Strategic and Tactical Aspects of Closed-Loop Supply Chains

Author(s): Thomas J.Kniesner;Mark Ferguson

Source:
    Journal:Foundations and Trends® in Technology, Information and Operations Management
    ISSN Print:1571-9545,  ISSN Online:1571-9533
    Publisher:Now Publishers
    Volume 3 Number 2,

Document Type: Article
Pages: (101-200)
DOI: 10.1561/0200000019

Abstract: Todays common business practice of extracting non-renewable raw materials from the earth, processing them, turning them into products, selling the products to customers, and then having the customers dispose of the products in a landfill or through incineration is not sustainable. Eventually, the basic raw materials that are used to build most of the products our economy is based on will run out, or become prohibitively expensive to extract more of. Cognizant of this fact, many firms are taking a closer look at their supply chain practices and exploring ways to reduce (or at least prolong the timing of) the amount of their product that ends up in landfills. They do so by finding profitable ways to recover their used products for remanufacturing, refurbishing, or recycling. The study of these efforts has been termed Closed-Loop Supply Chains. In this survey, we review some of the recent research in this field, with a particular focus on the strategic and tactical issues. Representative models from each area are presented along with their key managerial insights, providing the reader with both a high level overview and an in-depth look at the common assumptions and modeling frameworks that are used. Where appropriate, suggestions for needed research are pointed out. The survey is not intended to be a comprehensive review of the field, but rather an introduction to some of the more recent developments.

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