IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Closed-loop supply chain configuration for new and reconditioned products: An integrated optimization model

Listed author(s):
  • Gaur, Jighyasu
  • Amini, Mehdi
  • Rao, A.K.
Registered author(s):

    Closed-Loop Supply Chain Management (CLSCM) is considered as a strategic response to the call for corporate sustainability while further expanding the scope of value creation to include product reconstruction. The Closed-Loop Supply Chain (CLSC) performance is directly related to the CLSC network design. The CLSC network design, with long-term and strategic connotations, involves selection of an integrated network of partner organizations to be engaged on one hand in the forward supply chain processes relevant to families of existing and new products and also involved in reverse supply chain activities relevant to reconstruction of the returned products. At the tactical level, Closed-Loop Supply Chain Configuration (CLSCC) attempts to address issues pertinent to launch of a new product and its reconstruction. The CLSC network design is well studied in the current literature, but addressing the CLSCC is neglected. To study the CLSCC problem we: (a) develop an integrated optimization model for problem; (b) present a real-world case study of a battery manufacturer; (c) based on the case study, we conduct a comprehensive set of computational experiments followed by a series of what-if analyses to compare profitability of the Forward Supply Chain Configuration (FSCC) versus the CLSCC; and (c) discuss the key observations and managerial implications drawn from the computational experiments, applicable to other real-world instances. The significant outcomes of the study suggest that: (i) performance of the firm׳s base case integrated CLSCC model is significantly better than the current supply chain model (ii) the sales-price ratio of new battery is found to be negatively related with the maximum acquiring price of used batteries; (iii) combination of sales price ratios of new and reconditioned batteries determines the total net profit for a given return rate. Finally, important managerial insights and scope for future research are discussed.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by Elsevier in its journal Omega.

    Volume (Year): 66 (2017)
    Issue (Month): PB ()
    Pages: 212-223

    in new window

    Handle: RePEc:eee:jomega:v:66:y:2017:i:pb:p:212-223
    DOI: 10.1016/
    Contact details of provider: Web page:

    Order Information: Postal:

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    in new window

    1. Srivastava, Samir K., 2008. "Network design for reverse logistics," Omega, Elsevier, vol. 36(4), pages 535-548, August.
    2. Eskandarpour, Majid & Dejax, Pierre & Miemczyk, Joe & Péton, Olivier, 2015. "Sustainable supply chain network design: An optimization-oriented review," Omega, Elsevier, vol. 54(C), pages 11-32.
    3. Ruiz-Benítez, Rocío & Ketzenberg, Michael & van der Laan, Erwin A., 2014. "Managing consumer returns in high clockspeed industries," Omega, Elsevier, vol. 43(C), pages 54-63.
    4. Salema, Maria Isabel Gomes & Barbosa-Povoa, Ana Paula & Novais, Augusto Q., 2010. "Simultaneous design and planning of supply chains with reverse flows: A generic modelling framework," European Journal of Operational Research, Elsevier, vol. 203(2), pages 336-349, June.
    5. Kristin Sahyouni & R. Canan Savaskan & Mark S. Daskin, 2007. "A Facility Location Model for Bidirectional Flows," Transportation Science, INFORMS, vol. 41(4), pages 484-499, November.
    6. Francas, David & Minner, Stefan, 2009. "Manufacturing network configuration in supply chains with product recovery," Omega, Elsevier, vol. 37(4), pages 757-769, August.
    7. Qiang, Qiang & Ke, Ke & Anderson, Trisha & Dong, June, 2013. "The closed-loop supply chain network with competition, distribution channel investment, and uncertainties," Omega, Elsevier, vol. 41(2), pages 186-194.
    8. Amini, Mehdi & Li, Haitao, 2011. "Supply chain configuration for diffusion of new products: An integrated optimization approach," Omega, Elsevier, vol. 39(3), pages 313-322, June.
    9. Frank M. Bass, 1969. "A New Product Growth for Model Consumer Durables," Management Science, INFORMS, vol. 15(5), pages 215-227, January.
    10. Guide, V. Daniel R. & Kraus, Mark E. & Srivastava, Rajesh, 1997. "Scheduling policies for remanufacturing," International Journal of Production Economics, Elsevier, vol. 48(2), pages 187-204, January.
    11. Zu-Jun, Ma & Zhang, Nian & Dai, Ying & Hu, Shu, 2016. "Managing channel profits of different cooperative models in closed-loop supply chains," Omega, Elsevier, vol. 59(PB), pages 251-262.
    12. Özceylan, Eren & Paksoy, Turan & Bektaş, Tolga, 2014. "Modeling and optimizing the integrated problem of closed-loop supply chain network design and disassembly line balancing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 61(C), pages 142-164.
    13. John Hauser & Gerard J. Tellis & Abbie Griffin, 2006. "Research on Innovation: A Review and Agenda for," Marketing Science, INFORMS, vol. 25(6), pages 687-717, 11-12.
    14. Mitra, Subrata, 2007. "Revenue management for remanufactured products," Omega, Elsevier, vol. 35(5), pages 553-562, October.
    15. Ferrer, Geraldo, 2001. "On the widget remanufacturing operation," European Journal of Operational Research, Elsevier, vol. 135(2), pages 373-393, December.
    16. Robotis, Andreas & Bhattacharya, Shantanu & Van Wassenhove, Luk N., 2005. "The effect of remanufacturing on procurement decisions for resellers in secondary markets," European Journal of Operational Research, Elsevier, vol. 163(3), pages 688-705, June.
    17. Östlin, Johan & Sundin, Erik & Björkman, Mats, 2008. "Importance of closed-loop supply chain relationships for product remanufacturing," International Journal of Production Economics, Elsevier, vol. 115(2), pages 336-348, October.
    18. Stephen C. Graves & Sean P. Willems, 2005. "Optimizing the Supply Chain Configuration for New Products," Management Science, INFORMS, vol. 51(8), pages 1165-1180, August.
    19. Jayaraman, Vaidyanathan & Patterson, Raymond A. & Rolland, Erik, 2003. "The design of reverse distribution networks: Models and solution procedures," European Journal of Operational Research, Elsevier, vol. 150(1), pages 128-149, October.
    20. 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.
    21. Li, Suhong & Ragu-Nathan, Bhanu & Ragu-Nathan, T.S. & Subba Rao, S., 2006. "The impact of supply chain management practices on competitive advantage and organizational performance," Omega, Elsevier, vol. 34(2), pages 107-124, April.
    22. Mitra, Subrata, 2016. "Models to explore remanufacturing as a competitive strategy under duopoly," Omega, Elsevier, vol. 59(PB), pages 215-227.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:eee:jomega:v:66:y:2017:i:pb:p:212-223. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)

    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 references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.