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Profit Analysis and Supply Chain Planning Model for Closed-Loop Supply Chain in Fashion Industry

Author

Listed:
  • Jisoo Oh

    () (Department of Information and Industrial Engineering, Yonsei University, 50 Yonsei-ro, Seoul 120-749, Korea)

  • Bongju Jeong

    () (Department of Information and Industrial Engineering, Yonsei University, 50 Yonsei-ro, Seoul 120-749, Korea)

Abstract

In recent decades, due to market growth and use of synthetic fiber, the fashion industry faces a rapid increase of CO 2 emission throughout the production cycle and raises environmental issues in recovery processing. This study proposes a closed-loop supply chain (CLSC) structure in fashion industry and develops its planning model as multi-objective mixed integer linear programming to find an optimal trade-off between CLSC profit and CO 2 emission. The planning model is associated with the profit analysis of each member in CLSC to find the optimal price of products on CLSC network. The model determines optimal production, transportation, and inventory quantities on CLSC network. The proposed models are validated using numerical experiments and sensitivity analyses, and from the results some managerial insights are addressed.

Suggested Citation

  • Jisoo Oh & Bongju Jeong, 2014. "Profit Analysis and Supply Chain Planning Model for Closed-Loop Supply Chain in Fashion Industry," Sustainability, MDPI, Open Access Journal, vol. 6(12), pages 1-30, December.
  • Handle: RePEc:gam:jsusta:v:6:y:2014:i:12:p:9027-9056:d:43258
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    References listed on IDEAS

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    1. Caniato, Federico & Caridi, Maria & Crippa, Luca & Moretto, Antonella, 2012. "Environmental sustainability in fashion supply chains: An exploratory case based research," International Journal of Production Economics, Elsevier, vol. 135(2), pages 659-670.
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    Citations

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    Cited by:

    1. Hakan Karaosman & Gustavo Morales-Alonso & Alessandro Brun, 2016. "From a Systematic Literature Review to a Classification Framework: Sustainability Integration in Fashion Operations," Sustainability, MDPI, Open Access Journal, vol. 9(1), pages 1-19, December.
    2. repec:gam:jsusta:v:10:y:2018:i:4:p:1176-:d:141005 is not listed on IDEAS
    3. Tsan-Ming Choi & Yongjian Li, 2015. "Sustainability in Fashion Business Operations," Sustainability, MDPI, Open Access Journal, vol. 7(11), pages 1-7, November.

    More about this item

    Keywords

    closed-loop supply chain; fashion industry; profit analysis; supply planning model; sustainable supply chain management; CO 2 emission;

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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