We develop two stackleberg models where manufacturers perform remanufacturing operations through either outsourcing or authorization based on. Under both decentralized and centralized decisionmaking models, the paper deeply researches into the difference of supply chain system in economic benefits, environmental protection and social. The importance of remanufacturing system has been extensively investigated in recent years. In supporting environmental sustainability, managing product returns has become a very important and challenging issue. This paper models a dualchannel closedloop supply chain to improve the sustainability of products. Request pdf closedloop supply chain models with product remanufacturing the importance of remanufacturing used products into new ones has been widely recognized in the literature and in practice. We investigate a durable product retailing and recycling problem in a closedloop supply chain consisting of a single manufacturer and two competitive retailers, in which the manufacturer collects used products via retailers from the consumers and has sufficient channel power over the retailers to act as a stackelberg leader. 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. Dual channel closedloop supply chain coordination with a. Retail services and pricing decisions in a closedloop. The current researches about remanufacturing closedloop supply chain use time static models most of the time. The 23rd international conference on production research pricing decision for new and remanufactured product in a closedloop supply chain with separate saleschannel shu san gana,c, i nyoman pujawana, suparnoa, basuki widodob adepartment of industrial engineering, sepuluh nopember institute of technology, keputihsukolilo, surabaya 60111, indonesia. Abstractthis research develops a twoechelon closedloop supply chain productioninventory model consisting of a manufacturer, a remanufacturer and a retailer.
Home browse by title periodicals management science vol. Dynamic closedloop supply chain model with product. Manufacturerremanufacturing vs supplierremanufacturing in a closedloop supply chain successful examples from many industries show that remanufacturing can be both fastergrowing and more profitable than traditional manufacturing ayres et al. Research collection lee kong chian school of business. Closedloop supply chain models with product takeback and hybrid remanufacturing under technology licensing journal of cleaner production, vol. We recommend that you register using the same email address you use to maintain your asce member account.
Many scholars have researched closedloop supply chain management. By r canan savaskan, shantanu bhattacharya and wassenhove ln van. We find that although the traditional manufacturing process accepts incremental improvement, remanufacturing in general requires stepwise innovation. Closedloop supply chain clsc focuses on acquiring the coresproduct returns from consumers, recovering. Consumer environmental awareness and coordination in. Warranty period decision and coordination in closedloop. This paper considers a closed loop supply chain with the manufacturer as the stackelberg leader. The manufacturer faces three different reverse channels, i. The mathematical models for the closed loop supply chain as well as reverse logistics aim to provide optimal solution in terms of network design. Closedloop supply chain web resources closedloop supply chain print resources closedloop supply chain references 4 of up to 20 akcali, e. Research on closed loop supply chain with reference price. Van wassenhove, journalmanagement science, year2004, volume50, pages239252. The retailer faces a constant demand from the customers, which is satisfied by new and remanufactured product received from the manufacturer and the remanufacturer, respectively.
Increasing the sales volume of remanufactured products to stimulate green growth is a key issue in the development of closedloop supply chains. In this paper, we have built a state space dynamic model of a dualchannel closedloop supply chain model with b2b emarket and the reverse logistics, which includes a manufacturer, a distributor. Retailers profit in retailerdriven model 21 figure 4. The importance of remanufacturing used products into new ones has been widely recognized in the literature and in practice. The truth is supply chain management can be traced back all the way to. By exploring these relationships, a better understanding can be gained about the management of the closedloop supply chain and remanufacturing. Closedloop supply chain models with product remanufacturing r.
Closed loop supply chain management and reverse logistics. They obtained the optimal solutions for each collection strategy of the three models, and analyzed the advantages and disadvantages in the. Responding to this trend, researchers in many parts of the world have conducted numerous studies in reverse logistics and reverse. Automakers want to maintain a closedloop system with their parts. The key feature differentiating this paper from the extant literature in clsc is that our model is retailerdriven while the traditional clsc models have been manufacturerdriven. A closedloop supply chain considering carbon reduction, quality improvement effort, and return policy under two remanufacturing scenarios journal of cleaner production, vol. Specifically, we consider a manufacturer who has three options for collecting such products. The economical and environmental benefits of remanufacturing have been widely recognized in literature and practical life. Request pdf closedloop supply chain models with product remanufacturing the importance of remanufacturing used products into new ones has been widely recognized in. Pricing decision for new and remanufactured product in a.
This study addresses the problem of choosing the appropriate closedloop supply chain structure for the collection of used products from customers under. Product reuse economics in closedloop supply chain. Competitive pricing and remanufacturing problem in an. Closedloop supply chain models with product remanufacturing. Despite numerous studies in which the demand is sensitive to selling price, in this paper demand function is considered as a function of both selling price and advertising level. The supply chain in reverse component remanufacturing.
Pricing decision model for short lifecycle product in a. To make rational decisions about the structure of a reverse supply chain, its best to divide the chain into its five key components and analyze options, costs, and benefits for each. Managing the closed loop supply chain process is not an easy task for manufacturers and hence. Closedloop supply chain with remanufacturing petra christian. Building contingency planning for closedloop supply. Management and sale of surplus, as well as returned equipment and machines from the. Dual channel closedloop supply chain coordination with a rewarddriven remanufacturing policy s.
This paper addresses pricing and reverse channel selection decisions in a closedloop supply chain clsc under fuzziness of demand functions parameters. Pdf closed loop supply chain with remanufacturing a literature. Interfaces 3 locationallocation models, and remanufacturing systems are. Retailerdriven closedloop supply chains with product.
Pricing decision is an important task in an effort to gain economic benefit from remanufacturing practices. Effect of new product quality on remanufacturing models in. Johnson 1998 examined the role of purchasing in reverse logistics system and design. The term supply chain management evolved primarily out of logistics along with a number of other disciplines such as goods brokering, insurance, transportation, and ecommerce. Closedloop supply chain management remanufacturing. The real life changes every minute,such as price,and market capacity. Dynamic closedloop supply chain models with product.
Emphasizing the economics of scm, closedloop supply chain management is the design, control, and operation of a system to maximize value creation over the entire life cycle of a. A marketing strategy in a closedloop supply chain with. Canan savaskan northwestern university shantanu bhattacharya. Canan savaskan and shantanu bhattacharya and luk n. There are several studies focused on pricing of remanufactured products, but many of them have not considered the whole supply chain, and also only a very. In this paper, we consider a closedloop supply chain consisting of a manufacturer, a distributor and a third party, who are engaged in producing remanufactured products. The same authors further support that remanufacturing, which is the heart of the recoverable manufacturing system, is able to reduce waste and is both profitable. Manufacturerremanufacturing vs supplierremanufacturing. Tradein strategies in retail channel and dualchannel. The reference price affects the purchase decision of consumers. Meanwhile, many manufacturers nowadays sell products via indirect retailer channels and direct internet channels. Request pdf closedloop supply chain models with product remanufacturing the importance of remanufacturing used products into new ones has been.
Considering the impact of products ecofriendly level on demand, a twostage closedloop supply chain composed by a single manufacturer and a single retailer is constructed. The same authors further support that remanufacturing, which is the heart of. Taking into account the consumer valuation uncertainty and the demand uncertainty, this paper addresses the issue of closedloop supply chain with remanufacturing by game theory. International journal of production economics, 591, 443453. Environmental and social responsibilities have led many manufacturers to used products recovery. The evolution of closedloop supply chain research insead. In this paper, we address the problem of choosing the appropriate reverse channel. In this paper, we address the problem of choosing the appropriate reverse channel structure for the collection of used products from customers. Manufacturer manufacturer manufacturer retailer retailerretailer third party b model m c model r d model 3p manufacturer. Remanufacturing reverse supply chain closed loop supply chain overview of rollsroyce rr plc rr north america rr corporation rr global repair services. The closedloop supply chain related issues related to this paper are mainly product pricing and coordination decision making.
Professor guides research is focused on the development and control of closedloop supply chains, timebased models for commercial product returns, remanufacturing, sustainable operations and producer responsibility legislation. Closedloop twoechelon supply chain with remanufacturing figure 2. Therefore, closedloop supply chains have traditional forward supply chain activities and a set of additional activities required for the reverse supply chain. Accepted by christopher tang, former department editor. Closedloop supply chains clsc focus on taking back products from. In this paper, we consider a closedloop supply chain consisting of a manufacturer, a distributor and a third party, who are engaged in. The model also results in a fact that with the implication of the extended supply chain, a. In supporting environmental sustainability, managing product returns has become a. Considering the quality of new products, the choice of oem original equipment manufacturers and 3prthirdparty remanufacturers on closedloop supply chain remanufacturing model is studied. Closedloop supply chain models with product remanufacturing by. Closedloop supply chain models with product takeback and. The closedloop supply chain management model is an effective way to promote sustainable economic development and environmental protection. A closedloop supply chain problem with retailing and. Importance of closed loop supply chain in the product.
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