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A Sustainable Closed-Loop Supply Chain Decision Mechanism in the Electronic Sector

Author

Listed:
  • Jiafu Su

    (Chongqing Key Laboratory of Electronic Commerce & Supply Chain System, Chongqing Technology and Business University, Chongqing 400067, China)

  • Chi Li

    (The State Key Laboratory of Mechanical Transmission, Chongqing University, Chongqing 400032, China)

  • Sang-Bing Tsai

    (Zhongshan Institute, University of Electronic Science and Technology of China, No. 1, Xueyuan Road, Zhongshan 528400, Guangdong, China
    Research Center for Environment and Sustainable Development of China Civil Aviation, Civil Aviation University of China, Tianjin 300300, China)

  • Hui Lu

    (Tianhua College, Shanghai Normal University, Shanghai 201815, China)

  • Aijun Liu

    (Department of Management Engineering, School of Economics & Management, Xidian University, Xi’an 710071, Shaanxi, China
    State Key Laboratory for Manufacturing Systems Engineering, Xi’an Jiaotong University, Xi’an 710049, Shaanxi, China)

  • Quan Chen

    (Zhongshan Institute, University of Electronic Science and Technology of China, No. 1, Xueyuan Road, Zhongshan 528400, Guangdong, China)

Abstract

In a closed-loop supply chain for electronic products, the manufacturer’s priority is to enhance the residual value of the collected end-of-use product and decide whether to outsource this business to a retailer, a third-party service, or retain it exclusively. In this paper, we constructed three models to study the decision mechanism in a closed-loop supply chain, with different players selected to collect the used product. By comparing the three models, we characterized the conditions under which the manufacturer will benefit most, and we then aimed to determine the best choice for the manufacturer. Our findings show that, when the retailer and the third-party service provider provide equal performance in collecting the used product, the manufacturer will give priority to the third-party service provider if they choose to outsource this business. If the reverse flows managed by the retailer result in a higher payoff for the manufacturer, then the manufacturer will choose to outsource this business to the retailer who will also benefit.

Suggested Citation

  • Jiafu Su & Chi Li & Sang-Bing Tsai & Hui Lu & Aijun Liu & Quan Chen, 2018. "A Sustainable Closed-Loop Supply Chain Decision Mechanism in the Electronic Sector," Sustainability, MDPI, vol. 10(4), pages 1-15, April.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:4:p:1295-:d:142612
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    References listed on IDEAS

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    Cited by:

    1. Jackson Jinhong Mi & Zongsheng Huang & Kai Wang & Sang-Bing Tsai & Guodong Li & Jiangtao Wang, 2018. "The Presence of a Powerful Retailer on Dynamic Collecting Closed-Loop Supply Chain From a Sustainable Innovation Perspective," Sustainability, MDPI, vol. 10(7), pages 1-17, June.
    2. Jiafu Su & Chi Li & Qingjun Zeng & Jiaquan Yang & Jie Zhang, 2019. "A Green Closed-Loop Supply Chain Coordination Mechanism Based on Third-Party Recycling," Sustainability, MDPI, vol. 11(19), pages 1-14, September.
    3. Navid Zarbakhshnia & Devika Kannan & Reza Kiani Mavi & Hamed Soleimani, 2020. "A novel sustainable multi-objective optimization model for forward and reverse logistics system under demand uncertainty," Annals of Operations Research, Springer, vol. 295(2), pages 843-880, December.
    4. Deepak Singhal & Sarat Kumar Jena & Satyabrata Aich & Sushanta Tripathy & Hee-Cheol Kim, 2021. "Remanufacturing for Circular Economy: Understanding the Impact of Manufacturer’s Incentive under Price Competition," Sustainability, MDPI, vol. 13(21), pages 1-19, October.
    5. Jie Jian & Yu Guo & Lin Jiang & Yanyan An & Jiafu Su, 2019. "A Multi-Objective Optimization Model for Green Supply Chain Considering Environmental Benefits," Sustainability, MDPI, vol. 11(21), pages 1-20, October.
    6. Qiang Han & Yuyan Wang, 2018. "Decision and Coordination in a Low-Carbon E-Supply Chain Considering the Manufacturer’s Carbon Emission Reduction Behavior," Sustainability, MDPI, vol. 10(5), pages 1-23, May.
    7. 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.
    8. Jie Yang & Jiafu Su & Lijun Song, 2019. "Selection of Manufacturing Enterprise Innovation Design Project Based on Consumer’s Green Preferences," Sustainability, MDPI, vol. 11(5), pages 1-16, March.
    9. Kai-Cheng Liao & Ming-Yue Yue & Si-Wei Sun & Hong-Bo Xue & Wei Liu & Sang-Bing Tsai & Jiang-Tao Wang, 2018. "An Evaluation of Coupling Coordination between Tourism and Finance," Sustainability, MDPI, vol. 10(7), pages 1-23, July.

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