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Collection and remanufacturing channels selection under a product take-back regulation with remanufacturing target

Author

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  • Siddhartha Kushwaha
  • Felix T.S. Chan
  • Kaustov Chakraborty
  • Saurabh Pratap

Abstract

Consider a product take-back regulation with remanufacturing target imposed on a manufacturer. The manufacturer is responsible for regulation compliance by remanufacturing the product collected from multiple geographic regions. The channel alternatives for the manufacturer are 1) regional third-party collection firms, 2) regional third-party collection-remanufacturing firms, 3) a third-party firm for remanufacturing, 4) in-house collection, and 5) in-house remanufacturing. The paper proposes a mixed-integer linear programming problem (MILP) formulation for the manufacturer to select a combination of these channels to maximise the profit over a finite planning horizon. The decision model has the number of used products, remanufacturing approach, heterogeneity in the quality of returned products, and the remanufacturing target as constraints. We conduct numerical analysis using field study data for 200 litres of mild-steel drums in India to draw managerial insights. The vital suggestions and insights are as follows. 1) Regulators to impose incremental targets considering the current optimum level of remanufacturing. 2) A comprehensive remanufacturing target covering multi-region/market to discourage manufacturers from evading behaviour. 3) Managers to assist regional firms in increasing the recovery rate of products that can collect and remanufacture. 5) Manufacturers to remanufacture products during the decline stage of product life cycle (PLC) for higher profits.

Suggested Citation

  • Siddhartha Kushwaha & Felix T.S. Chan & Kaustov Chakraborty & Saurabh Pratap, 2022. "Collection and remanufacturing channels selection under a product take-back regulation with remanufacturing target," International Journal of Production Research, Taylor & Francis Journals, vol. 60(24), pages 7384-7410, December.
  • Handle: RePEc:taf:tprsxx:v:60:y:2022:i:24:p:7384-7410
    DOI: 10.1080/00207543.2022.2072786
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    Cited by:

    1. Linan Zhou & Gengui Zhou & Hangying Li & Jian Cao, 2023. "Channel Selection of Closed-Loop Supply Chain for Scrapped Agricultural Machines Remanufacturing," Sustainability, MDPI, vol. 15(6), pages 1-30, March.
    2. Yan Zhou & Miao Hou & Kar-Hung Wong, 2023. "The Optimal Remanufacturing Strategy of the Closed-Loop Supply Chain Network under Government Regulation and the Manufacturer’s Design for the Environment," Sustainability, MDPI, vol. 15(9), pages 1-34, April.
    3. Dindayal Agrawal & Ashish Dwivedi & Anchal Patil & Sanjoy Kumar Paul, 2023. "Impediments of product recovery in circular supply chains: Implications for sustainable development," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(3), pages 1618-1637, June.

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