IDEAS home Printed from https://ideas.repec.org/a/wly/mgtdec/v44y2023i8p4589-4607.html
   My bibliography  Save this article

Managing mass customization products with modular design for recycling in a closed‐loop supply chain

Author

Listed:
  • Lan Jiang

Abstract

Investing in the modular architecture design for mass customization (MC) products cannot only enable product variety, thereby improving MC ability to cope with consumer individual needs, but also increase the product interchangeability, thereby reducing the recycling and remanufacturing costs. This paper considers a closed‐loop supply chain (CLSC) with MC, in which the manufacturer sells the new, modular MC products via the retailer and also actively recycles the used ones for remanufacturing. We study the optimal modularity level for new MC products and the best recycling channel for used MC products in a CLSC. One centralized and two decentralized recycling decision models are formulated, and then the equilibrium solutions among proposed models are compared and analyzed. The government subsidy and channel leadership are further discussed in extension. Different from the traditional view that outsourcing the recycling activity to retailer is best because of its proximity to consumers, our results suggest that the manufacturer directly recycling used MC products can be optimal in terms of modularity level, recycling rate, supply chain profits, total social surplus, and decision‐making speed.

Suggested Citation

  • Lan Jiang, 2023. "Managing mass customization products with modular design for recycling in a closed‐loop supply chain," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(8), pages 4589-4607, December.
    • Handle: RePEc:wly:mgtdec:v:44:y:2023:i:8:p:4589-4607
    DOI: 10.1002/mde.3972
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/mde.3972
    Download Restriction: no
    File URL: https://libkey.io/10.1002/mde.3972?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Zhang, Min & Zhao, Xiande & Qi, Yinan, 2014. "The effects of organizational flatness, coordination, and product modularity on mass customization capability," International Journal of Production Economics, Elsevier, vol. 158(C), pages 145-155.
    2. Li, Qingying, 2018. "The optimal multi-period modular design with fairness concerns," International Journal of Production Economics, Elsevier, vol. 206(C), pages 233-249.
    3. Chuang, Chia-Hung & Wang, Charles X. & Zhao, Yabing, 2014. "Closed-loop supply chain models for a high-tech product under alternative reverse channel and collection cost structures," International Journal of Production Economics, Elsevier, vol. 156(C), pages 108-123.
    4. Fogliatto, Flavio S. & da Silveira, Giovani J.C. & Borenstein, Denis, 2012. "The mass customization decade: An updated review of the literature," International Journal of Production Economics, Elsevier, vol. 138(1), pages 14-25.
    5. Liu, Huihui & Lei, Ming & Deng, Honghui & Keong Leong, G. & Huang, Tao, 2016. "A dual channel, quality-based price competition model for the WEEE recycling market with government subsidy," Omega, Elsevier, vol. 59(PB), pages 290-302.
    6. Wu, Cheng-Han, 2012. "Product-design and pricing strategies with remanufacturing," European Journal of Operational Research, Elsevier, vol. 222(2), pages 204-215.
    7. Trentin, Alessio & Forza, Cipriano & Perin, Elisa, 2015. "Embeddedness and path dependence of organizational capabilities for mass customization and green management: A longitudinal case study in the machinery industry," International Journal of Production Economics, Elsevier, vol. 169(C), pages 253-276.
    8. Rachel Campos Sabioni & Joanna Daaboul & Julien Le Duigou, 2022. "Concurrent optimisation of modular product and Reconfigurable Manufacturing System configuration: a customer-oriented offer for mass customisation," International Journal of Production Research, Taylor & Francis Journals, vol. 60(7), pages 2275-2291, April.
    9. Wang, Wenbin & Zhang, Yu & Zhang, Kai & Bai, Tuo & Shang, Jennifer, 2015. "Reward–penalty mechanism for closed-loop supply chains under responsibility-sharing and different power structures," International Journal of Production Economics, Elsevier, vol. 170(PA), pages 178-190.
    10. Genc, Talat S. & De Giovanni, Pietro, 2018. "Optimal return and rebate mechanism in a closed-loop supply chain game," European Journal of Operational Research, Elsevier, vol. 269(2), pages 661-681.
    11. Choi, Tsan-Ming & Ma, Cheng & Shen, Bin & Sun, Qi, 2019. "Optimal pricing in mass customization supply chains with risk-averse agents and retail competition," Omega, Elsevier, vol. 88(C), pages 150-161.
    12. Shuang Ma & Gang Du & Jianxin (Roger) Jiao & Ruchuan Zhang, 2016. "Hierarchical game joint optimization for product family-driven modular design," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 67(12), pages 1496-1509, December.
    13. Genc, Talat S. & De Giovanni, Pietro, 2020. "Closed-loop supply chain games with innovation-led lean programs and sustainability," International Journal of Production Economics, Elsevier, vol. 219(C), pages 440-456.
    14. Hong, Xianpei & Xu, Lei & Du, Peng & Wang, Wenjuan, 2015. "Joint advertising, pricing and collection decisions in a closed-loop supply chain," International Journal of Production Economics, Elsevier, vol. 167(C), pages 12-22.
    15. Zhang, Chu & Zheng, Xiaona, 2021. "Customization strategies between online and offline retailers," Omega, Elsevier, vol. 100(C).
    16. Hongzhen Song & Jiantong Zhang & Junchang Li, 2022. "The impacts of subsidy strategies and recycling modes on the closed‐loop supply chain," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(8), pages 4106-4123, December.
    17. Yue Wang & Zhe Wang & Yande Gong & Bangyi Li & Yongbo Cheng, 2023. "The implications of the carbon tax on the vehicle remanufacturing industry in the complex competitive environment," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(5), pages 2697-2712, July.
    18. Choi, Tsan-Ming & Li, Yongjian & Xu, Lei, 2013. "Channel leadership, performance and coordination in closed loop supply chains," International Journal of Production Economics, Elsevier, vol. 146(1), pages 371-380.
    19. Peng Ma & Kevin W. Li & Zhou-Jing Wang, 2017. "Pricing decisions in closed-loop supply chains with marketing effort and fairness concerns," International Journal of Production Research, Taylor & Francis Journals, vol. 55(22), pages 6710-6731, November.
    20. R. Canan Savaskan & Shantanu Bhattacharya & Luk N. Van Wassenhove, 2004. "Closed-Loop Supply Chain Models with Product Remanufacturing," Management Science, INFORMS, vol. 50(2), pages 239-252, February.
    21. Xiong, Yu & Zhao, Quanwu & Zhou, Yu, 2016. "Manufacturer-remanufacturing vs supplier-remanufacturing in a closed-loop supply chain," International Journal of Production Economics, Elsevier, vol. 176(C), pages 21-28.
    22. Wang, Nengmin & He, Qidong & Jiang, Bin, 2019. "Hybrid closed-loop supply chains with competition in recycling and product markets," International Journal of Production Economics, Elsevier, vol. 217(C), pages 246-258.
    23. Chen, Cheng-Kang & Ulya, M. Akmalul ', 2019. "Analyses of the reward-penalty mechanism in green closed-loop supply chains with product remanufacturing," International Journal of Production Economics, Elsevier, vol. 210(C), pages 211-223.
    24. Taleizadeh, Ata Allah & Moshtagh, Mohammad Sadegh & Vahedi-Nouri, Behdin & Sarkar, Biswajit, 2023. "New products or remanufactured products: Which is consumer-friendly under a closed-loop multi-level supply chain?," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    25. Zhang, Min & Guo, Hangfei & Huo, Baofeng & Zhao, Xiande & Huang, Jianbo, 2019. "Linking supply chain quality integration with mass customization and product modularity," International Journal of Production Economics, Elsevier, vol. 207(C), pages 227-235.
    26. R. Canan Savaskan & Luk N. Van Wassenhove, 2006. "Reverse Channel Design: The Case of Competing Retailers," Management Science, INFORMS, vol. 52(1), pages 1-14, January.
    27. Hamed Jalali & Amir Ansaripoor & Vinay Ramani & Pietro De Giovanni, 2022. "Closed-loop supply chain models with coopetition options," International Journal of Production Research, Taylor & Francis Journals, vol. 60(10), pages 3078-3106, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Huaqing Qiu & Xuejie Ren & Lindu Zhao, 2024. "Contract manufacturer encroachment via the customer‐to‐manufacturer strategy under different platform selling modes," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 45(4), pages 2591-2612, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Pietro De Giovanni & Georges Zaccour, 2022. "A selective survey of game-theoretic models of closed-loop supply chains," Annals of Operations Research, Springer, vol. 314(1), pages 77-116, July.
    3. Sarkar, Sumit & Bhala, Shrey, 2021. "Coordinating a closed loop supply chain with fairness concern by a constant wholesale price contract," European Journal of Operational Research, Elsevier, vol. 295(1), pages 140-156.
    4. Matsui, Kenji, 2022. "Optimal timing of acquisition price announcement for used products in a dual-recycling channel reverse supply chain," European Journal of Operational Research, Elsevier, vol. 300(2), pages 615-632.
    5. Pietro Giovanni & Georges Zaccour, 2019. "A selective survey of game-theoretic models of closed-loop supply chains," 4OR, Springer, vol. 17(1), pages 1-44, March.
    6. Matsui, Kenji, 2023. "Dual-recycling channel reverse supply chain design of recycling platforms under acquisition price competition," International Journal of Production Economics, Elsevier, vol. 259(C).
    7. Liu, Zhi & Li, Kevin W. & Li, Bang-Yi & Huang, Jun & Tang, Juan, 2019. "Impact of product-design strategies on the operations of a closed-loop supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 124(C), pages 75-91.
    8. Bo Wang & Ning Wang, 2022. "Decision Models for a Dual-Recycling Channel Reverse Supply Chain with Consumer Strategic Behavior," Sustainability, MDPI, vol. 14(17), pages 1-18, August.
    9. Maiti, T. & Giri, B.C., 2017. "Two-way product recovery in a closed-loop supply chain with variable markup under price and quality dependent demand," International Journal of Production Economics, Elsevier, vol. 183(PA), pages 259-272.
    10. Qi Wang & Kebing Chen & Shengbin Wang & Xiaogang Cao, 2022. "Optimal decisions in a closed-loop supply chain: fairness concerns, corporate social responsibility and information value," Annals of Operations Research, Springer, vol. 309(1), pages 277-304, February.
    11. Shan Liu & Caiquan Duan & Jinyou Qiao & Yan Sun, 2025. "Manufacturer's cooperative recycling strategies considering the negative externality of unrecycled products: Non‐cooperative, fund‐cooperative, or labour‐cooperative," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 46(1), pages 201-221, January.
    12. Feng, Lipan & Govindan, Kannan & Li, Chunfa, 2017. "Strategic planning: Design and coordination for dual-recycling channel reverse supply chain considering consumer behavior," European Journal of Operational Research, Elsevier, vol. 260(2), pages 601-612.
    13. Chirantan Mondal & Bibhas C. Giri & Sanjib Biswas, 2022. "Integrating Corporate Social Responsibility in a closed-loop supply chain under government subsidy and used products collection strategies," Flexible Services and Manufacturing Journal, Springer, vol. 34(1), pages 65-100, March.
    14. Yande Gong & Mengze Chen & Yuliang Zhuang, 2019. "Decision-Making and Performance Analysis of Closed-Loop Supply Chain under Different Recycling Modes and Channel Power Structures," Sustainability, MDPI, vol. 11(22), pages 1-26, November.
    15. Jalali, Hamed & Ansaripoor, Amir H. & De Giovanni, Pietro, 2020. "Closed-loop supply chains with complementary products," International Journal of Production Economics, Elsevier, vol. 229(C).
    16. Shiqi Xu & Hui Liu & Guangye Xu, 2021. "Selection of Recycling Channels and Product Eco-Design with Take-Back Regulation," Sustainability, MDPI, vol. 13(16), pages 1-17, August.
    17. Wang, Wenbin & Yang, Siqi & Xu, Lei & Yang, Xiaoli, 2019. "Carrot/stick mechanisms for collection responsibility sharing in multi-tier closed-loop supply chain management," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 125(C), pages 366-387.
    18. Yang, Lei & Hu, Yijuan & Huang, Lijuan, 2020. "Collecting mode selection in a remanufacturing supply chain under cap-and-trade regulation," European Journal of Operational Research, Elsevier, vol. 287(2), pages 480-496.
    19. Xuxin Lai & Nengmin Wang & Bin Jiang & Tao Jia, 2024. "Choosing Recovery Strategies for Waste Electronics: How Product Modularity Influences Cooperation and Competition," Sustainability, MDPI, vol. 16(20), pages 1-31, October.
    20. He, Yuanjie, 2017. "Supply risk sharing in a closed-loop supply chain," International Journal of Production Economics, Elsevier, vol. 183(PA), pages 39-52.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:mgtdec:v:44:y:2023:i:8:p:4589-4607. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/cgi-bin/jhome/7976 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.