Choosing reverse channels under collection responsibility sharing in a closed-loop supply chain with re-manufacturing

This paper considers a closed-loop supply chain with re-manufacturing consisting of retailers, manufacturers and third-party logistics service providers; all participating in the product recycling responsibilities. The effectiveness of methods that can be used to share responsibilities amongst these parties is quantified using different reverse channels. First, re-manufacturing models with three different reverse channels for retailer collection, manufacturer collection and third-party collection are developed using collection responsibility sharing. Next, by comparing these models with the case of no collection responsibility sharing, the effectiveness of responsibility sharing is analysed and quantified. The results for the three models support the following conclusions: (i) from the point of view of the retailer, third-party collection is always the worst choice; (ii) the choice between retailer collection and manufacturer collection depends on the cost parameter representing the resources required in performing the reverse collection tasks; (iii) from the point of view the manufacturer, when the value of the cost parameter is small, collection by manufacturer is the best choice; retailer collection will be best for high values of the cost parameter.

[1]  Sobah Abbas Petersen,et al.  Contextually enriched competence model in the field of sustainable manufacturing for simulation style technology enhanced learning environments , 2013, J. Intell. Manuf..

[2]  Luk N. Van Wassenhove,et al.  Reverse Channel Design: The Case of Competing Retailers , 2006, Manag. Sci..

[3]  L. Beril Toktay,et al.  Market Segmentation and Product Technology Selection for Remanufacturable Products , 2005, Manag. Sci..

[4]  V. Daniel R. Guide,et al.  Building contingency planning for closed-loop supply chains with product recovery , 2003 .

[5]  H. Groenevelt,et al.  COMPETITION IN REMANUFACTURING , 2001 .

[6]  Luk N. Van Wassenhove,et al.  The Economics of Remanufacturing Under Limited Component Durability and Finite Product Life Cycles , 2007, Manag. Sci..

[7]  Hark Hwang,et al.  Deterministic inventory model for recycling system , 2006, J. Intell. Manuf..

[8]  L. Beril Toktay,et al.  Cost Allocation in Manufacturing–Remanufacturing Operations , 2011 .

[9]  Tzong-Ru Lee,et al.  Model selection with considering the CO2 emission alone the global supply chain , 2013, J. Intell. Manuf..

[10]  Michael R. Galbreth,et al.  Optimal Acquisition Quantities in Remanufacturing with Condition Uncertainty , 2010 .

[11]  Yingxue Zhao,et al.  Collective Recycling Responsibility in Closed-Loop Fashion Supply Chains with a Third Party: Financial Sharing or Physical Sharing? , 2013 .

[12]  Hark Hwang,et al.  Competition and cooperation in a remanufacturing system with take-back requirement , 2011, J. Intell. Manuf..

[13]  Ravi Subramanian,et al.  Sharing Responsibility for Product Recovery Across the Supply Chain , 2012 .

[14]  Rob A. Zuidwijk,et al.  Optimal Pricing, Ordering, and Return Policies for Consumer Goods , 2009 .

[15]  Ravi Subramanian,et al.  Product Design and Supply Chain Coordination Under Extended Producer Responsibility , 2008 .

[16]  Luk N. Van Wassenhove,et al.  Closed - Loop Supply Chain Models with Product Remanufacturing , 2004, Manag. Sci..

[17]  Katsuhiko Takahashi,et al.  An adaptive pull strategy for remanufacturing systems , 2014, J. Intell. Manuf..

[18]  Manoj Kumar Tiwari,et al.  Production planning optimization for manufacturing and remanufacturing system in stochastic environment , 2013, J. Intell. Manuf..

[19]  Mark Ferguson,et al.  The Value of Quality Grading in Remanufacturing , 2009 .

[20]  Luk N. Van Wassenhove,et al.  Remanufacturing as a Marketing Strategy , 2008, Manag. Sci..

[21]  Otto Rentz,et al.  Modeling reverse logistic tasks within closed-loop supply chains: An example from the automotive industry , 2006, Eur. J. Oper. Res..