Gen2 RFID-Based System Framework for Resource Circulation in Closed-Loop Supply Chains

Product recycling has become a mandatory activity under extended producer responsibility. Therefore, it is important to operate a closed-loop supply chain that integrates sourcing, production, delivery, and recycling to achieve not only environmental sustainability, but also economic benefits. However, this goal is affected by chronic problems caused by uncertainties relating to the return timing, quantity, and quality of returned items. Many studies proved that information visibility could solve these problems. In this context, a system framework for closed-loop supply chain management is proposed that gathers real-time information within a supply chain and product lifecycle by using the Internet-of-Things, including radio frequency identification (RFID). Specifically, the most recent Gen2 RFID protocol, which provides new features to create new positive effects, is considered. Additionally, an information system is designed, including RFID tag encoding, which supports the operation of the proposed system. Finally, the lifecycle benefits are examined, such as counterfeit prevention, real-time monitoring and maintenance in the middle-of-life phase, and reverse process streamlining. The ultimate aim is to design a system that facilitates the profitable and environmentally friendly operation of the closed-loop supply chain.