IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v207y2019icp19-33.html
   My bibliography  Save this article

Investigating structure of a two-echelon closed-loop supply chain using social work donation as a Corporate Social Responsibility practice

Author

Listed:
  • Modak, Nikunja Mohan
  • Kazemi, Nima
  • Cárdenas-Barrón, Leopoldo Eduardo

Abstract

Besides profit, which might be the objective of any business, firms have recently shown more interests toward demonstrating Corporate Social Responsibility (CSR). As many firms are practicing CSR, they are increasingly realizing the benefits of adopting CSR as one of their main operations. Inspired by the increasing CSR practices of business firms, this study takes a practical step in implementation of a CSR activity. It develops a socially responsible closed-loop supply chain (CLSC) model that takes into account donation, as a CSR activity, and recycling of the used products for environmental sustainability. Considering the effects of selling price and social work donation (SWD) on demand, it develops optimal closed form solutions for three decentralized and a centralized channel structures. A comparative analyses is presented to find the best socially responsible environmental friendly decentralized channel structure. Furthermore, the channel coordination problem between the manufacturer and the retailer is investigated using two part tariff contract. The numerical analysis showed that among the three decentralized models, the model in which the retailer promotes and collects the used products from customers generates the best channel performance.

Suggested Citation

  • Modak, Nikunja Mohan & Kazemi, Nima & Cárdenas-Barrón, Leopoldo Eduardo, 2019. "Investigating structure of a two-echelon closed-loop supply chain using social work donation as a Corporate Social Responsibility practice," International Journal of Production Economics, Elsevier, vol. 207(C), pages 19-33.
    • Handle: RePEc:eee:proeco:v:207:y:2019:i:c:p:19-33
    DOI: 10.1016/j.ijpe.2018.10.009
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527318304225
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2018.10.009?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. Kim, Taebok & Glock, Christoph H. & Kwon, Yongjang, 2014. "A closed-loop supply chain for deteriorating products under stochastic container return times," Omega, Elsevier, vol. 43(C), pages 30-40.
    2. Hsueh, Che-Fu, 2014. "Improving corporate social responsibility in a supply chain through a new revenue sharing contract," International Journal of Production Economics, Elsevier, vol. 151(C), pages 214-222.
    3. Bazan, Ehab & Jaber, Mohamad Y. & Zanoni, Simone, 2017. "Carbon emissions and energy effects on a two-level manufacturer-retailer closed-loop supply chain model with remanufacturing subject to different coordination mechanisms," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 394-408.
    4. Chuang, Chia-Hung & Wang, Charles X. & Zhao, Yabing, 2014. "Closed-loop supply chain models for a high-tech product under alternative reverse channel and collection cost structures," International Journal of Production Economics, Elsevier, vol. 156(C), pages 108-123.
    5. Kim, T. & Glock, C. H. & Kwon, Y., 2014. "A closed-loop supply chain for deteriorating products under stochastic container return times," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 62024, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    6. Ni, Debing & Li, Kevin W. & Tang, Xiaowo, 2010. "Social responsibility allocation in two-echelon supply chains: Insights from wholesale price contracts," European Journal of Operational Research, Elsevier, vol. 207(3), pages 1269-1279, December.
    7. Nematollahi, Mohammadreza & Hosseini-Motlagh, Seyyed-Mahdi & Heydari, Jafar, 2017. "Coordination of social responsibility and order quantity in a two-echelon supply chain: A collaborative decision-making perspective," International Journal of Production Economics, Elsevier, vol. 184(C), pages 107-121.
    8. Xie, JiaPing & Liang, Ling & Liu, LuHao & Ieromonachou, Petros, 2017. "Coordination contracts of dual-channel with cooperation advertising in closed-loop supply chains," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 528-538.
    9. Xu, Guangye & Dan, Bin & Zhang, Xumei & Liu, Can, 2014. "Coordinating a dual-channel supply chain with risk-averse under a two-way revenue sharing contract," International Journal of Production Economics, Elsevier, vol. 147(PA), pages 171-179.
    10. Kumar Jena, Sarat & Sarmah, S.P, 2014. "Price competition and co-operation in a duopoly closed-loop supply chain," International Journal of Production Economics, Elsevier, vol. 156(C), pages 346-360.
    11. Crifo, Patricia & Diaye, Marc-Arthur & Pekovic, Sanja, 2016. "CSR related management practices and firm performance: An empirical analysis of the quantity–quality trade-off on French data," International Journal of Production Economics, Elsevier, vol. 171(P3), pages 405-416.
    12. Wang, David Han-Min & Chen, Pei-Hua & Yu, Tiffany Hui-Kuang & Hsiao, Chih-Yi, 2015. "The effects of corporate social responsibility on brand equity and firm performance," Journal of Business Research, Elsevier, vol. 68(11), pages 2232-2236.
    13. Andy A. Tsay, 1999. "The Quantity Flexibility Contract and Supplier-Customer Incentives," Management Science, INFORMS, vol. 45(10), pages 1339-1358, October.
    14. Carter, Craig R. & Jennings, Marianne M., 2002. "Social responsibility and supply chain relationships," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 38(1), pages 37-52, January.
    15. Lei Yang & Minghui Xu & Gang Yu & Hanqin Zhang, 2009. "SUPPLY CHAIN COORDINATION WITH CVaR CRITERION," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 26(01), pages 135-160.
    16. Barcos, Lucía & Barroso, Alicia & Surroca, Jordi & Tribó, Josep A., 2013. "Corporate social responsibility and inventory policy," International Journal of Production Economics, Elsevier, vol. 143(2), pages 580-588.
    17. Panda, Shibaji & Modak, Nikunja Mohan & Cárdenas-Barrón, Leopoldo Eduardo, 2017. "Coordinating a socially responsible closed-loop supply chain with product recycling," International Journal of Production Economics, Elsevier, vol. 188(C), pages 11-21.
    18. Patricia Crifo & Marc-Arthur Diaye & Sanja Pekovic, 2016. "CSR related management practices and Firm Performance," Post-Print hal-01278585, HAL.
    19. Ma, Peng & Wang, Haiyan & Shang, Jennifer, 2013. "Contract design for two-stage supply chain coordination: Integrating manufacturer-quality and retailer-marketing efforts," International Journal of Production Economics, Elsevier, vol. 146(2), pages 745-755.
    20. Chen, Jing & Zhang, Hui & Sun, Ying, 2012. "Implementing coordination contracts in a manufacturer Stackelberg dual-channel supply chain," Omega, Elsevier, vol. 40(5), pages 571-583.
    21. Modak, Nikunja Mohan & Kelle, Peter, 2019. "Managing a dual-channel supply chain under price and delivery-time dependent stochastic demand," European Journal of Operational Research, Elsevier, vol. 272(1), pages 147-161.
    22. Xiaohua Han & Haiyan Wu & Qianxia Yang & Jennifer Shang, 2017. "Collection channel and production decisions in a closed-loop supply chain with remanufacturing cost disruption," International Journal of Production Research, Taylor & Francis Journals, vol. 55(4), pages 1147-1167, February.
    23. Govindan, Kannan & Soleimani, Hamed & Kannan, Devika, 2015. "Reverse logistics and closed-loop supply chain: A comprehensive review to explore the future," European Journal of Operational Research, Elsevier, vol. 240(3), pages 603-626.
    24. Choi, Tsan-Ming & Li, Yongjian & Xu, Lei, 2013. "Channel leadership, performance and coordination in closed loop supply chains," International Journal of Production Economics, Elsevier, vol. 146(1), pages 371-380.
    25. K. Sridhar Moorthy, 1987. "Comment—Managing Channel Profits: Comment," Marketing Science, INFORMS, vol. 6(4), pages 375-379.
    26. 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.
    27. Zhou, Yong-Wu & Wang, Sheng-Dong, 2009. "Manufacturer-buyer coordination for newsvendor-type-products with two ordering opportunities and partial backorders," European Journal of Operational Research, Elsevier, vol. 198(3), pages 958-974, November.
    28. Modak, Nikunja Mohan & Panda, Shibaji & Sana, Shib Sankar, 2016. "Three-echelon supply chain coordination considering duopolistic retailers with perfect quality products," International Journal of Production Economics, Elsevier, vol. 182(C), pages 564-578.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Liu, Yong & Liu, Zhi-yang & Ren, Wen-wen & Lin Forrest, Jeffrey Yi, 2020. "A coordination mechanism through relational contract in a two-echelon supply chain," Journal of Retailing and Consumer Services, Elsevier, vol. 56(C).
    2. Lin Zhao & Zongyu Mu, 2021. "Channel Strategies for the Two-Period Closed-Loop Supply Chain with E-Commerce," Mathematics, MDPI, vol. 9(11), pages 1-33, June.
    3. Chen, Lin & Wen, Fenghua & Zhang, Yun & Miao, Xiao, 2023. "Oil supply expectations and corporate social responsibility," International Review of Financial Analysis, Elsevier, vol. 87(C).
    4. Bo Yan & Yanping Liu & Si Liu, 2023. "Corporate social responsibility in long‐term supply chain management," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(1), pages 17-27, January.
    5. Su, Rung-Hung & Weng, Ming-Wei & Yang, Chih-Te, 2021. "Effects of corporate social responsibility activities in a two-stage assembly production system with multiple components and imperfect processes," European Journal of Operational Research, Elsevier, vol. 293(2), pages 469-480.
    6. Zhou, Yongyi & Zhang, Yulin & Wahab, M.I.M. & Goh, Mark, 2023. "Channel leadership and performance for a closed-loop supply chain considering competition," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 175(C).
    7. Dominguez, Roberto & Cannella, Salvatore & Framinan, Jose M., 2021. "Remanufacturing configuration in complex supply chains," Omega, Elsevier, vol. 101(C).
    8. Guo, Yuhan & Yu, Junyu & Allaoui, Hamid & Choudhary, Alok, 2022. "Lateral collaboration with cost-sharing in sustainable supply chain optimisation: A combinatorial framework," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 157(C).
    9. Lili Dai & Tong Shu & Shou Chen & Shouyang Wang & Kin Keung Lai, 2020. "CSR Remanufacturing Supply Chains under WTP Differentiation," Sustainability, MDPI, vol. 12(6), pages 1-19, March.
    10. Huaixi Song & Quanxi Li & Kailing Liu & Yi Li, 2022. "The Recycling Strategy of Closed-Loop Supply Chain Considering CSR under the Government’s Reward–Penalty Policy," Sustainability, MDPI, vol. 14(21), pages 1-16, October.
    11. Liping Song & Yingluo Yan & Fengmin Yao, 2020. "Closed-Loop Supply Chain Models Considering Government Subsidy and Corporate Social Responsibility Investment," Sustainability, MDPI, vol. 12(5), pages 1-27, March.
    12. Chirantan Mondal & Bibhas C. Giri & Sanjib Biswas, 2022. "Integrating Corporate Social Responsibility in a closed-loop supply chain under government subsidy and used products collection strategies," Flexible Services and Manufacturing Journal, Springer, vol. 34(1), pages 65-100, March.
    13. Chokri Aloui & Khaïreddine Jebsi, 2022. "Does corporate social responsibility solve the chicken‐and‐egg problem for a two‐sided platform?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(7), pages 3235-3256, October.
    14. Kumar, Patanjal & Baraiya, Rajendra & Das, Debashree & Jakhar, Suresh Kumar & Xu, Lei & Mangla, Sachin Kumar, 2021. "Social responsibility and cost-learning in dyadic supply chain coordination," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 156(C).
    15. Qi Wang & Kebing Chen & Shengbin Wang & Xiaogang Cao, 2022. "Optimal decisions in a closed-loop supply chain: fairness concerns, corporate social responsibility and information value," Annals of Operations Research, Springer, vol. 309(1), pages 277-304, February.
    16. Dapeng Yang & Daqing Wu & Luyan Shi, 2019. "Distribution-Free Stochastic Closed-Loop Supply Chain Design Problem with Financial Management," Sustainability, MDPI, vol. 11(5), pages 1-23, February.
    17. Neda Dabaghian & Reza Tavakkoli-Moghaddam & Ata Allah Taleizadeh & Mohammad Sadegh Moshtagh, 2022. "Channel coordination and profit distribution in a three-echelon supply chain considering social responsibility and product returns," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(3), pages 3165-3197, March.
    18. Johari, Maryam & Hosseini-Motlagh, Seyyed-Mahdi, 2022. "Evolutionary behaviors regarding pricing and payment-convenience strategies with uncertain risk," European Journal of Operational Research, Elsevier, vol. 297(2), pages 600-614.
    19. Raj, Alok & Modak, Nikunja Mohan & Kelle, Peter & Singh, Bharati, 2021. "Analysis of a dyadic sustainable supply chain under asymmetric information," European Journal of Operational Research, Elsevier, vol. 289(2), pages 582-594.
    20. Huijin Cheng & Hao Ding, 2020. "Incentive Decision for Supply Chain with Corporate Social Responsibility and Lag Effect," Sustainability, MDPI, vol. 12(7), pages 1-19, March.
    21. Zichun Deng & Mohd Rizaimy Shaharudin & Ming-Lang Tseng, 2023. "Decision-Making in a Closed-Loop Supply Chain under Fairness Concerns and Optimal Subsidies," Sustainability, MDPI, vol. 15(9), pages 1-31, April.
    22. Victoria Pistikou & Floros Flouros & Georgios A. Deirmentzoglou & Konstantina K. Agoraki, 2023. "Sustainability Reporting: Examining the Community Impact of the S&P500 Companies," Sustainability, MDPI, vol. 15(18), pages 1-25, September.
    23. Syed Asif Raza, 2020. "Price Differentiation and Inventory Decisions in a Socially Responsible Dual-Channel Supply Chain with Partial Information Stochastic Demand and Cannibalization," Sustainability, MDPI, vol. 12(22), pages 1-42, November.
    24. Jianteng Xu & Qingguo Bai & Qian Luo, 2023. "Energy conservation strategy and coordination of a closed-loop supply chain with risk-averse members under carbon tax regulation," Operational Research, Springer, vol. 23(3), pages 1-39, September.
    25. Caiquan Duan & Fengmin Yao & Zhongqiu Li & Hui Yu, 2022. "Multi‐period closed‐loop supply chain network equilibrium considering CSR investment and sharing mechanism," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(5), pages 1579-1595, July.

    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. Kumar, Patanjal & Baraiya, Rajendra & Das, Debashree & Jakhar, Suresh Kumar & Xu, Lei & Mangla, Sachin Kumar, 2021. "Social responsibility and cost-learning in dyadic supply chain coordination," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 156(C).
    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. Feng, Lipan & Govindan, Kannan & Li, Chunfa, 2017. "Strategic planning: Design and coordination for dual-recycling channel reverse supply chain considering consumer behavior," European Journal of Operational Research, Elsevier, vol. 260(2), pages 601-612.
    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. Liping Song & Yingluo Yan & Fengmin Yao, 2020. "Closed-Loop Supply Chain Models Considering Government Subsidy and Corporate Social Responsibility Investment," Sustainability, MDPI, vol. 12(5), pages 1-27, March.
    6. Ehsan Shekarian & Simme Douwe Flapper, 2021. "Analyzing the Structure of Closed-Loop Supply Chains: A Game Theory Perspective," Sustainability, MDPI, vol. 13(3), pages 1-32, January.
    7. Matsui, Kenji, 2023. "Dual-recycling channel reverse supply chain design of recycling platforms under acquisition price competition," International Journal of Production Economics, Elsevier, vol. 259(C).
    8. Neda Dabaghian & Reza Tavakkoli-Moghaddam & Ata Allah Taleizadeh & Mohammad Sadegh Moshtagh, 2022. "Channel coordination and profit distribution in a three-echelon supply chain considering social responsibility and product returns," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(3), pages 3165-3197, March.
    9. Panda, Shibaji & Modak, Nikunja Mohan & Cárdenas-Barrón, Leopoldo Eduardo, 2017. "Coordinating a socially responsible closed-loop supply chain with product recycling," International Journal of Production Economics, Elsevier, vol. 188(C), pages 11-21.
    10. 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.
    11. 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.
    12. Matsui, Kenji, 2022. "Optimal timing of acquisition price announcement for used products in a dual-recycling channel reverse supply chain," European Journal of Operational Research, Elsevier, vol. 300(2), pages 615-632.
    13. Xia Zhao & Ning Li & Liang Song, 2019. "Coordination of a Socially Responsible Two-Stage Supply Chain Under Random Demand," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 36(05), pages 1-27, October.
    14. Yong Liu & Bing-ting Quan & Jiao Li & Jeffrey Yi-Lin Forrest, 2018. "A Supply Chain Coordination Mechanism with Cost Sharing of Corporate Social Responsibility," Sustainability, MDPI, vol. 10(4), pages 1-25, April.
    15. Tong Shu & Qian Liu & Shou Chen & Shouyang Wang & Kin Keung Lai, 2018. "Pricing Decisions of CSR Closed-Loop Supply Chains with Carbon Emission Constraints," Sustainability, MDPI, vol. 10(12), pages 1-25, November.
    16. Qi Wang & Kebing Chen & Shengbin Wang & Xiaogang Cao, 2022. "Optimal decisions in a closed-loop supply chain: fairness concerns, corporate social responsibility and information value," Annals of Operations Research, Springer, vol. 309(1), pages 277-304, February.
    17. Hosseini-Motlagh, Seyyed-Mahdi & Govindan, Kannan & Nematollahi, Mohammadreza & Jokar, Abbas, 2019. "An adjustable bi-level wholesale price contract for coordinating a supply chain under scenario-based stochastic demand," International Journal of Production Economics, Elsevier, vol. 214(C), pages 175-195.
    18. Raza, Syed Asif & Govindaluri, Srikrishna Madhumohan, 2019. "Pricing strategies in a dual-channel green supply chain with cannibalization and risk aversion," Operations Research Perspectives, Elsevier, vol. 6(C).
    19. Lili Dai & Tong Shu & Shou Chen & Shouyang Wang & Kin Keung Lai, 2020. "CSR Remanufacturing Supply Chains under WTP Differentiation," Sustainability, MDPI, vol. 12(6), pages 1-19, March.
    20. He, Yuanjie, 2017. "Supply risk sharing in a closed-loop supply chain," International Journal of Production Economics, Elsevier, vol. 183(PA), pages 39-52.

    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:proeco:v:207:y:2019:i:c:p:19-33. 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/locate/ijpe .

    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.