Product recovery optimization in closed-loop supply chain to improve sustainability in manufacturing

Kannan Govindan*, P. C. Jha, Kiran Garg

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

When business practices shift from a traditional open supply chain to a closed loop instead, the environmental and societal issues are efficiently integrated in business development. However, even an efficiently integrated shift introduces a number of trade-offs due to the contradictory goals that emerge from that business’s economical, environmental and social dimensions. In this paper, we propose a multi-objective mixed integer mathematical problem for a generic closed-loop supply chain (CLSC) network to rationalise how a system’s product recovery helps to improve manufacturing sustainability. The CLSC network proposed in this study consists of a hybrid manufacturing facility, warehouse, distribution centres, collection centres and a hybrid recovery facility (HRF). The proposed model determines the best location for the HRF and optimal flow of products, recovered parts and material in the network while it simultaneously maximises profit, saves activity costs, helps to decrease the harmful effects of the manufacturing process and makes a positive impact on societal development. To validate the model, a numerical illustration with the help of a case study from an electrical manufacturing industry is offered. The results authenticate the approach of the model towards the fulfilment of various environmental regulations. A sensitivity analysis, completed on demand, and the return rate also assists decision-makers to manage their decisions with a broader insight towards manufacturing sustainability.

Original languageEnglish
JournalInternational Journal of Production Research
Volume54
Issue number5
Pages (from-to)1463-1486
ISSN0020-7543
DOIs
Publication statusPublished - 2016

Keywords

  • closed-loop supply chain management
  • manufacturing sustainability
  • product recovery
  • societal development
  • trade-offs

Fingerprint

Dive into the research topics of 'Product recovery optimization in closed-loop supply chain to improve sustainability in manufacturing'. Together they form a unique fingerprint.
  • Best Paper Award

    Govindan, M.E., PhD., , Kannan (Recipient), 2018

    Prize: Prizes, scholarships, distinctions

Cite this