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The Challenge of Closed-Loop Supply Chains


  • V. Daniel R. Guide

    () (Department of Supply Chain and Information Systems, Smeal College of Business Administration, Pennsylvania State University, University Park, Pennsylvania 16802)

  • Terry P. Harrison

    () (Department of Supply Chain and Information Systems, Smeal College of Business Administration, Pennsylvania State University, University Park, Pennsylvania 16802)

  • Luk N. Van Wassenhove

    () (Technology Management Area, INSEAD, Boulevard de Constance, 77305 Fontainebleau Cedex, France)


Closed-loop supply chains differ significantly from forward supply chains in many aspects. These differences are not well understood in many contexts, and the situation is complicated by many types of product returns. Progress is slow since closed-loop supply chains are rarely considered as value-creating systems, and much of the focus is on the operational aspects, rather than the larger strategic issues. Interest is growing in the US because of the potential profitability and in the European Union because of legislation. New business models need to be developed by joint cooperation between industry and academia that take a life-cycle approach to products.

Suggested Citation

  • V. Daniel R. Guide & Terry P. Harrison & Luk N. Van Wassenhove, 2003. "The Challenge of Closed-Loop Supply Chains," Interfaces, INFORMS, vol. 33(6), pages 3-6, December.
  • Handle: RePEc:inm:orinte:v:33:y:2003:i:6:p:3-6
    DOI: 10.1287/inte.

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    Cited by:

    1. Rocío González-Sánchez & Davide Settembre-Blundo & Anna Maria Ferrari & Fernando E. García-Muiña, 2020. "Main Dimensions in the Building of the Circular Supply Chain: A Literature Review," Sustainability, MDPI, Open Access Journal, vol. 12(6), pages 1-25, March.
    2. Makarius, Erin E. & Srinivasan, Mahesh, 2017. "Addressing skills mismatch: Utilizing talent supply chain management to enhance collaboration between companies and talent suppliers," Business Horizons, Elsevier, vol. 60(4), pages 495-505.
    3. Azadegan, Arash & Golara, Sina & Kach, Andrew & Mousavi, Nasim, 2018. "Corporate environmental investments: A cross-national study on managerial decision making," International Journal of Production Economics, Elsevier, vol. 199(C), pages 47-64.
    4. Germán González Rodríguez & Jose M. Gonzalez-Cava & Juan Albino Méndez Pérez, 2020. "An intelligent decision support system for production planning based on machine learning," Journal of Intelligent Manufacturing, Springer, vol. 31(5), pages 1257-1273, June.
    5. V. Daniel R. Guide & Luc Muyldermans & Luk N. Van Wassenhove, 2005. "Hewlett-Packard Company Unlocks the Value Potential from Time-Sensitive Returns," Interfaces, INFORMS, vol. 35(4), pages 281-293, August.
    6. Chang Fang & Xinbao Liu & Jun Pei & Wenjuan Fan & Panos M. Pardalos, 2016. "Optimal production planning in a hybrid manufacturing and recovering system based on the internet of things with closed loop supply chains," Operational Research, Springer, vol. 16(3), pages 543-577, October.
    7. Yangke Ding & Lei Ma & Ye Zhang & Dingzhong Feng, 2018. "Analysis of Evolution Mechanism and Optimal Reward-Penalty Mechanism for Collection Strategies in Reverse Supply Chains: The Case of Waste Mobile Phones in China," Sustainability, MDPI, Open Access Journal, vol. 10(12), pages 1-17, December.
    8. Dong-Her Shih & Chia-Ming Lu & Chia-Hao Lee & Sin-Ye Cai & Kuo-Jui Wu & Ming-Lang Tseng, 2018. "Eco-Innovation in Circular Agri-Business," Sustainability, MDPI, Open Access Journal, vol. 10(4), pages 1-13, April.
    9. Josip Marić & Marco Opazo-Basáez, 2019. "Green Servitization for Flexible and Sustainable Supply Chain Operations: A Review of Reverse Logistics Services in Manufacturing," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 20(1), pages 65-80, December.
    10. Kleber, Rainer & Quariguasi Frota Neto, João & Reimann, Marc, 2020. "Proprietary parts as a secondary market strategy," European Journal of Operational Research, Elsevier, vol. 283(3), pages 929-941.
    11. Muyldermans, L. & Van Wassenhove, L.N. & Guide, V.D.R., 2019. "Managing high-end ex-demonstration product returns," European Journal of Operational Research, Elsevier, vol. 277(1), pages 195-214.
    12. Ponte, Borja & Naim, Mohamed M. & Syntetos, Aris A., 2019. "The value of regulating returns for enhancing the dynamic behaviour of hybrid manufacturing-remanufacturing systems," European Journal of Operational Research, Elsevier, vol. 278(2), pages 629-645.
    13. Tong Shu & Jiajia Xu & Shou Chen & Shouyang Wang & Kin Keung Lai, 2018. "Remanufacturing Decisions with WTP Discrepancy and Uncertain Quality of Product Returns," Sustainability, MDPI, Open Access Journal, vol. 10(7), pages 1-23, June.
    14. Kyung Sung Jung & Milind Dawande & H. Neil Geismar & V. Daniel R. Guide & Chelliah Sriskandarajah, 2016. "Supply planning models for a remanufacturer under just-in-time manufacturing environment with reverse logistics," Annals of Operations Research, Springer, vol. 240(2), pages 533-581, May.
    15. Shimada, Tomoaki & Van Wassenhove, Luk N., 2019. "Closed-Loop supply chain activities in Japanese home appliance/personal computer manufacturers: A case study," International Journal of Production Economics, Elsevier, vol. 212(C), pages 259-265.


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