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<p>Closed-loop Supply Chain (CLSC) creates numerous opportunities for manufacturers, including reuse, remanufacturing, recycling, and extending product lifetime. Since many products are discarded after use, the lost value can be captured by returning products for reuse, remanufacturing, or recycling. The purpose of this study is to propose channel frameworks which can help decision-makers to choose a proper strategy that considers the positive environmental effects as well as profit augmentation for CLSC management. The issue of determining the optimal channel strategy is addressed for a CLSC that sells products to customers and collects used items from them. The supply chain comprises a manufacturer, a retailer, and a collector of used products who is a collection service provider. Four different channel frameworks are presented for the CLSC management and one of them needs to be selected. They include (1) a single-channel forward supply chain (SC) with a single collection channel (the SS structure), (2) a single-channel forward SC with dual collection channel (the SD structure), (3) a dual-channel forward SC with single collection channel (the DS structure), and (4) a dual-channel forward SC with dual collection mean (the DD structure). Actually, this study points to examining the effect of the emergence of a direct channel in forward SC and third party in reverse SC on different decision variables including the selling price, cross-price, quality level of products, warranty period, buyback price, and sales and collection efforts. Models are constructed to derive the optimal decisions for the CLSC regarding the choice between four-channel formats. In this study, a minimum quality of returned items for remanufacturing is considered. Moreover, a situation of a CLCS with one retailer is assumed. Additionally, the number of failures during the warranty period follows a Poisson distribution. The introduction of a dual-channel supply chain raises the quality level of products and warranty services. In addition, the size of the market share affects strategy selection and purchase price. Results show that the selling channel whose market share is greater than the others offers products at higher prices and puts more investment in advertisement. Furthermore, the collection channel whose market share is greater than the others collects used items at lower buyback price and exerts more effort for collection. Numerical examples are run to study the effects of the key model parameters on the optimum solutions and generate managerial perceptions from the analytical results.</p>

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A closed loop supply chain with environmental, manufacturing and recycling decisions

  • 期刊论文

  • 发表日期：

    2025年7月24日

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  • Ata Allah Taleizadeh,
  • Mohammad Sadegh Moshtagh,
  • Amir Hossein Patoghi,
  • Hamidreza Abedsoltan

摘要

Closed-loop Supply Chain (CLSC) creates numerous opportunities for manufacturers, including reuse, remanufacturing, recycling, and extending product lifetime. Since many products are discarded after use, the lost value can be captured by returning products for reuse, remanufacturing, or recycling. The purpose of this study is to propose channel frameworks which can help decision-makers to choose a proper strategy that considers the positive environmental effects as well as profit augmentation for CLSC management. The issue of determining the optimal channel strategy is addressed for a CLSC that sells products to customers and collects used items from them. The supply chain comprises a manufacturer, a retailer, and a collector of used products who is a collection service provider. Four different channel frameworks are presented for the CLSC management and one of them needs to be selected. They include (1) a single-channel forward supply chain (SC) with a single collection channel (the SS structure), (2) a single-channel forward SC with dual collection channel (the SD structure), (3) a dual-channel forward SC with single collection channel (the DS structure), and (4) a dual-channel forward SC with dual collection mean (the DD structure). Actually, this study points to examining the effect of the emergence of a direct channel in forward SC and third party in reverse SC on different decision variables including the selling price, cross-price, quality level of products, warranty period, buyback price, and sales and collection efforts. Models are constructed to derive the optimal decisions for the CLSC regarding the choice between four-channel formats. In this study, a minimum quality of returned items for remanufacturing is considered. Moreover, a situation of a CLCS with one retailer is assumed. Additionally, the number of failures during the warranty period follows a Poisson distribution. The introduction of a dual-channel supply chain raises the quality level of products and warranty services. In addition, the size of the market share affects strategy selection and purchase price. Results show that the selling channel whose market share is greater than the others offers products at higher prices and puts more investment in advertisement. Furthermore, the collection channel whose market share is greater than the others collects used items at lower buyback price and exerts more effort for collection. Numerical examples are run to study the effects of the key model parameters on the optimum solutions and generate managerial perceptions from the analytical results.