Revised Mode Switching Policy for a Hybrid Closed-Loop Supply Chain

This research paper investigates the advantages of implementing a closed-loop supply chain (CLSC) and underscores the potential enhancements in efficiency, productivity, and sustainability it offers. Additionally, it explores the integration of a hybrid CLSC to bolster a business's resilience in the face of disruptions and fluctuations in demand, particularly in mitigating the notorious bullwhip effects. Existing studies on hybrid CLSC have primarily focused on control strategies, mainly the development of a push–pull model, emphasizing the necessity for proactive bullwhip effect mitigation. However, these studies have overlooked a critical aspect—comprehending the implications of these strategies on the total cost while considering each mode in detail. The primary objective of our research is to propose the revised switching policy and calculate the total cost within a hybrid CLSC framework utilizing a Markov chain approach. We achieve this by constructing a revised hybrid push–pull model, subjecting it to analysis within a Markov chain framework, and assessing its cost-effectiveness, particularly in the context of bullwhip effect mitigation.