Recycling design and operations in various supply chain structures

This study investigates the optimal joint decisions regarding recycling design and operations and, thus, differs from previous studies that have considered these two important decisions separately. Following the recycling and outsourcing practices of many supply chains, we introduce five supply chain models that may be integrated or decentralized, with or without recycling. Through analytical and numerical investigations, we find that the decision on recyclability during the design phase impacts the overall supply chain decision and operations. Recycling can offer a valuable chance to improve both environmental and overall profit performance. However, recycling does not always lead to profit enhancement for manufacturers that directly determine recyclability. Therefore, the optimal joint consideration of recycling design and operations is important for effective recycling adoption and management. We also reveal that the supply chain structure is a critical factor affecting environmental performance and financial outcomes. A more integrated supply chain can yield better performance, highlighting the importance of orchestrating the recycling process of a supply chain in an integrated manner. Furthermore, we need to be cautious when considering outsourcing the overall recycling process to a professional third-party environment company. Without proper control over other players, this outsourcing decision, which may seem environmentally beneficial, can have serious repercussions for environmental performance. Finally, we identify the external and internal conditions under which environmental and profit performance can be enhanced through recycling.