The boomerang returns? Accounting for the impact of uncertainties on the dynamics of remanufacturing systems

Recent years have witnessed companies abandon traditional open-loop supply chain structures in favour of closed-loop variants, in a bid to mitigate environmental impacts and exploit economic opportunities. Central to the closed-loop paradigm is remanufacturing: the restoration of used products to useful life. While this operational model has huge potential to extend product life-cycles, the collection and recovery processes diminish the effectiveness of existing control mechanisms for open-loop systems. We systematically review the literature in the field of closed-loop supply chain dynamics, which explores the time-varying interactions of material and information flows in the different elements of remanufacturing supply chains. We supplement this with further reviews of what we call the three ‘pillars’ of such systems, i.e. forecasting, collection, and inventory and production control. This provides us with an interdisciplinary lens to investigate how a ‘boomerang’ effect (i.e. sale, consumption, and return processes) impacts on the behaviour of the closed-loop system and to understand how it can be controlled. To facilitate this, we contrast closed-loop supply chain dynamics research to the well-developed research in each pillar; explore how different disciplines have accommodated the supply, process, demand, and control uncertainties; and provide insights for future research on the dynamics of remanufacturing systems

Solving closed-loop supply chain problems using game theoretic particle swarm optimisation

© 2018, © 2018 Informa UK Limited, trading as Taylor & Francis Group. In this paper, we propose a closed-loop supply chain network configuration model and a solution methodology that aim to address several research gaps in the literature. The proposed solution methodology employs a novel metaheuristic algorithm, along with the popular gradient descent search method, to aid location-allocation and pricing-inventory decisions in a two-stage process. In the first stage, we use an improved version of the particle swarm optimisation (PSO) algorithm, which we call improved PSO (IPSO), to solve the location-allocation problem (LAP). The IPSO algorithm is developed by introducing mutation to avoid premature convergence and embedding an evolutionary game-based procedure known as replicator dynamics to increase the rate of convergence. The results obtained through the application of IPSO are used as input in the second stage to solve the inventory-pricing problem. In this stage, we use the gradient descent search method to determine the selling price of new products and the buy-back price of returned products, as well as inventory cycle times for both product types. Numerical evaluations undertaken using problem instances of different scales confirm that the proposed IPSO algorithm performs better than the comparable traditional PSO, simulated annealing (SA) and genetic algorithm (GA) methods

The design of green supply chains under carbon policies: A literature review of quantitative models

Carbon footprinting of products and services is getting increasing attention due to the growing emphasis on carbon related policies in many countries. As a result, many enterprises are focusing on the design of green supply chains (GSCs) with research on supply chains (SCs) focused not only on cost efficiency, but also on its environmental consequences. The review presented in this paper focuses on the implications of carbon policies on SCs. The concept of content analysis is used to retrieve and analyze the information regarding drivers (carbon policies), actors (for example, manufacturers and retailers), methodologies (mathematical modeling techniques), decision-making contexts (such as, facility location and order quantity), and emission reduction opportunities. The review shows a lack of emissions analysis of SCs that face carbon policies in different countries. The research also focuses on the design of carbon policies for emissions reduction in different operating situations. Some possible research directions are also discussed at the end of this review.A NPRP award NPRP No.5-1284-5-198 from the Qatar National Research Fund (a member of The Qatar Foundation).Scopu

Uncertainty Models in Reverse Supply Chain: A Review

Reverse logistic has become an important topic for the organization due to growing environmental concern, government regulation, economic value, and sustainable competitiveness. Uncertainty is one of the key factors in the reverse supply chain that must be controlled; thus, the company could optimize the reverse supply chain function. This paper discusses progress in reverse logistic research. A total of 72 published articles were selected, analyzed, categorized and the research gaps were found among them. The study began by analyzed previous research articles in reverse logistic. In this stage, we also collected and reviewed journals discussing about the reverse supply chain. Meanwhile, the result of this stage shows that uncertainty factor has not been reviewed in detail. The most common theme as the background research in reverse logistic is environmental and economic aspect. Uncertainty in Close Loop Supply Chain is the most widely used approach, followed by the usage on reverse logistics, reverse supply chain and reverse Model. The most used approach and method on uncertainty are Mixed Integer Linear Programing, mixed integer nonlinear Programing, Robust Fuzzy Stochastic Programming, and Improved kriging-assisted robust optimization method. Customer demand, total cost, product returns are the most widely researched aspects. This paper may be useful for academicians, researchers and practitioners in learning on reverse logistic and reverse supply chain; therefore, close loop supply chain can be guidance for upcoming researches. Research opportunity based on this research combines total cost, quality return product, truck capacity, delivery route, remanufacturing capacity, and facility location got optimum function in uncertainty. The research method and approach for MINLP, IK-MRO and RSFP provide many opportunities for research. For theme and area in reverse logistic, close loop supply chain is the theme that provides the most research opportunities

Supply chain network design models for a circular economy: a review and a case study assessment

Global supply chains are getting increasingly dispersed, and hence, more complex. This has also made them more vulnerable to disruptions and risks. As a result, there is a constant need to reconfigure/redesign them to ensure competitiveness. However, the relevant aspects/facets for doing so are fragmented and scattered across the literature. This study reviews the literature to develop a holistic understanding of the key considerations (environment, cost, efficiency, and risks) in designing/redesigning global supply chains. This understanding is then applied to assess the global supply chain network of a leading multinational tire manufacturing firm; also to provide recommendations on redesigning it. The study has significant practical and research implications for global supply chain management

Essays on product return management and closed loop-supply chain network design

This dissertation focuses on managerial and operational challenges associated with product return management and CLSC network design. The possibility of product return plays an important role in consumer\u27s purchase decisions. It also motivates firms to extend their forward-only supply chain network structures to a Closed-Loop Supply Chain (CLSC) network and handle both forward and reverse flows of products. While the configuration of the CLSC network is a complex problem comprised of the determination of the optimal locations and capacities of factories, warehouses and collection centers, this problem becomes even more complex under the potential regulations on carbon emissions. This dissertation follows a three-paper format. With a focus on product return management, the first paper studies the roles that pricing and return policy play in the product exchange process for refurbished products. We first apply netnography to study consumer attitudes, general opinions and experiences concerning refurbished electronics purchases, and then propose an analytical model that considers customers\u27 purchasing and return behavior as a result of the firm\u27s decisions regarding the pricing and return policy for refurbished products. The numerical results suggest that sellers should deliberately consider the market segmentation conditions, consumer valuation, and cost factors when choosing the appropriate price and return policy for refurbished products. The second and third paper focus on different aspects of CLSC network design. The second paper investigates a problem to design facility configurations that are robust to variations in possible carbon regulations and their cost and constraint implications. We establish a two-stage, multi-period stochastic programming model to include uncertain demand and return quantities and then extended it to incorporate the uncertainties in carbon regulation policy by the robust optimization method. We propose a hybrid model to account for either carbon tax or cap-and-trade regulatory policies and derive tractable robust counterparts under box and ellipsoidal uncertainty sets. Implications for network configuration, product allocation and transportation configuration are derived. We also present computational results that illustrate how the problem formulation under an ellipsoidal uncertainty set allows the decision maker to balance the trade-off between robustness and performance. The third paper formulates and solves an integrated model for product return management and CLSC network design considering uncertain carbon cost. We build a robust optimization model to address the carbon cost uncertainty, and develop a piecewise linear approximation for the nonlinear profit as a function of the refund. The results of the robust model are compared with those of deterministic models where no or only nominal carbon cost is considered. Extensive parametric analyses illustrate the impact of the cost, revenue and consumer profile parameters on the optimal refund, profit and network topology

A Bi-objective cap-and-trade model for minimising environmental impact in closed-loop supply chains

A Closed-Loop Supply Chain (CLSC) is a complex network with unique environmental features and attributes that requires specific managerial policies and strategies. Quantitative models can provide a solid basis for these policies and strategies. This study expands the work of Shoaeinaeini et al. (2021) on Green Supply Chain Management. We propose a bi-objective facility location, demand allocation, and pricing model for CLSC networks. The proposed model considers two conflicting objective functions: maximising profits and minimising emissions. We show consumer environmental awareness can predict the products’ rate of return and determine a more suitable price for new products and the acquisition price for used products. The cap-and-trade policy has been implemented at its fullest potential, allowing the trading of carbon quotas. Therefore, companies may decide to produce less to sell more quotas or vice-versa, effectively picking the most profitable option. The model is solved and tested with the commercial solver BARON. The model effectively shows the trade-off between generating profits and emission reduction. Companies are able to turn a profit while abiding by the government’s intention of reducing emissions. The comparison with a single-objective version of the model highlights that the concurrent optimisation of economic and environmental objectives yields better results. The acquisition price of used products is a value worthy of monitoring. The government should focus on policies to assist the reverse flow of used products

Developing Model Of Closed Loop Supply Chain Network For Subsidized Lpg 3-Kgs In East Java-Indonesia

Demand of subsidized LPG 3-kgs in Indonesia has been increasing since the Indonesian government imposed a conversion program from kerosene to Liquefied Petroleum Gas (LPG) in 2007. The high increase in demand for subsidized LPG 3-kgs led to the scarcity of products availability. The design of a closed distribution system is required to ensure the availability of subsidized LPG 3-kgs. In this research, the development model of the integration of closed loop supply chain network and vehicle routing problem with simultaneous deliveries and pick-ups with time windows has been proposed. The mechanism of closed distribution system starts from the distributors send LPG empty tubes to filling stations. After filling station inspected and filled the LPG tubes, distributors delivered LPG 3-kgs subsidized from the filling station to some retailers. At the same time, the distributors take back the empty tubes from these retailers by considering the limitations of operational time in each retailers. The proposed model was tested on numerical example and analyzed the result