The remanufacturing reverse logistics management based on. The importance of behavioral factors in the process of decision making is widely recognized in literature and practice. Pdf strategic alliance in a closedloop supply chain, a. Therefore, closedloop supply chains have traditional forward supply chain activities and a set of additional activities required for the reverse supply chain. It is associated with efforts like managing production residues byproducts. Closedloop supply chains, remanufacturing, reverse lo gistics, and sustainable operations. Information about closedloop supply chain clsc clsc mainly occur due to commercial returns, warranty replacements, recycling and reuse or leased equipment renewals easwaran and uster, 2009. Strategic alliance in a closed loop supply chain, a case of manufacturer and econonprofit organization. Krikke studied the impact of a copier manufacturers supply chain on the total carbon footprint of the product and in the handling of endoflife vehicles. Closedloop supply chain models with product remanufacturing. Pdf closed loop supply chain management and reverse. He found that customers knowledge of a products carbon footprint can. Apple aims for closedloop supply chain supply management.
Apple has pledged to build its iphone from entirely recycled materials. Reverse logistics rl and the closed loop supply chain clsc are integral parts of the holistic waste management process. Pdf reverse logistics and closedloop supply chain of. Sustainable operations and closedloop supply chains kindle edition by souza, gilvan. Closedloop supply chain games with innovationled lean programs and sustainability. Dynamic development and execution of closedloop supply chains. The model also results in a fact that with the implication of the extended supply chain, a. Completing the supply chain loop cognizant 2020 insights executive summary traditionally, businesses have concentrated on improving the forward supply chain for their products e. Optimization of logistics and supply chain systems.
The trend is to establish closedloop supply chains, where previously discarded products circle back into the value chain and minimize waste. The modularity of the computers and dells use of demand management techniques combines with. Pdf closedloop supply chain as an agent of sustainable. Reverse logistics concerns the integration of used and obsolete products back into the supply chain as valuable resources. The reference price affects the purchase decision of consumers. New developments to improve the sustainability of business practices supply chain integration modeling. Based on a closedloop supply chain with the system dynamics method. Based on the new definition, closedloop supply chain management is the design, control, and operation of a system to maximize value creation over the entire life cycle of a product with dynamic recovery of. The study of closedloop supply chain clsc networks is used to maximize the value. A closedloop supply chain network design problem with integrated forward and reverse channel decisions. Closedloop supply chain network equilibrium model with. New developments to improve the sustainability of business practices supply chain integration modeling, optimization and application ferguson, mark e. Closedloop supply chain description the full technique overview is available for free.
Om needs innovation to substantially contribute to the. The concept of the customer order decoupling point codp has been used in many different contexts as an important structural concept for the traditional forward supply chain. However, the term can also be used to refer to corporate takeback programs, where companies that produce a good are also responsible for its disposal. This paper aims to reflect on recent closedloop supply chain clsc practices using a natural resourcebased view nrbv and dynamic capabilities dc perspective. View closed loop supply chain research papers on academia. The manufacturer faces three different reverse channels, i. On an optimal productioninventory plan for a closed loop supply. Closedloop supply chain games with innovationled lean. Journal of the operational research society volume 50, 1999 issue 5. A closedloop supply chain is designed and managed in such a way as to combine both forward and reverse supply chains. A study of the closedloop supply chain coordination on. In its latest sustainability report apple said it was aiming for a closedloop supply chain that would eliminate the need for mining, though it has set no date for achieving this.
Reverse logistics quantitative models for closedloop. The aim of this paper is to examine the influence of collectors multiple fairness concerns on pricing decisions in a closedloop supply chain clsc, which consists of one manufacturer, one retailer, and two collectors. Clsc generally incorporates activities observed in both the traditional forward supply chain and in the reverse supply chain guide et al. An integrated closedloop supply chain configuration model and supplier. A forward supply chain is all processes involved in the creation of new products from raw materials through to their distribution to consumers. In the management of the closedloop supply chain, the recycling of waste products and decisionmaking on pricing often directly affect the supply and demand of products and the operation. The integration of forward and reverse supply chains is termed as closed loop supply chains clsc. There have been concerns on relatively rapid growth in population and increased quality of life despite. The recycling of waste products can sharply save manufacturing cost and improve the economic efficiency and corporatereputation. Pdf specifics of closed loop supply chain management in the. Download book pdf quantitative approaches to distribution logistics and supply chain. Dynamic development and execution of closedloop supply. A closed loop supply chain and reusing products thus becomes more relevant.
Pricing decisions in closedloop supply chains with peer. This paper argues that one of the ways that developing the lowcarbon logistics is to develop the recycling of waste products remanufacturing supply chain. The company closing the supply chain may be the original equipment manuf turer oem, a distribution partner or a third party not involved in the f ward distribution. Lecture notes in economics and mathematical systems, vol 519. An introduction to creating a closedloop supply chain. The structure of the most complex process aimed at the management of logistics flows can be designed according to two methods namely open.
Closedloop supply chains clsc are supply chain networks that include the returns processes and the manufacturer has the intent of capturing additional value and further integrating all supplychain activities guide et al. Wielandwallenburg, 2011 supply chain management scm is the management of a network of interconnected businesses involved in the provision of product and service packages required by the end customers in a supply chain. Pdf the concept of closedloop supply chain management is a very popular direction of research and companies activities. The use of supply chain partnerships allow for vendor managed inventory. Download it once and read it on your kindle device, pc, phones or tablets. A closedloop logistics model for remanufacturing citations. This paper considers a closed loop supply chain with the manufacturer as the stackelberg leader.
Smart management of closedloop supply chains means profitable recovery of value from these items products, functional components, materials or packaging. One of the important endoflife eol products considered in the rlclsc is waste electrical and electronic equipment. Retailerdriven closedloop supply chains with product. The codp is rarely explicitly applied in reverse supply chain management and the purpose of this paper is to show that the codp can be an important corner stone of a framework for analysis of the closed. How a closed loop supply chain can help reduce product. A closedloop supply chain essentially combines the traditional supply chain forward logistics with reverse logistics, considering the item after its served its original purpose. Research on closed loop supply chain with reference price. True to its organizational capabilities, company a quotes on a directtosite solution, proposing that one consignment be shipped to each investigator site each month. Dells supply chain brings closedloop recycling advantage. Use features like bookmarks, note taking and highlighting while reading sustainable operations and closedloop supply chains. Elements including low carbon and environmental protection must be included in the entire logistics and supply chain to realize a.
Closedloop supply chain is a supply chain system that coexist manufacturing and remanufacturing, in this system, remanufacturing reverse logistics has been. Economic, marketing, and legislative drivers increasingly are leading companies to take back and recover their products after use. Materials are mined, manufactured as products and often end up in. Based on game theory, we discuss the reference price effect on the performances. The term who refers to the players involved in the process and their different responsibilities in the management of the flows along a supply chain. System dynamics research of remanufacturing closedloop supply. Traditional supply chains are linear, said the report. Closed loop supply chains can help companies reduce waste and maximize resources, which is why a growing number of businesses are combining traditional supply chains forward logistics with reverse logistics, business2community reports reverse logistics requires the manufacturer to encourage the products return either for repair or resale, or, if those scenarios arent viable, then.
Article information, pdf download for system dynamics research of. The need to understand the reverse logistics and closed loop supply chain. It also has a great effect on the environment and resources protection. An integrated closedloop supply chain configuration. Supply risk sharing in a closedloop supply chain international journal of production economics, vol. Regarding the recent definition of a closedloop supply chain, we should mention the elevated description of clsc based on current requirements found in guide and van wassenhove 2009. Supply chain reverse logistics demand rate central intelligence agency supply chain system. Smart management of closedloop supply chains means profitable recovery of. The popularity of these fields of research has led to the evolution of a vast number of publications in the literature. A multiechelon, multiperiod, multiproduct system december 2016 in book. The major difference between closedloop supply chains and traditional forward supply chains is for a forward supply chain the customer is at the end of the processes, and for a closedloop supply chain there is value to be recovered from the customer or enduser.
Closed loop supply chain management and reverse logistics. Closedloop supply chain ideally, a zerowaste supply chain that completely reuses, recycles, or composts all materials. A closed loop supply chain essentially combines the traditional supply chain forward logistics with reverse logistics, considering the item after its served its original purpose. A closed loop supply chain clsc refers to a bidirectional. In this paper, a mathematical programming model is presented for integrated problem of closed loop. Managing closedloop supply chains simme douwe flapper. Closed loops depict supply chains for which original equipement manufacturer reintegrate their returned products. In this paper, we study a closedloop supply chain clsc consisting of a manufacturer and a retailer of a single product with numerous end product customers. Apple makes closed loop recycling pledge financial times. Business value from closedloop supply chains citeseerx. Sustainability has recently become an important issue which received growing attentions from government, society, industries as well as academia. Introduction to management of reverse logistics and closed loop. Closed loop partners is a new york based investment firm comprised of venture capital, growth equity, private equity, project finance and an innovation center focused on building the circular economy.
The closedloop supply chain network with competition, distribution. Various businesses have begun implementing sustainability initiatives as a way to reduce waste, but also gain profit from both the forward and reverse supply chains, business 2 community wrote last week. Closed loop supply chain management and reverse logistics a literature 157 3. The supply chain processes fashion design and manufacturing, laundry, logistics and disposal, the operations management issues inventory management, closedloop logistics, humanclothing matching, booking system and the rental pricing and the sustainability promotion aspects customization, responsive system, culture and policy aspects are. One day wed like to be able to build new products with just recycled materials, including. Mgt published cases on closedloop supply show that information systems in all cases are an integral part of.
Middle and longterm inventoryproduction plans have deserved interest of managers of supply chains since the 80s. Supply chain management supply chain management managing complex and dynamic supply and demand networks. Elements including low carbon and environmental protection must be included in the entire logistics and supply chain to realize a complete green and low carbon. Request pdf closedloop supply chain models with product remanufacturing the importance of remanufacturing used products into new ones has been widely recognized in.
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