Work

A coordination model for closed-loop supply chain systems with a single manufacturer and retailer

Year: 2023

Type: article

Abstract: This paper develops a coordination model for a closed-loop supply chain (CLSC) system consisting of a single manufacturer and retailer where market demand depends on the green technology level, retailer’s selling price, and promotional efforts. The manufacturer manufactures products from raw materials to finished products and adapts them for sale to meet key market demands. Used products from consumers will be returned to the retailer to be processed by remanufacturing under a technology license, and the rest will be returned to the manufacturer for remanufacturing, refurbishing, recycling, or waste disposal. The models are formulated mathematically and constructed under three scenarios – centralized, decentralized, and a Stackelberg game led by the manufacturer. Numerical examples are given to illustrate the results of the developed model. The result suggests that both types of investment can assist the closed-loop supply chain in enhancing its financial and environmental performance. It also suggests that lowering emissions levels through green technology might increase product selling prices, hence increasing sales volume.

Source: Supply Chain Analytics

DOI: 10.1016/j.sca.2023.100051

Authors: Wakhid Ahmad Jauhari, Nadya Syafa Kamila, Pringgo Widyo Laksono

Institution: Sebelas Maret University

Language: English

Topic: Sustainable Supply Chain Management

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Responsible consumption and production, Industry, innovation and infrastructure, Climate action

Open Access status: gold

Estimated APC paid: $2,000