Closed Loop Supply Chain (CLSC): economics, modelling, management and control

This article summarizes the papers published in the special issue entitled “Closed Loop Supply Chain (CLSC): Economics, Modelling, Management and Control” in the International Journal of Production Economics. A total of 24 papers, covering an extensive range of topics in the Closed Loop Supply Chain research area, have been included in this special issue. This special issue received a wide and diverse geographical contribution with authors from 16 countries located in 4 continents including America, Asia, Europe, and Africa. Initially, the special issue received 71 research paper submissions and the final selection of 24 papers, which were recommended by at least two reviewers, provide a basis for new research directions in the domain of reverse logistics and Closed Loop Supply Chain management

Game-theoretic analysis to examine how government subsidy policies affect a closed-loop supply chain decision

The pros and cons of government subsidy policies in a closed-loop supply chain (CLSC) setting on optimal pricing, investment decisions in improving product quality, and used product collection under social welfare (SW) optimization goal have not been examined comprehensively. This study compares the outcomes of three government policies under manufacturer-Stackelberg (MS) and retailer-Stackelberg (RS), namely (i) direct subsidy to the consumer, (ii) subsidy to the manufacturer to stimulate used product collection, and (iii) subsidy to the manufacturer to improve product quality. Results demonstrate that the greening level, used product collection, and SW are always higher under the RS game, but the rate of a subsidy granted by the government is always higher under the MS game. Profits for the CLSC members and SW are always higher if the government provides a subsidy directly to the consumer, but productivity of investment in the perspective of the manufacturer or government are less. In a second policy, the government organizations grant a subsidy to the manufacturer to stimulate used product collection, but it does not necessarily yield the desired outcome compared to others. In a third policy, the manufacturer receives a subsidy on a research and development (R&D) investment, but it yields a sub-optimal greening level. This study reveals that the outcomes of subsidy policies can bring benefit to consumers and add a degree of complication for CLSC members; government organizations need to inspect carefully among attributes, mainly product type, power of CLSC members, and investment efficiency for the manufacturer, before implementing any subsidy policies so that it can lead to an environmentally and economically viable outcome

Pricing Decision of Closed-Loop Supply Chain to Improve Service Level under Patent Protection

This paper constructs a two-level closed-loop supply chain system consisting of original parts manufacturers and parts distributors. Based on the different preferences of consumers for remanufactured parts and new parts, four combination models of patent protection and service improvement are constructed. Through comparative analysis, the impact of implementing patent protection policies by original parts manufacturers and improving service levels by parts distributors on the pricing decisions of the closed-loop supply chain is explored.Through the comparison between related models and the verification of calculation examples, it is found that (1) a manufacturer prevents the price of new products from being affected by the price of remanufactured products and upgrading of service level by introducing royalties, which reduces its loss of profit; (2) in the absence of patent protection, the manufacturerꞌs profit decreases as the level of service increases; in the presence of patent protection, the manufacturerꞌs profit increases as the level of service increases; (3) retailersꞌ profits decrease after the manufacturer introduces royalties, which discourages them to improve service levels for remanufactured products; (4) as retailers raise the service level of the remanufactured products, the profits of the manufacturer and third-party manufacturers keep increasing, while the profits of the retailers first increase and then decrease

A study of closed-loop supply chain models with governmental incentives and fees

A rich mixture of government incentives and fees to encourage the collection of used products and the subsequent remanufacturing has been increasingly utilized both domestically and internationally. In this paper, toward a fuller understanding of such government participation in closed-loop supply chains (CLSC\u27s), we construct and analyze a series of game-theoretic CLSC models with remanufacturing. Specifically, we investigate a basic decentralized CLSC model, two government participation models of linear incentives and fees as well as of central coordination via alternative financial instruments, and a revenue-sharing contract model without the government participation. We also analyze the impact of competition among manufacturers in our results. A key differentiating feature in our government participation models is the incorporation of the revenue neutrality requirement from a government\u27s perspective whose financial sources for such incentives must eventually reconcile with the financial sinks for such fees. By comparing and contrasting the equilibrium solutions and the economic consequences of these models, managerial insights and economic implications relevant to academics and practitioners including decision and policy makers are obtained. For example, we show how the government participation can induce an entry or prevent an exit of a CLSC when one or more members are unprofitable

From e-trash to e-treasure: how value can be created by the new e-business models for reverse logistics

Reverse logistics, that is, all operations related to the reuse of used products, excess inventory and packaging materials, gain increasing attention globally both for their promising financial potentials, the sustainable growth alternative they offer and the environmental positive impact they have. In this paper, we introduce reverse logistics and we explain how the adoption of e-commerce provides new possibilities to existing business models and what are the new e-business models in reverse logistics that have emerged. We compare these three new e-business models, namely, returns aggregators, specialty locators and integrated solution providers on a number of aspects and identify keys for their competitive advantage. Finally, we discuss conceptual and actual opportunities for these e-business models to thrive and advance and present some e-commerce tools that are being developed with the aim to address the distributed, dynamic and knowledge-intensive aspects of applications that contribute to the advancement of e-businesses in the field of reverse logistics.e-commerce;Reverse logistics;e-business models