IDEAS home Printed from https://ideas.repec.org/a/eee/jomega/v132y2025ics0305048324001968.html
   My bibliography  Save this article

Closed-loop supply chain design considering quantity-dependent price and decentralized local waste management

Author

Listed:
  • Lee, Jun Seop
  • Chung, Byung Do

Abstract

With the increasingly widespread use of household plastic products, environmental pollution caused by plastic waste has emerged as a severe problem. Despite the efforts of academia and government bodies, plastic recycling rates worldwide remain low. Thus, this study aims at establishing a closed-loop supply chain design model for household plastic recycling. We develop a bilevel optimization model to reflect decentralized decision-making between a manufacturer and public sectors and propose a strategy to obtain optimal solutions. The proposed model considers two critical aspects of the problem: decentralized local waste management and quantity-dependent price. Numerical experiments are conducted based on real annual operation data, and various managerial insights are derived from sensitivity analyses. Additionally, we recommend various strategies to mitigate potential social conflicts arising from increasing volumes of plastic waste as well as directions for government policy aimed at enhancing the plastic recycling rate.

Suggested Citation

  • Lee, Jun Seop & Chung, Byung Do, 2025. "Closed-loop supply chain design considering quantity-dependent price and decentralized local waste management," Omega, Elsevier, vol. 132(C).
    • Handle: RePEc:eee:jomega:v:132:y:2025:i:c:s0305048324001968
    DOI: 10.1016/j.omega.2024.103232
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305048324001968
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.omega.2024.103232?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. De Giovanni, Pietro & Zaccour, Georges, 2019. "Optimal quality improvements and pricing strategies with active and passive product returns," Omega, Elsevier, vol. 88(C), pages 248-262.
    2. Marko M. Skoric & Nan Zhang & Juma Kasadha & Chun Hong Tse & Jing Liu, 2022. "Reducing the Use of Disposable Plastics through Public Engagement Campaigns: An Experimental Study of the Effectiveness of Message Appeals, Modalities, and Sources," IJERPH, MDPI, vol. 19(14), pages 1-20, July.
    3. Kwon, Yong Woo & Sheu, Jiuh-Biing & Yoo, Seung Ho, 2022. "Quadratic quantity discount contract under price-dependent demand and consumer returns," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    4. Govindan, Kannan & Kadziński, Miłosz & Ehling, Ronja & Miebs, Grzegorz, 2019. "Selection of a sustainable third-party reverse logistics provider based on the robustness analysis of an outranking graph kernel conducted with ELECTRE I and SMAA," Omega, Elsevier, vol. 85(C), pages 1-15.
    5. Huaige Zhang & Zongjun Wang & Xianpei Hong & Yeming Gong & Qin Zhong, 2022. "Fuzzy closed-loop supply chain models with quality and marketing effort-dependent demand," Post-Print hal-04325621, HAL.
    6. Liu, Huihui & Lei, Ming & Deng, Honghui & Keong Leong, G. & Huang, Tao, 2016. "A dual channel, quality-based price competition model for the WEEE recycling market with government subsidy," Omega, Elsevier, vol. 59(PB), pages 290-302.
    7. Sinha, Ankur & Malo, Pekka & Deb, Kalyanmoy, 2017. "Evolutionary algorithm for bilevel optimization using approximations of the lower level optimal solution mapping," European Journal of Operational Research, Elsevier, vol. 257(2), pages 395-411.
    8. Kim, Yun Geon & Chung, Byung Do, 2024. "Data-driven Wasserstein distributionally robust dual-sourcing inventory model under uncertain demand," Omega, Elsevier, vol. 127(C).
    9. Li, Sijie & Zheng, Bin & Jia, Dongfeng, 2024. "Optimal decisions for hybrid manufacturing and remanufacturing with trade-in program and carbon tax," Omega, Elsevier, vol. 124(C).
    10. Yang, Zaoli & Shang, Wen-Long & Miao, Lin & Gupta, Shivam & Wang, Zhengli, 2024. "Pricing decisions of online and offline dual-channel supply chains considering data resource mining," Omega, Elsevier, vol. 126(C).
    11. Hao Yu & Wei Deng Solvang, 2017. "A multi-objective location-allocation optimization for sustainable management of municipal solid waste," Environment Systems and Decisions, Springer, vol. 37(3), pages 289-308, September.
    12. R. Canan Savaskan & Shantanu Bhattacharya & Luk N. Van Wassenhove, 2004. "Closed-Loop Supply Chain Models with Product Remanufacturing," Management Science, INFORMS, vol. 50(2), pages 239-252, February.
    13. Rogge, Nicky & De Jaeger, Simon, 2013. "Measuring and explaining the cost efficiency of municipal solid waste collection and processing services," Omega, Elsevier, vol. 41(4), pages 653-664.
    14. Seung Ho Yoo & DaeSoo Kim & Myung-Sub Park, 2015. "Pricing and return policy under various supply contracts in a closed-loop supply chain," International Journal of Production Research, Taylor & Francis Journals, vol. 53(1), pages 106-126, January.
    15. Van Engeland, Jens & Beliën, Jeroen & De Boeck, Liesje & De Jaeger, Simon, 2020. "Literature review: Strategic network optimization models in waste reverse supply chains," Omega, Elsevier, vol. 91(C).
    16. Chirantan Mondal & Bibhas C. Giri, 2022. "Retailers’ competition and cooperation in a closed-loop green supply chain under governmental intervention and cap-and-trade policy," Operational Research, Springer, vol. 22(2), pages 859-894, April.
    17. Song, Jinbo & Sun, Yan & Jin, Lulu, 2017. "PESTEL analysis of the development of the waste-to-energy incineration industry in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 80(C), pages 276-289.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. A. K. Gaula & J. K. Jha, 2024. "Pricing strategy with quality improvement in a dual collection channel closed-loop supply chain under return uncertainty," Operational Research, Springer, vol. 24(2), pages 1-40, June.
    2. Pietro De Giovanni & Georges Zaccour, 2022. "A selective survey of game-theoretic models of closed-loop supply chains," Annals of Operations Research, Springer, vol. 314(1), pages 77-116, July.
    3. Hallak, Bassam K. & Nasr, Walid W. & Jaber, Mohamad Y., 2021. "Re-ordering policies for inventory systems with recyclable items and stochastic demand – Outsourcing vs. in-house recycling," Omega, Elsevier, vol. 105(C).
    4. Pietro Giovanni & Georges Zaccour, 2019. "A selective survey of game-theoretic models of closed-loop supply chains," 4OR, Springer, vol. 17(1), pages 1-44, March.
    5. Liu, Shan & Yu, Jiayi Joey & Feng, Tianjun, 2025. "The impact of green innovations on firm’s sustainable operations: Process innovation and recycling innovation," Omega, Elsevier, vol. 130(C).
    6. Assarzadegan, Parisa & Rasti-Barzoki, Morteza, 2020. "A game theoretic approach for pricing under a return policy and a money back guarantee in a closed loop supply chain," International Journal of Production Economics, Elsevier, vol. 222(C).
    7. Bo Wang & Ning Wang, 2022. "Decision Models for a Dual-Recycling Channel Reverse Supply Chain with Consumer Strategic Behavior," Sustainability, MDPI, vol. 14(17), pages 1-18, August.
    8. He, Qidong & Wang, Nengmin & Browning, Tyson R. & Jiang, Bin, 2022. "Competitive collection with convenience-perceived customers," European Journal of Operational Research, Elsevier, vol. 303(1), pages 239-254.
    9. Qiyao Liu & Xiaodong Zhu, 2024. "Incentive strategies for retired power battery closed-loop supply chain considering corporate social responsibility," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(7), pages 19013-19050, July.
    10. Haitao Chen & Zhaohui Dong & Gendao Li, 2020. "Government Reward-Penalty Mechanism in Dual-Channel Closed-Loop Supply Chain," Sustainability, MDPI, vol. 12(20), pages 1-15, October.
    11. Yue Tan & Chunxiang Guo, 2019. "Research on Two-Way Logistics Operation with Uncertain Recycling Quality in Government Multi-Policy Environment," Sustainability, MDPI, vol. 11(3), pages 1-18, February.
    12. Liu, Chang-Yi & Wang, Hui & Tang, Juan & Chang, Ching-Ter & Liu, Zhi, 2021. "Optimal recovery model in a used batteries closed-loop supply chain considering uncertain residual capacity," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 156(C).
    13. Renbang Shan & Li Luo & Baoli Shi, 2023. "The choice of recycling strategies for decision-makers based on government subsidy and service budget," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(2), pages 1441-1472, February.
    14. Maiti, T. & Giri, B.C., 2017. "Two-way product recovery in a closed-loop supply chain with variable markup under price and quality dependent demand," International Journal of Production Economics, Elsevier, vol. 183(PA), pages 259-272.
    15. Ma, Deqing & Hu, Jinsong, 2022. "The optimal combination between blockchain and sales format in an internet platform-based closed-loop supply chain," International Journal of Production Economics, Elsevier, vol. 254(C).
    16. Junfei Ding & Wen Zhang & Xujin Pu, 2025. "Optimal reverse channel for end‐of‐life vehicle closed‐loop supply chains," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 46(1), pages 529-544, January.
    17. Yuhao Zhang & Qian Zhang & Ren Hu & Man Yang, 2025. "Optimal Strategy and Performance for a Closed-Loop Supply Chain with Different Channel Leadership and Cap-and-Trade Regulation," Sustainability, MDPI, vol. 17(3), pages 1-41, January.
    18. Mohammed Alkahtani & Aiman Ziout & Bashir Salah & Moath Alatefi & Abd Elatty E. Abd Elgawad & Ahmed Badwelan & Umar Syarif, 2021. "An Insight into Reverse Logistics with a Focus on Collection Systems," Sustainability, MDPI, vol. 13(2), pages 1-22, January.
    19. Shan Liu & Caiquan Duan & Jinyou Qiao & Yan Sun, 2025. "Manufacturer's cooperative recycling strategies considering the negative externality of unrecycled products: Non‐cooperative, fund‐cooperative, or labour‐cooperative," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 46(1), pages 201-221, January.
    20. Shan Lyu & Yuyu Chen & Lei Wang, 2022. "Optimal Decisions in a Multi-Party Closed-Loop Supply Chain Considering Green Marketing and Carbon Tax Policy," IJERPH, MDPI, vol. 19(15), pages 1-23, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jomega:v:132:y:2025:i:c:s0305048324001968. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/375/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.