scholarly journals Optimal Manufacturing-Remanufacturing Production Policy for a Closed-Loop Supply Chain under Fill Rate and Budget Constraint in Bifuzzy Environments

2014 ◽  
Vol 2014 ◽  
pp. 1-14 ◽  
Author(s):  
Soumita Kundu ◽  
Tripti Chakrabarti ◽  
Dipak Kumar Jana
Keyword(s):  
Supply Chain ◽  
Closed Loop ◽  
Budget Constraint ◽  
Raw Material ◽  
Market Demand ◽  
Fill Rate ◽  
Closed Loop Supply Chain ◽  
Manufacturing Facility ◽  
Production Policy

We study a closed-loop supply chain involving a manufacturing facility and a remanufacturing facility. The manufacturer satisfies stochastic market demand by remanufacturing the used product into “as-new” one and producing new products from raw material in the remanufacturing facility and the manufacturing facility, respectively. The remanufacturing cost depends on the quality of used product. The problem is maximizing the manufacturer’s expected profit by jointly determining the collected quantity of used product and the ordered quantity of raw material. Following that we analyze the model with a fill rate constraint and a budget constraint separately and then with both the constraints. Next, to handle the imprecise nature of some parameters of the model, we develop the model with both constraints in bifuzzy environment. Finally numerical examples are presented to illustrate the models. The sensitivity analysis is also conducted to generate managerial insight.

scholarly journals Who Drives Green Innovation? A Game Theoretical Analysis of a Closed-Loop Supply Chain under Different Power Structures

2020 ◽  
Vol 17 (7) ◽  
pp. 2274 ◽  
Author(s):  
Dooho Lee
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Closed Loop ◽  
Stackelberg Game ◽  
Innovation Strategy ◽  
Market Demand ◽  
Green Innovation ◽  
Closed Loop Supply Chain ◽  
Innovation Strategies ◽  
Market Leadership

As awareness of environmental protection increases worldwide, enterprises have been building their supply chains in ways that conserve natural resources and minimize the creation of pollutants. One of the practical ways to make supply chains more sustainable is for enterprises to utilize green innovation strategies and to increase resource reuse. In this work, we focus on a closed-loop supply chain (CLSC) consisting of a manufacturer, a retailer, and a collector. In the investigated CLSC, the manufacturer and the retailer drive the green innovation strategy either individually or simultaneously to boost market demand. In the reverse flow of the CLSC, the collector is responsible for collecting consumers’ used products and transferring them to the manufacturer for remanufacturing. By combining two types of the market leadership and three types of green innovation strategies, we establish six different Stackelberg game models and solve them analytically. Through an extensive comparative analysis, we show who should have market leadership and who should drive the green innovation strategy in the CLSC. Various numerical examples are also given to support our major findings. One of our key findings suggests that the supply chain members must participate in green innovation activities at the same time to achieve a win-win scenario in the CLSC.

Study on Incentive Mechanism of MRCTM Closed-Loop Supply Chain Based on the Uncertainty Quality

2010 ◽  
Vol 108-111 ◽  
pp. 341-346
Author(s):  
Huang Ling
Keyword(s):  
Supply Chain ◽  
Closed Loop ◽  
Conversion Factor ◽  
Incentive Mechanism ◽  
Incentive Payment ◽  
Closed Loop Supply Chain ◽  
Optimal Analysis ◽  
The Incentive Mechanism ◽  
Product Recycling

In this paper, the MRCTM model of closed-loop supply chain was investigated. An effective incentive mechanism that considered the uncertainty quality of product recycling was designed by the introduction of brand conversion factor. The author made an optimal analysis of the incentive mechanism. Moreover, the influence of different parameters, such as quality and brand to the fixed reward and the unit incentive payment was analyzed and some useful results were obtained.

scholarly journals Warranty Decision Model and Remanufacturing Coordination Mechanism in Closed-Loop Supply Chain: View from a Consumer Behavior Perspective

2018 ◽  
Vol 10 (12) ◽  
pp. 4738 ◽  
Author(s):  
Xiaodong Zhu ◽  
Lingfei Yu ◽  
Ji Zhang ◽  
Chenliang Li ◽  
Yizhao Zhao
Keyword(s):  
Supply Chain ◽  
Decision Model ◽  
Closed Loop ◽  
Stackelberg Game ◽  
Coordination Mechanism ◽  
Market Demand ◽  
Supply Chain System ◽  
Closed Loop Supply Chain ◽  
Chain System ◽  
Warranty Service

The remanufacturing warranty strategy has become an effective mechanism for reducing consumer risk and stimulating market demand in closed-loop supply chain management. Based on the characteristics of consumers’ behavior of purchase decisions, this paper studies the warranty decision model of remanufacturing closed-loop supply chain under the Stackelberg game model. The present study discussed and compared the decision variables, including remanufacturing product pricing, extended warranty service pricing, warranty period and supply chain system profit. The research shows that consumers’ decision-making significantly affirms the dual marginalization effect of the supply chain system while significantly affecting the supply chain warranty decision; the improved revenue sharing contract and the two charge contracts respectively coordinates the manufacturer-led and retail-oriented closed-loop supply chain system, which effectively implements the Pareto improvement of the closed-loop supply chain system with warranty services. In the present study, the model is verified and analyzed by numerical simulation.

scholarly journals Emergency Strategies of Closed-Loop Supply Chain with Single Retailer Recycling under Demand Disruptions

2020 ◽  
Vol 2020 ◽  
pp. 1-19
Author(s):  
Jian Cao ◽  
Yuting Yan ◽  
Lingyuan Wang ◽  
Xihui Chen ◽  
Xuemei Zhang ◽  
...  
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Closed Loop ◽  
Wholesale Price ◽  
Normal Operation ◽  
Market Demand ◽  
Closed Loop Supply Chain ◽  
Decentralized Decision Making ◽  
Retail Prices ◽  
Emergency Decision

The uncertainty caused by emergencies will influence the normal operation of the supply chain. Considering demand disruptions, a closed-loop supply chain consisting of one manufacturer and two competing retailers based on decentralized decision-making is considered. In the supply chain, one retailer recovers end-of-life products while the other does not. Analytic results show that, when the disturbance of demand occurs, the manufacturer and retailers adjust the wholesale price and retail prices of products according to the direction of the market demand disruptions. Under demand disruptions, the retailer who participates in recovering can gain more profits, especially in the case of the positive disruption. Theoretic and pragmatic references for the emergency decision-making of closed-loop supply chain enterprises are provided.

Design of Closed Loop Supply Chain Networks

2014 ◽  
Vol 1 (1) ◽  
pp. 43-66 ◽  
Author(s):  
Subramanian Pazhani ◽  
A. Ravi Ravindran
Keyword(s):  
Supply Chain ◽  
Network Design ◽  
Closed Loop ◽  
The United States ◽  
Raw Material ◽  
Mixed Integer ◽  
Closed Loop Supply Chain ◽  
Supply Chain Networks ◽  
Optimal Network Design ◽  
Optimal Network

Given the importance of operating and managing forward and reverse supply chains in an integrated manner, this article considers an integrated four-stage supply chain network with forward and reverse product flows. We consider a closed loop supply chain (CLSC) network with primarily commercial returns, which could be potentially recovered by light repair operations or by refurbishing. The annual estimate of commercial returns in the United States is in excess of $100 billion. This paper discusses the optimal design of a CLSC network.A mixed integer linear programming (MILP) model is developed to determine the optimal locations of the facilities and the distribution of flows between facilities in the CLSC to maximize the total profit. The model is illustrated using a realistic example applicable to the electronics industries. Even though recycling and refurbishing add cost, the overall supply chain profit increases due to a reduction in the raw material cost. Sensitivity analysis is carried out to determine the effect of return percentage and varying demands of customers who are willing to buy refurbished products. The analysis show that the total supply chain profit increases with the increase in refurbishing activity. Finally, changes in the network design with respect to the uncertainty in these return parameters are also studied. The results show that the changes in return parameters lead to changes in optimal network design implying the need to explicitly consider the uncertainty in these return parameters.

Sustainable Design of a Multi-Echelon Closed Loop Supply Chain under Uncertainty for Durable Products

2021 ◽  
Vol 13 (19) ◽  
pp. 11126
Author(s):  
Abbas Al-Refaie ◽  
Yasmeen Jarrar ◽  
Natalija Lepkova
Keyword(s):  
Supply Chain ◽  
Stochastic Model ◽  
Environmental Sustainability ◽  
Closed Loop ◽  
Transportation Cost ◽  
Return Rate ◽  
Raw Material ◽  
Mixed Integer ◽  
Closed Loop Supply Chain ◽  
Durable Products

The increased awareness of environmental sustainability has led to increasing attention to closed loop supply chains (CLSC). The main objective of the CLSC is to capture values from end-of-life (EOL) products in a way that ensures a business to be economically and environmentally sustainable. The challenge is the complexity that occurrs due to closing the loop. At the same time, considering stochastic variables will increase the realism of the obtained results as well as the complexity of the model. This study aims to design a CLSC for durable products using a multistage stochastic model in mixed-integer linear programming (MILP) while considering uncertainty in demand, return rate, and return quality. Demand was described by a normal distribution whereas return rate and return quality were represented by a set of discrete possible outcomes with a specific probability. The objective function was to maximize the profit in a multi-period and multi-echelon CLSC. The multistage stochastic model was tested on a real case study at an air-conditioning company. The computational results identified which facilities should be opened in the reversed loop to optimize profit. The results showed that the CLSC resulted in a reduction in purchasing costs by 52%, an annual savings of 831,150 USD, and extra annual revenue of 5459 USD from selling raw material at a material market. However, the transportation cost increased by an additional annual cost of 6457 USD, and the various recovery processes costs were annually about 152,897 USD. By running the model for nine years, the breakeven point will be after three years of establishing the CLSC and after the annual profit increases by 1.92%. In conclusion, the results of this research provide valuable analysis that may support decision-makers in supply chain planning regarding the feasibility of converting the forward chain to closed loop supply chain for durable products.

scholarly journals The System Dynamics Model in Electronic Products Closed-Loop Supply Chain Distribution Network with Three-Way Recovery and the Old-for-New Policy

2016 ◽  
Vol 2016 ◽  
pp. 1-10 ◽  
Author(s):  
Xiao-qing Zhang ◽  
Xi-gang Yuan
Keyword(s):  
Supply Chain ◽  
System Dynamics ◽  
Closed Loop ◽  
Distribution Network ◽  
Bullwhip Effect ◽  
Raw Material ◽  
System Dynamics Model ◽  
Dynamics Model ◽  
Closed Loop Supply Chain ◽  
Electronic Products

With the technological developments and rapid changes in demand pattern, diverse varieties of electronic products are entering into the market with reduced lifecycle which leads to the environmental problems. The awareness of electronic products take-back and recovery has been increasing in electronic products supply chains. In this paper, we build a system dynamics model for electronic products closed-loop supply chain distribution network with the old-for-new policy and three electronic products recovery ways, namely, electronic products remanufacturing, electronic component reuse and remanufacturing, and electronic raw material recovery. In the simulation study, we investigate the significance of various factors including the old-for-new policy, collection and remanufacturing, their interactions and the type of their impact on bullwhip, and profitability through sensitivity analysis. Our results instruct that the old-for-new policy and three electronic products recovery ways can reduce the bullwhip effect in the retailers and the distributors and increases the profitability in the closed-loop supply chain distribution network.

scholarly journals Joint Advertisement and Trade-In Marketing Strategy in Closed-Loop Supply Chain

2020 ◽  
Vol 12 (6) ◽  
pp. 2188 ◽  
Author(s):  
Haitao Chen ◽  
Zhaohui Dong ◽  
Gendao Li ◽  
Hetian Zhao
Keyword(s):  
Supply Chain ◽  
Marketing Strategy ◽  
Closed Loop ◽  
Social Performance ◽  
New Products ◽  
Joint Model ◽  
Partial Replacement ◽  
Market Demand ◽  
Closed Loop Supply Chain ◽  
Key Factor

With environmental problems becoming severe, many firms, including HP, Huawei, and Apple are simultaneously implementing trade-in programs and advertising to stimulate market demand. Offering trade-in service by the manufacturer is a method of price discrimination by providing replacement consumers with a rebate when they purchase new products. With the recycled, used products, the manufacturer can benefit through a strict series—via a remanufacturing process. Although numerous literatures have investigated the pricing strategy and advertising decisions in the closed-loop supply chain (CLSC), to the best of our knowledge, there is little research that analyzes and compares the economic and social performance of these two marketing strategies. To fill this gap, we establish two supply chain models with two periods, namely, an advertisement model and a joint model, while the equilibrium purchasing behavior of the replacement consumers can be characterized under three conditions: (1) all of the replacement consumers purchasing new products (ATA); (2) partial replacement consumers purchasing (PTA); (3) no replacement consumers purchasing (NTA). These three conditions are decided by the numerous relationships of the parameters. Solving the optimal decisions of the manufacturer in both models, the critical value in the joint model is higher in the advertisement model, which indicates that developing the trade-in program can enhance the robustness of the business model. Furthermore, through numerical example, we find that the market demand in the joint model is higher than in the advertisement model, and the cost of marketing strategy in the joint model is lower in the advertisement model, which means that the efficiency of the marketing strategy is higher than the single marketing strategy. As a result, comparing the economic and social performance between the two models, we conclude that the advertisement elasticity of the market demand is the key factor of the manufacturer’s profits and total social welfare.

scholarly journals A Marketing Strategy in a Closed-Loop Supply Chain with Loss-Averse Consumers

2018 ◽  
Vol 2018 ◽  
pp. 1-9 ◽  
Author(s):  
Bi-feng Liao ◽  
Bang-yi Li
Keyword(s):  
Supply Chain ◽  
Demand Uncertainty ◽  
Closed Loop ◽  
Sensitivity Analyses ◽  
Market Demand ◽  
Closed Loop Supply Chain ◽  
Online Store ◽  
Consumer Valuation ◽  
Proposed Model ◽  
Valuation Uncertainty

The importance of remanufacturing system has been extensively investigated in recent years. Taking into account the consumer valuation uncertainty and the demand uncertainty, this paper addresses the issue of closed-loop supply chain with remanufacturing by game theory. We consider two types of consumers in the market: loss-neutral consumers and loss-averse consumers. The loss-neutral consumers are completely rational. The loss-averse consumers, on the other hand, are with losses being more painful than equal-sized gains being pleasant. When multichannel structure can be chosen, the manufacturer has three pricing strategies in direct market: (1) keeping the price high with a small discount, no customers choose the online store; (2) keeping the price high with a moderate discount, only the loss-neutral customers choose the online store; (3) keeping the price low with a big discount, all customers choose the online store. Consumers make up their decisive selections through comparing the price and channel attributes. We introduce utility function for analyzing the market demand and then identify the optimal pricing and channel strategy to maximize the manufacturer’s profit. Finally, the rationality and validities of the proposed model are illustrated by numerical examples, and sensitivity analyses of the parameters are also presented.

scholarly journals Integrated Operational Model of Green Closed-Loop Supply Chain

2021 ◽  
Vol 13 (11) ◽  
pp. 6041
Author(s):  
Chui-Yu Chiu ◽  
Chen-Yang Cheng ◽  
Ting-Ying Wu
Keyword(s):  
Supply Chain ◽  
Closed Loop ◽  
Raw Materials ◽  
Reverse Direction ◽  
Recycling Rate ◽  
Government Subsidy ◽  
Net Income ◽  
Reverse Supply Chain ◽  
Closed Loop Supply Chain

Due to increasing environmental awareness, companies have started embracing the green supply chain concept to reduce waste of resources. Based on this increased awareness, an integrated green closed-loop supply chain has been developed, which integrates the forward supply chain and reverse supply chain. The reverse supply chain follows the same path as the forward supply chain in the reverse direction to recycle used products. Due to the uncertain quality of used products, not all products can be selected for recycling and reproduction, as the reduced yield might decrease the overall net income in the supply chain. The study develops an evaluation model to consider government subsidy, used product recycling rate, and quality of the used products to explore their impacts on the entire system. The results show that when the reproducibility rate of used raw materials decreases, the net income would also decrease accordingly. Furthermore, when government subsidy increases, the net income of the supply chain also increases accordingly. Similarly, when the recycling rate of used products increases, the net income also increases. As government subsidy affects the net income more than the recycling rate of used products, this research concludes that government subsidy is a key factor in the green closed-loop supply chain.

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