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<p>The supply chain incurs significant expenses due to the expiration of various degradable goods. This paper introduces a novel approach combining technological capabilities with supply chain management (SCM) strategies to tackle this issue. Technological advancements enable the supply chain to regenerate expired products for use in other goods. Simultaneously, integration and coordination techniques within the supply chain facilitate and optimise the implementation of this technology. This innovative solution aligns with zero waste principles in the circular economy and sustainable circular supply chain concepts. The study integrates a supply chain involving a retailer and a manufacturer, proposing a fresh product repurchase agreement. This mechanism aims to incentivise cooperation among members, encouraging their involvement in regenerative operations. The paper demonstrates the economic viability of this strategy only when the revenue generated per unit of reused product, along with the savings in disposal costs, exceeds the reprocessing expenses. Moreover, it illustrates that a unified supply chain employing this technology outperforms one that relies solely on integrated decision-making. In this study, the paper assesses a dairy supply chain that repurposes expired products into fertiliser to validate the model’s effectiveness and complexity. A comprehensive sensitivity analysis also highlights the positive impact of demand mean and standard deviation on the cooperation strategy, while longer replenishment cycle times negatively affect member profitability.&#xa0;&#xa0;&#xa0;</p>

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An Innovative Collaborative Coordination Approach for Zero Waste in the Circular Economy

  • 期刊论文

  • 发表日期：

    2025年4月7日

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  • Fahad Alam,
  • Maryam Khokhar,
  • Karamat Khan,
  • Munaza Bibi,
  • Nosherwan Khaliq

摘要

The supply chain incurs significant expenses due to the expiration of various degradable goods. This paper introduces a novel approach combining technological capabilities with supply chain management (SCM) strategies to tackle this issue. Technological advancements enable the supply chain to regenerate expired products for use in other goods. Simultaneously, integration and coordination techniques within the supply chain facilitate and optimise the implementation of this technology. This innovative solution aligns with zero waste principles in the circular economy and sustainable circular supply chain concepts. The study integrates a supply chain involving a retailer and a manufacturer, proposing a fresh product repurchase agreement. This mechanism aims to incentivise cooperation among members, encouraging their involvement in regenerative operations. The paper demonstrates the economic viability of this strategy only when the revenue generated per unit of reused product, along with the savings in disposal costs, exceeds the reprocessing expenses. Moreover, it illustrates that a unified supply chain employing this technology outperforms one that relies solely on integrated decision-making. In this study, the paper assesses a dairy supply chain that repurposes expired products into fertiliser to validate the model’s effectiveness and complexity. A comprehensive sensitivity analysis also highlights the positive impact of demand mean and standard deviation on the cooperation strategy, while longer replenishment cycle times negatively affect member profitability.