The economical and environmental benefits of remanufacturing have been widely recognized in literature and practical life. Building contingency planning for closedloop supply. Warranty period decision and coordination in closedloop. Closedloop supply chain management remanufacturing. Management and sale of surplus, as well as returned equipment and machines from the. This paper considers a closed loop supply chain with the manufacturer as the 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. Tradein strategies in retail channel and dualchannel. We recommend that you register using the same email address you use to maintain your asce member account. Accepted by christopher tang, former department editor. Many scholars have researched closedloop supply chain management. Specifically, we consider a manufacturer who has three options for collecting such products. Research collection lee kong chian school of business. Meanwhile, many manufacturers nowadays sell products via indirect retailer channels and direct internet channels. The evolution of closedloop supply chain research insead. Manufacturerremanufacturing vs supplierremanufacturing. Increasing the sales volume of remanufactured products to stimulate green growth is a key issue in the development of closedloop supply chains.
The manufacturer faces three different reverse channels, i. 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 joint effect are functions of time,and thus the optimal solution under the static circumstance,is the firms only optimal strategy for a short time. Manufacturer manufacturer manufacturer retailer retailerretailer third party b model m c model r d model 3p manufacturer. Van wassenhove, journalmanagement science, year2004, volume50, pages239252. Closedloop supply chain models with product remanufacturing r. Closedloop supply chain clsc focuses on acquiring the coresproduct returns from consumers, recovering. The truth is supply chain management can be traced back all the way to. This study addresses the problem of choosing the appropriate closedloop supply chain structure for the collection of used products from customers under. Canan savaskan northwestern university shantanu bhattacharya. 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. In supporting environmental sustainability, managing product returns has become a very important and challenging issue.
The importance of remanufacturing system has been extensively investigated in recent years. The closedloop supply chain related issues related to this paper are mainly product pricing and coordination decision making. A closedloop supply chain problem with retailing and. Environmental and social responsibilities have led many manufacturers to used products recovery. We develop two stackleberg models where manufacturers perform remanufacturing operations through either outsourcing or authorization based on. Savaskan, rc, s bhattacharya and ln van wassenhove 2004. 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. Pricing decision model for short lifecycle product in a. Abstractthis research develops a twoechelon closedloop supply chain productioninventory model consisting of a manufacturer, a remanufacturer and a retailer. Closed loop supply chain management and reverse logistics. The importance of remanufacturing used products into new ones has been widely recognized in the literature and in practice.
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. 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 twoechelon supply chain with remanufacturing figure 2. Closedloop supply chain models with product takeback and. The supply chain in reverse component remanufacturing. Dual channel closedloop supply chain coordination with a rewarddriven remanufacturing policy s. Closedloop supply chain models with product remanufacturing. 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.
Responding to this trend, researchers in many parts of the world have conducted numerous studies in reverse logistics and reverse. Closedloop supply chains clsc focus on taking back products from. 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. Importance of closed loop supply chain in the product. Home browse by title periodicals management science vol. Dynamic closedloop supply chain models with product. The current researches about remanufacturing closedloop supply chain use time static models most of the time. International journal of production economics, 591, 443453.
Competitive pricing and remanufacturing problem in an. Kellogg school of management, northwestern university, evanston, illinois 60208. A closedloop supply chain considering carbon reduction, quality improvement effort, and return policy under two remanufacturing scenarios journal of cleaner production, vol. Closedloop supply chain models with product remanufacturing by. Request pdf closedloop supply chain models with product remanufacturing the importance of remanufacturing used products into new ones has been. The closedloop supply chain management model is an effective way to promote sustainable economic development and environmental protection. Closedloop supply chain with remanufacturing petra christian. The critical factors for successful closedloop supply. 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. Interfaces 3 locationallocation models, and remanufacturing systems are. This paper addresses pricing and reverse channel selection decisions in a closedloop supply chain clsc under fuzziness of demand functions parameters. Research on closed loop supply chain with reference price. In supporting environmental sustainability, managing product returns has become a.
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. Remanufacturing reverse supply chain closed loop supply chain overview of rollsroyce rr plc rr north america rr corporation rr global repair services. Therefore, closedloop supply chains have traditional forward supply chain activities and a set of additional activities required for the reverse supply chain. The reference price affects the purchase decision of consumers. Pricing decision is an important task in an effort to gain economic benefit from remanufacturing practices.
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. Consumer environmental awareness and coordination in. The same authors further support that remanufacturing, which is the heart of. 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. An annotated bibliography of models and solution approaches. The closedloop supply chain management model is an important support for the green development concept.
Dynamic closedloop supply chain model with product. Closedloop supply chain models with product takeback and hybrid remanufacturing under technology licensing journal of cleaner production, vol. A marketing strategy in a closedloop supply chain with. Pricing decision for new and remanufactured product in a. The real life changes every minute,such as price,and market capacity. In this paper, we address the problem of choosing the appropriate reverse channel. Dual channel closedloop supply chain coordination with a. Request pdf closedloop supply chain models with product remanufacturing the importance of remanufacturing used products into new ones has been widely recognized in. In this paper, we consider a closedloop supply chain consisting of a manufacturer, a distributor and a third party, who are engaged in. We find that although the traditional manufacturing process accepts incremental improvement, remanufacturing in general requires stepwise innovation. 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. Retailerdriven closedloop supply chains with product. Effect of new product quality on remanufacturing models in.
By r canan savaskan, shantanu bhattacharya and wassenhove ln van. Closedloop supply chain web resources closedloop supply chain print resources closedloop supply chain references 4 of up to 20 akcali, e. By exploring these relationships, a better understanding can be gained about the management of the closedloop supply chain and remanufacturing. Retail services and pricing decisions in a closedloop. 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. The model also results in a fact that with the implication of the extended supply chain, a. The mathematical models for the closed loop supply chain as well as reverse logistics aim to provide optimal solution in terms of network design.
In this paper, we address the problem of choosing the appropriate reverse channel structure for the collection of used products from customers. Johnson 1998 examined the role of purchasing in reverse logistics system and design. 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. Canan savaskan and shantanu bhattacharya and luk n. 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. 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. 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.
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