustainable green logistics and (7) Digitalization of logistics and supply chain management.

Practical implications

In this review, fundamental ideas are established, research gaps are identified and multiple future research subjects are proposed. These propositions are categorized into three main research streams, i.e. (1) Digitalization of SGLR, (2) Enhancing scopes, sectors and industries in the context of SGLR and (3) Developing more efficient and effective climate-neutral and climate change-related solutions and promoting more environmental-related and sustainability research concerning SGLR. In addition, two conceptual models concerning SGLR and climate-neutral strategies are developed and presented for managers and practitioners to consider when adopting green and sustainability principles in supply chains. This review also highlights the need for academics to go beyond frameworks and build new techniques and instruments for monitoring SGLR performance in the real world.

Originality/value

This study provides an overview of the evolution of SGLR; it also clarifies concepts, environmental concerns and climate change practices, particularly those directed to supply chain management.

Details

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

Keywords

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: 15 August 2022

Bibhas Chandra Giri and Sushil Kumar Dey

The purpose of this study is to investigate the impact of greening and promotional effort dependent stochastic market demand on the remanufacturer's and the collector's profits…

Abstract

Purpose

The purpose of this study is to investigate the impact of greening and promotional effort dependent stochastic market demand on the remanufacturer's and the collector's profits when the quality of used products for remanufacturing is uncertain in a reverse supply chain.

Design/methodology/approach

The proposed model is developed to obtain optimal profits for the remanufacturer, the collector and the whole supply chain. Both the centralized and decentralized scenarios are considered. To motivate the collector through profit enhancement, the remanufacturer designs a cost-sharing contract. Through numerical examples and sensitivity analysis, the consequences of greenness and promotional effort on optimal profits are investigated.

Findings

The results show that the remanufacturer gets benefited from greening and promotional effort enhancement. However, a higher value of minimum acceptable quality level decreases the profits of the manufacturer and the collector. A cost-sharing contract coordinates the supply chain and improves the remanufacturer's and the collector's profits. Besides green innovation, remanufacturing mitigates the harmful effects of waste in the environment.

Originality/value

Two different viewpoints of remanufacturing are considered here – environmental sustainability and economic sustainability. This paper considers a reverse supply chain with a remanufacturer who remanufactures the used products collected by the collector. The quality of used products is uncertain, and customer demand is stochastic, green and promotional effort sensitive. These two types of uncertainty with green and promotional effort sensitive customer demand differs the current paper from the existing literature.

Details

Kybernetes, vol. 52 no. 11
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 13 July 2018

Matthias Kalverkamp

The circular economy grows in popularity in sustainability-oriented environments. Remanufacturing contributes to circularity though it faces challenges regarding reverse supply

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Abstract

Purpose

The circular economy grows in popularity in sustainability-oriented environments. Remanufacturing contributes to circularity though it faces challenges regarding reverse supply chains (SCs). Literature focusses on closed-loop supply chains (CLSCs) for reverse flows of products. However, alternative SCs and different market actors provide used components (cores) for remanufacturing through “open-loops”. The purpose of this paper is to investigate the influence of independent actors on core supply and how especially middlemen implement supplier relationship management to address supply shortages in automotive remanufacturing.

Design/methodology/approach

The study follows a qualitative research approach to compare remanufacturing SCs in Europe and North America. The analysis aims to identify managerial leverage to reduce supply shortages.

Findings

Reduction of information asymmetries and transaction costs is crucial for “open-loop supply chains” to compete with more integrated CLSCs. The study identifies an e-procurement solution that addresses these issues and helps to increase the supply through “open-loops”. Furthermore, regulation may hinder or facilitate supply.

Research limitations/implications

It needs to be further investigated to what extent e-procurement and supplier relationship management can reduce shortages. Middlemen who can collaborate with the research would provide further research opportunities.

Practical implications

If supplier relationship management adapts to the requirements of remanufacturing, it can increase the supply potential through “open-loop” SCs. The e-procurement solution could serve SCs beyond automotive remanufacturing. Policy makers need to revise legislation hindering these SCs.

Originality/value

The study provides novel findings regarding independent actors, their supplier relationship management and their potential to reduce shortages in independent SCs for remanufacturing.

Details

The International Journal of Logistics Management, vol. 29 no. 4
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 17 February 2022

Xiaodong Xia, Weida Chen and Biyu Liu

The purpose of this paper is to investigate the optimal production and financing strategies for the closed-loop supply chain (CLSC) composed of a capital-constrained original…

Abstract

Purpose

The purpose of this paper is to investigate the optimal production and financing strategies for the closed-loop supply chain (CLSC) composed of a capital-constrained original equipment manufacturer (OEM) and a risk-averse authorized remanufacturer (RM).

Design/methodology/approach

The authors formulate four models with different scenarios, namely, the OEM has sufficient capital; the OEM has limited capital without financing; the OEM adopts debt financing strategy; and the OEM adopts equity financing strategy. The equilibrium solutions of each scenario are obtained by backward induction method, the influences of risk aversion coefficient on the equilibrium solutions are examined and the OEM's optimal financing strategy is found by comparison analysis.

Findings

When the OEM's initial capital is limited and the equity dividend ratio is less than a certain threshold, the equity financing strategy is more advantageous for the OEM. However, if the OEM's initial capital is extremely scarce and the dividend proportion is large, the OEM prefers the debt financing strategy. When considering financing, consumer surplus always decreases as the risk aversion factor increases; the debt financing strategy is more environmentally friendly compared with the equity financing strategy. Only the debt financing strategy can make both members in the CLSC achieve a win-win situation in a certain region when the dividend ratio is sufficiently large.

Research limitations/implications

It will be more fascinating if the model extends to such a case that the production operation situation in the CLSC composed of multiple OEMs in multiple periods. Furthermore, the remanufacturer's risk-averse information is asymmetry may be more realistic in our daily life.

Originality/value

There are three main differences from the existing research. One is that the remanufacturer's risk aversion originates from the uncertain remanufacturing cost instead of the uncertain market demand. Another is that the boundary conditions of the OEM prefer to adopt debt financing is obtained through the envelope theorem with Lagrange multiplier method. Last but not the least, this paper provides a good theoretical reference and practical guidance for the OEM to make the rational financing strategy selection in face of different degree of capital scarcity in the CLSC system. The value of the three aspects provides a theoretical basis for the optimal operation decisions of capital-constrained manufacturer considering the remanufacturer's risk aversion in the CLSC operation system.

Details

Kybernetes, vol. 52 no. 8
Type: Research Article
ISSN: 0368-492X

Keywords

1 – 10 of over 1000