849
Views
25
CrossRef citations to date
0
Altmetric
Original Articles

Future aspect of acquisition management in closed-loop supply chain

&
Pages 266-276 | Received 22 Aug 2014, Accepted 18 Mar 2016, Published online: 09 May 2016

Abstract

This paper reviews the current development and practices in closed-loop supply chain under content analysis of the published literatures. A comprehensive literature review of recent and state-of-the-art paper is vital to draw a framework and to shed light on the future direction. We have reviewed here articles on remanufacturing with special emphasis on literature related to acquisition management of returned items. For review of articles, various web-based search engine, books, journal and conference proceeding are selected and reviewed. The research papers are then analysed and categorized to construct useful foundation of past research. The review shows that current researchers are focusing on devising pricing policies to attract used products from customers. Finally, gaps in the literature are identified to suggest future research opportunities.

1. Introduction

Closed-loop supply chain (CLSC) has received considerable attention in recent times from researchers and practitioners. The focus of CLSC is on taking back products from user and recovering value by reusing the entire products, and/or some of its modules, components and parts. Customers’ concern and social responsibility towards the environment, awareness of industry about limited availability of natural resources, and government legislations are some of the main drivers for the emergence of CLSC management. Moreover, another important key factor is the economic potential of the used product that attracts many manufacturers to join in CLSC. The cost of a remanufactured product is usually about 40–60% of the cost for manufacturing a brand-new product with 20% of the manufacturing effort (Dowlatshahi Citation2000). The amount of energy required to produce remanufactured products from scratch is only 15%, and this increased saving would significantly reduce greenhouse gas emission (Giuntini and Gaudette Citation2004). The user may return their products due to variety of reasons during and after the product life cycles such as due to warranty, repair return, end-of-use return and end-of-life (EOL) returns. Therefore, it is very important to study not only the forward supply chain but also the reverse channel that deals with the return products.

The study on reverse supply chain can be traced back to the sixties, but research on CLSC can be found mostly after nineties. Many authors have developed mathematical models to study the various aspects of CLSC (Guide and Van Wassenhove Citation2009). Pokhrel and Mutha (Citation2009) in their comprehensive review paper have mentioned that there is a need to develop new models to enlighten the manufacturers to optimize the closed-loop system in an integrated manner. CLSC covers a broad range of areas and has an enormous potential to focus on economic, social and environmental aspects. Once the product is returned to a firm, it has several disposal options, i.e. repair, remanufacturing, reuse, refurbish, recycle and landfill. The manufacturer can collect the used product directly from the customer, through retailers or with the help of a third party.

Several strategies have been discussed in the literature to integrate the business processes and activities of different members of a decentralized CLSC. To ensure system-wide performance improvement, network design, collection, redistribution channel, quality, testing, disassembly and reassembly has to be addressed and combine with the forward process (Minner and Kiesmuller Citation2013). Different models have been developed in the literature for remanufacturing to provide decision support for these strategic and operational decisions (Fleischmann, Kuik, and Dekker Citation2002; Dekker et al. Citation2004). Broadly, there are three main issues related to the remanufacturing of returned products. They are (i) Product acquisition- means whether there is access to used product in the right quantity and quality in the market, (ii) Remanufacturing- it implies whether value can be recovered at reasonable cost and finally, (iii) Remarketing- means whether there is a market for the remanufactured product or not. Among the above-mentioned issues, the product acquisition plays a major role and without ensuring the availability of enough used product in the market, the other issues have no meaning. Hermansson and Sundin (Citation2005) have also mentioned that optimal acquisition price of return products is an important research issue in CLSC as the inability to acquire end-of-life products makes the rest of the process non-existent. Therefore, in this review paper, we have specifically discussed literatures related to acquisition management. The review mainly tries to cover the articles published during the last one decade. In the existing literature, various techniques such as price incentives, quantity, quality, etc. have been used as a product acquisition technique to manage the variability of the used product conditions.

The returned of used product is constrained and is to be ensured by paying an acquisition price to customers. On the other hand, nowadays when manufacturers are mandated by law to take back the used product, they have devised mechanism such as leasing out instead of outright sale and various customer acquisition schemes (e.g. buy-back, trade-in and deposit system) to ensure the return (Mitra Citation2015). It is also noticed that manufacturer also use the incentive mechanism for profit maximization even when there is no take-back legislation. The author also discussed that in some developing country, the legislation are not very stringent and environment consciousness is low and in those places manufacturers do not show much interest to take back the used products and also customer have no incentive to return the end-of-use and end-of-life products.

Guide and Van Wassenhove (Citation2009) have mentioned that acquisition of used products is the front end of the CLSC. They also point out that acquisition management is to be more critical in importance than operational and technical issues involved in the CLSC. For that this paper has undertaken the task of reviewing the CLSC literature under acquisition management domain only. The objective of the study was to encourage the researchers and to provide up to date state-of-the-art literature on acquisition management with future direction of research. In addition, the research gaps suggested in the paper address the several opportunities and challenges that is currently faced by business managers operating the CLSC.

2. Review methodology

We have adopted content analysis method for the review of papers. Content analysis is an observational research method that is used to evaluate the symbolic content of all forms of record communication systematically. Content analysis for review of literature on third party was used by Marasco (Citation2008). Pokhrel and Mutha (Citation2009) used content analysis for review of literature on reverse logistics under deterministic situation. Further, the content analysis method was also adopted to analyse the implementation of SAP R/3 for reengineering the supply chain using enterprise resource planning (Al-Mashari and Zairi Citation2000). Govindan, Soleimani, and Kannan (Citation2014) reviewed reverse logistics and CLSC to explore the future considering the content analysis. This paper utilizes the steps mentioned in Pokhrel and Mutha (Citation2009) to discuss and clarify the research methodology of the paper.

Similar to Pokhrel and Mutha (Citation2009), this review work is limited to the published articles from different journals, books and conference proceedings and various search engines such as Google scholar, Science direct, Informs, Scopus database and Willy database are used to explore the literature related to acquisition management in CLSC. Keywords such as ‘acquisition and closed-loop supply chain’, ‘acquisition and reverse supply chain’ and acquisition and remanufacturing are used to find the related literature. In this research, two books and nearly 90 journal publications have been reviewed, and these publications are mostly during the period of 2000–2014. It was observed that a major amount of publications, 57 out of 90 have discussed on acquisition management. The detail description of review protocol is given in Appendix A. The ‘Top 10’ contributing journals on this topic is listed in Table . The remaining contributions are available in 23 other journals with share of 42.18 percentages. The reviewed articles are published from various journals such as Production and Operations Management, International Journal of Production Research, Journal of Operations Management, International Journal of Production Economics, European Journal of Operational Research, International Journal of Sustainable Engineering, and Computers and Operations Research, etc. From Table , it is observed that acquisition management in a CLSC is mostly carried out in European Journal of Operational Research followed by Production and Operations Management and International Journal of Production Research and International Journal of Production Economics. The percentage share of published articles in European Journal of Operational Research are more compared to other journals.

Table 1. ‘Top 10’ journals.

The rising scientific interest in acquisition management in CLSC is observed from the number of articles published over time (see Figure ). From Figure , it is observed that there are higher number of hits in the time period of 2010–2015. From this, one can easily infer that interest of the scientific community in this area has grown significantly in recent years.

Figure 1. Trend and number of relevant publications.

Figure 1. Trend and number of relevant publications.

2.1. Literature content

The literature on CLSC is vast, and we have mainly focused on literature related to the acquisition management of CLSC. This enables us to develop the framework of research in remanufacturing area and to identify the research questions. The existing literature on CLSC can broadly be classified into six categories: (i) production planning & inventory management, (ii) product categorization, (iii) network design, (iv) method of collection, (v) pricing policy and (vi) acquisition management (Savaskan, Bhattacharya, and Van Wassenhove Citation2004; Savaskan and Van Wassenhove Citation2006; Ovchinnikov Citation2011; Shi, Zhang, and Sha Citation2011a; Toktay and Wei Citation2011; Ozkir and Basligil Citation2012; Mitra Citation2015). Categorizations of literature review through content analysis are given in Figure . Guide et al. (Citation2000) are the front-runner to address on product acquisition management, which acts as an interface between production planning and reverse logistics activities for firms engaged in value-added recovery. CLSC system contains input process, drivers and output process. Therefore, research can be focused on each group of these contents with acquisition management of remanufacturing. Inputs would refer to used product, used parts or components and new raw material that go through CLSC process. The used materials are collected from customers with various activities such as network design, method of collection and acquisition management. After collection, used materials could be stored at designated centres and then can be inspected for their quality. The value of used products can be judged by the manufacturer based on quality, and return time of used products. The acquisition price of used product is affected by deterministic and stochastic supply (Mitra Citation2015).

Figure 2. Content categories for a closed-loop supply chain.

Figure 2. Content categories for a closed-loop supply chain.

Drivers of CLSC are inspection, manufacturing and remanufacturing. This is a set of activities, which drive to convert input to output under different conditions. Production planning and inventory management also play a vital role in both manufacturing and remanufacturing activities. Processing for remanufacturing can be disassembly and separation of parts into different components.

The outcomes of CLSC are new products, and remanufactured product, which are affected by the pricing policy. The price of remanufactured product is decided by demand and competition among the players in the market. The pricing of these products could be an issue due to competition from suppliers of used materials.

3. Analysis of literature review through content categories

In this analysis, we observed how each activity is performed under content categories of CLSC. It is categorized along several dimensions and are shown in Figure . CLSC system contains input process, drivers and output process as discussed above.

3.1. Input

This section reviews the research that has been carried out in developing network design, collection systems and product acquisition management. Inputs would refer to new or used products materials. Literature reviewed for network design, collection of used products and acquisition management are given in Tables and .

Table 2. Summary of literature on network design and method of collection.

Table 3. Summary of literature related to acquisition management.

3.1.1. Network design

Network design activity deals with locating collection points to transport used products from customers. The authors have addressed the effect of product recovery on logistics network design under sequential and integrated design (Davis and Heineke 2005). French and LaForge (Citation2006) conducted an extensive study on reuse decisions made for components, product and material through returns and sources. The CLSC network design model can be categorized into a single objective (Schultmann, Zumkeller, and Rentz Citation2006) and multiple objectives (Sheu Citation2008) and in single and several periods. Till now to the best of our knowledge, no work is available, combining network design with acquisition management.

3.1.2. Method of collection

Many authors have discussed the problem on collection of used products. Savaskan, Bhattacharya, and Van Wassenhove (Citation2004) considered in their model that a manufacturer can collect the used products from the market in various ways such as (i) directly from the customer, i.e. direct collection, (ii) manufacturer can provide suitable incentives to an existing retailer to induce the collection and (iii) manufacturer can subcontract the collection activity to a third party. A few authors have mentioned that price competition between different products plays a major role in determining the channel structure (Krumwiede and Sheu Citation2002). Other authors suggested either combining retail activities with the collection of used products (Wojanowski, Verter, and Boyaci Citation2007) or outsourcing of reverse supply chain. Cheng (Citation2013) has evaluated the strategic game in which the original equipment manufacturer chooses the degree of interchangeability, and the remanufacturer determines the collection strategy under price competition.

3.1.3. Acquisition management

The articles on acquisition management are classified along several dimensions and are shown in Figure . It is observed that roughly 71% of the 33 research papers are analytical studies and 10% discussed on empirical and heuristic methods. The other categories are of 9% on case studies of which 6% have chosen a quantitative approach, and 3% are qualitative research paper. Guide and Van Wassenhove (Citation2001) addressed a framework for analysing the profitability of reuse activities by considering the acquisition of used products. Guide, Teunter, and Van Wassenhove (Citation2003) studied CLSC taking the assumptions of price sensitivity demands and returns rate. Further, authors controlled the quantity, quality and timing of returns by the price offered to buy back the used items. Authors controlled the quantity, quality and timing of returns by the price offered to buy back used items. This work is extended by Galbreth and Blackburn (Citation2006) for analysing the optimal acquisition and sorting policies in the presence of used products condition variability for a remanufacturer under deterministic and uncertain demand situation. But their model assumed that the condition distribution of acquired item is known with certainty. This assumption is relaxed by Galbreth and Blackburn (Citation2010) considering the condition of uncertainty for acquired items. They have provided solution by making tradeoff between acquisitions cum scrapping cost and remanufacturing costs when the used product condition varies widely and multiple remanufacturable conditions are possible. Qu and Williams (Citation2008) studied the automotive shredder that generally balances the quality and quantity of arriving hulks by adjusting their acquisition price. They formulated a non-linear programming for the automotive reverse production planning and pricing problem where the quantity of incoming hulks is a function of the purchase price. Bakal and Akcali (Citation2006) studied remanufacturing system for the end-of-life product and developed a mathematical model to determine the favourable value of the acquisition price and selling price considering settled price sensitive demand in the automotive industry. Shi, Zhang, and Sha (Citation2011a) discussed a hybrid system considering acquisition management in the sense of manufacturing brand-new products and remanufacturing returns as like as new one with pricing and production decisions, that satisfy the market demand. The authors restricted their analysis to the single product where the repair rate exceeds the demand rate. This assumption was relaxed by Shi, Zhang, and Sha (Citation2011b), and considered the multi products’ hybrid system under uncertain demands and uncertain returns. Xiong and Li (Citation2012) developed a dynamic programming approach to evaluate the core acquisition in a continuous-time Markov decision process. Again, Minner and Kiesmuller (Citation2013) studied a dynamic product acquisition in a CLSC to coordinate manufacturing and remanufacturing system considering both inventory and pricing mechanisms to control the products’ return and recovery process. Authors developed a mathematical model using Pontryagin’s maximum principle for minimizing manufacturing and remanufacturing cost along with buy back strategies under uncertain return. The summary of literature review related to CLSC input is given in Table . Wei et al. (Citation2013) have developed an optimal decision model of a retailer and a manufacturer in CLSC considering game theory under symmetric and asymmetric information. This paper explores the desirable decision on wholesale price, retail price and collection rate under four different game scenarios. Bulmus, Zhu, and Teunter (Citation2014) studied the competition between an original equipment manufacturer (OEM) and independently operating remanufacturer (IO)for selling the products as well as collecting the returned product from the market through the retailer. It is interesting to note in the paper that acquisition price of the OEM depends on its saving in manufacturing cost structure. Different authors have identified the acquisition management problem and solved by considering different solution approach and is given in Table .

Figure 3. Categorization of articles by research methodology.

Figure 3. Categorization of articles by research methodology.

Looking at the analysis of Table , some interesting points of important connections are seen. For instant, almost all deterministic demand and supply problems are set up by the analytical approaches considering direct method of collection under centralized system. Very few acquisition management problem are discussed considering Game theory and Dynamic programming technique in CLSC. There are very few researchers (11 out of 32) have discussed on acquisition management considering inventory management system (see Table ) under analytical technique. Although there are lot of research on acquisition management, only a few research studies have focused on the development of framework and empirical model about the acquisition management. Therefore, we can roughly claim that the acquisition management can be introduced in to the inventory management for better design and planning of CLSC.

3.2. Driver

The driver of CLSC is an inspection, manufacturing and remanufacturing. The majority of studies in CLSC is related to location and allocation problems and production control and inventory management. A few authors have considered integration of collection, inspection and consolidation of used products with forward logistics activities (Guide Citation2000). The groupings of literature under CLSC driver are given in Table .

Table 4. Summary of literature on CLSC driver.

3.2.1. Production control and inventory management

When the manufacturer is involved in manufacturing as well as remanufacturing, the manufacturer faces problem on the inventory/production control since it is very difficult to manage forward and backward flow of systems simultaneously. A few authors have developed models to determine equilibrium production strategy between identical firms considering push and pull strategy under quality competition to control the system in which all the return products are to be remanufactured (Mahajan and van Ryzin Citation2001). Koh et al. (Citation2002) have studied stationary demand, which is satisfied by remanufacturing the product as well as by externally purchasing brand new product by the manufacturer. The model was validated by considering examples of two remanufacturing products: drinking bottles and bullet jackets. Fleischmann, Kuik, and Dekker (Citation2002) addressed the inventory planning problem of used product with independent return and considered Poisson distribution of demand. Zhou et al. (Citation2006) examined both manufacturing and remanufacturing system, where inventory control strategy is an automatic order-based production control system. The handling of both homogeneous and heterogeneous parts of inventories (used parts, new parts, finished products and work-in-progress) is an important issue in CLSC for which researchers have suggested alternative procurement and inventory control strategies (Nakashima et al. Citation2002; Inderfurth Citation2004). Inventory management critically depends upon the available information about the future demand and return of the used products. In literature different methods have been proposed for estimating future products returns, which form the basic resource of CLSC (Toktay and Wei Citation2011). A stream of literature focuses on the inventory cost saving through reduction of the uncertainty of incentives (Guide, Teunter, and Van Wassenhove Citation2003). However, inventory management is another issue that closely related to the return quantity in CLSC. For that a systematic and detail analysis is required for inventory management under incentives mechanism.

3.3. Output

Pricing of the remanufactured product for sale is a complex and challenging issue. Due to the stochastic nature of returns as well as demand, it is difficult to determine the price of a remanufactured product vis-à-vis new products. The groupings of literature under CLSC outputs are given in Table .

Table 5. Summary of literature on CLSC output.

3.3.1. Pricing policy and competition

A few researchers have developed and discussed on pricing policy under stochastic return and stochastic demand. Vadde, Kamarthi, and Gupta (Citation2007) developed an analytical model to determine the optimum selling price for the remanufactured products and parts. Some authors have also discussed the switching behaviour of customer from new product to remanufactured product (Debo, Toktay, and Van Wassenhove Citation2005; Liang, Pokharel, and Lim Citation2009).

The competition issue has also drawn the attention of researchers. Competition between OEMs and local remanufacturers not only affect the supply of used products, but also the price of the remanufactured product (Majumder and Groenevelt Citation2001; Ferrer and Swaminathan Citation2006; Webster and Mitra Citation2007). The authors found that OEMs are in a better position than local remanufacturers to offer products at a lower price. Bernstein and Federgruen (Citation2005) studied the behaviour of decentralized supply chain with competing retailers and a single supplier under demand uncertainty in a two-echelon distribution system. They derived a contractual arrangement between the parties for coordinating decentralized and centralized chains. Savaskan and Van Wassenhove (Citation2006) addressed the interaction between manufacturers reverse channel choice for collecting the used products and pricing decision in the forward channel under retail competition. Authors have studied direct and indirect collection in CLSC and examined the effect of collection of used products on the new products market. They found that in direct reverse channel, the total channel profit is driven by the impact of returns on the collection effort, whereas in the indirect reverse channel, the total chain profit is driven by the competitive interaction between the retailers. Wu (Citation2012) studied price and service competition between the manufacturer and remanufacture with a common retailer. The author has investigated the profits of the chain members by considering different interactions between price and service. Further, Gu and Gao (Citation2012) and Jena and Sarmah (Citation2014b) addressed the wholesale price, the retailer price and collection price of the used product for two competing manufacturer. In their study, the competition between two manufactures is described by the ratio of substitute products and market size. Ruiz-Benitez and Muriel (Citation2014) discussed about wholesale price and buy-back contract between a manufacturer and retailer considering retail price exogenously under stochastic demand. They found that buy-back contract is better than wholesale price contract under retail competition.

The competition between OEMs and local manufacturers not only affect the price of the remanufactured products but also return of the used products from the market (Debo, Toktay, and Van Wassenhove Citation2005). Researchers have also recommended the early entry of OEMs and local remanufacturer to gain the advantage of first mover of the return supply.

4. Discussion on future scope of acquisition management research

In the literature, many studies have discussed on pricing policy, production planning and inventory management, and method of collection in remanufacturing system. However, only a few authors have studied on optimal acquisition price of return product, which is considered to be an important research issue in remanufacturing. Till date, many research questions on this area are unanswered. For instance, authors have discussed on acquisition price and coordination problems separately in the remanufacturing problems. However, Pokhrel and Mutha (Citation2009), Govindan, Soleimani, and Kannan (Citation2014) and Mitra (Citation2015) are the three suggested papers in this direction. Based on detail review of the literature and current ongoing practices in the industry, the following research gaps have been identified.

(1)

In a CLSC, the manufacturer can satisfy market demand by remanufacturing returns as like as new products and through external manufacturing of brand new products if sufficient amounts of return products are not available for remanufacturing (Guide and Van Wassenhove Citation2009). The availability of return item demand is uncertain and sensitive to acquisition price and availability of used product in a market (Cohen, Lobel, and Perakis Citation2015). It has been observed that determination of optimal acquisition price under availability of acquisition product in the market is a major challenge for any remanufacturer. A few researcher have studied this problem considering the uncertain quantity (Shi, Zhang, and Sha Citation2011b; Qiang et al. Citation2013) and unsure quality (Klausner and Hendrickson Citation2000; Guide and Van Wassenhove Citation2001; Zikopoulos and Tagaras Citation2007) of used product in the market. Though the model on optimal acquisition of return product is developed, but till the date, no work has been reported in the literature about the effect of availability of return products on acquisition price under stochastic market demands environment (Shi, Zhang, and Sha Citation2011a).

(2)

The second direction of research could be to incorporate pricing mechanisms of remanufactured products based on quality of the returned products. Higher incentive can be paid to those customers who return used products in good condition as compared to others (Sheu and Chen Citation2012; Souza Citation2013; Jena and Sarmah Citation2014a). Therefore, integration of models from acquisition of returned product to the sales of remanufactured product should be considered.

(3)

In recent times, coordination and competition among the supply chain-members have received lots of attention from researchers in the forward supply chain, and a new term ‘co-opetition’ has appeared in the literature. A few studies have been carried out considering coordination and competition issues in a CLSC in the deterministic environment (Savaskan and Van Wassenhove Citation2006). Few authors have considered price and service competition among the manufacturers (Gu and Gao Citation2012) and between the manufacturer and remanufacturer under deterministic demand situation. Until now, no work has been reported in the literature on the effect of market size, transfer price and acquisition cost on total channel profit under coordination and price competition in a reverse manufacturing system.

(4)

Fulfilment of market demand in dynamic acquisition costs under deterministic and stochastic supply is a major issue in a CLSC (Govindan, Soleimani, and Kannan Citation2014). Very few papers are available that have discussed on dynamic product acquisition cost considering deterministic inventory of new and used products under stochastic supply and demand. Further study needs to be carried out to answer certain research questions in this area.

(5)

A few studies have been made towards customer utility on the remanufactured products under cost management in CLSC (Ovchinnikov Citation2011). Some authors have mentioned that manufacturer value-addition is one of the major issues in a CLSC under acquisition management (Atasu, Toktay, and Van Wassenhove Citation2013). A few authors in the reverse logistics literature have mentioned the production of remanufactured product over manufactured product by the manufacturer under cost constraint in a competitive market. These aspects need further study considering the growing market of remanufactured products in general.

(6)

The CLSC with many competitive manufacturers and one common retailer, or one common manufacturer and numerous competitive retailers can be considered under asymmetric information (Wei et al. Citation2013; Zu-Jun et al. Citation2015). Here, the future work can explore the effect of asymmetrical information on acquisition price management in CLSC.

(7)

Government plays an important role in the formation and operation of CLSC (Ma, Zhao, and Ke Citation2013). Some authors have already discussed the importance of government incentives in CLSC. However, till date no work has been reported on the integration of acquisition management under government subsidy in CLSC.

5. Conclusions

This paper tries to present a comprehensive literature review of recent and state-of-the art papers in acquisition management considering vast numbers of publication in different scientific and conference proceedings, journals in remanufacturing and CLSC. In this research, two books and nearly 100 journal publications were selected, reviewed and analysed between year 2000 and 2014 to find the future directions and opportunities of research in acquisition management. The gaps in literature are identified and discussed to highlight the future research opportunities for the authors.

It is observed from the study that publication on CLSC is gradually increasing over the years, but research on acquisition management area has started only after 2006 and is still in its infancy state. Here, content analysis is used to analyse various dimensions of CLSC. One of the major dimensions of CLSC is acquisition management activity. The review shows that current researchers are focusing on devising pricing policies to attract used products from customers. Therefore, the challenge to the decision-makers in CLSC is to design the system in such a way that used product are received in expected time, quantity and price. At the same time, remanufacturing can be done more economically and in an environment-friendly situation as compared to the production of new products. Lastly, we have given some future directions of research from acquisition management perspective with other related activities such as pricing policy, method of collection and production planning and control.

Disclosure statement

No potential conflict of interest was reported by the authors.

References

  • Al-Mashari, M., and M. Zairi. 2000. “Supply-chain Re-Engineering Using Enterprise Resource Planning (ERP) Systems: An Analysis of a SAP R/3 Implementation Case.” International Journal of Physical Distribution & Logistics Management 30 (3–4): 296–313. doi:10.1108/09600030010326064.
  • Aras, N., and D. Aksen. 2008. “Locating Collection Centers for Distance and Incentive Dependent Returns.” International Journal of Production Economics 111 (2): 316–333. doi:10.1016/j.ijpe.2007.01.015.
  • Atasu, A., L. B. Toktay, and L. N. Van Wassenhove. 2013. “How Collection Cost Structure Drives a Manufactuer’s Reverse Channel Choice.” Production and Operations Management 22 (5): 1089–1102. doi:10.1111/j.1937-5956.2012.01426.x.
  • Bakal, I. S., and E. Akcali. 2006. “Effect of Random Yield in Remanufacturing with Price Sensitivity Supply and Demand.” Production and Operations Management 15 (3): 407–20. doi:10.1111/j.1937-5956.2006.tb00254.x.
  • Bernstein, F., and A. Federgruen. 2005. “Decentralized Supply Chains with Competing Retailers under Demand Uncertainty.” Management Science 51 (1): 18–29. doi:10.1287/mnsc.1040.0218.
  • Bulmus, S. C., S. X. Zhu, and R. Teunter. 2014. “Competition for Cores in Remanufacturing.” European Journal of Operational Research 233 (1): 105–113. doi:10.1016/j.ejor.2013.08.025.
  • Chen, J., and P. C. Bell. 2011. “Coordinating a Decentralized Supply Chain with Customer Returns and Price-dependent Stochastic Demand Using a Buyback Policy.” European Journal of Operational Research 212 (2): 293–300. doi:10.1016/j.ejor.2011.01.036.
  • Chen, J. M., and C. I. Chang. 2012. “The Economics of a Closed-Loop Supply Chain with Remanufacturing." ​Journal of the Operational Research Society 63 (10): ​1323–1335. ​doi:10.1057/jors.2011.142.
  • Cheng, W. U. 2013. “OEM Product Design in a Price Competition with Remanufactured Product.” Omega 41 (2): 287–298. doi:10.1016/j.omega.2012.04.004.
  • Cohen, C. M., R. Lobel, and G. Perakis. 2015. “The Impact of Demand Uncertainty on Consumer Subsidies for Green Technology Adoption.” Management Science: 1–22. doi:10.2139/ssrn.2376662.
  • Debo, L., L. Beril Toktay, and L. N. Van Wassenhove. 2005. “Market Segmentation and Product Technology Selection for Remanufacturable Products.” Management Science 51 (8): 1193–1205. doi:10.1287/mnsc.1050.0369.
  • Dekker, R., M. Fleischman, K. Inderfurth, and L. N. Van Wassenhove. 2004. Reverse Logistics. Berlin: Springer.10.1007/978-3-540-24803-3
  • Dowlatshahi, S. 2000. “Developing a Theory of Reverse Logistics.” Interfaces 30 (3): 143–155. doi:10.1287/inte.30.3.143.11670.
  • Ferguson, M., and L. Toktay. 2006. “The Effect of Competition on Recovery Strategies.” Production and Operations Management 15 (3): 351–368. doi:10.1111/j.1937-5956.2006.tb00250.x.
  • Ferrer, G. 2003. “Yield Information and Supplier Responsiveness in Remanufacturing Operations.” European Journal of Operational Research 149 (3): 540–556. doi:10.1016/S0377-2217(02)00454-X.
  • Ferrer, G., and J. Swaminathan. 2006. “Managing New and Remanufactured Products.” Management Science 52 (1): 15–26. doi:10.1287/mnsc.1050.0465.
  • Fleischmann, M., R. Kuik, and R. Dekker. 2002. “Controlling Inventories with Stochastic Item Returns: A Basic Model.” European Journal of Operational Research 138 (1): 63–75. doi:10.1016/S0377-2217(01)00100-X.
  • Fleischmann, M., and R. Kuik. 2003. “On Optimal Inventory with Stochastic Item Returns.” European Journal of Operational Research 151 (1): 25–37. doi:10.1016/S0377-2217(02)00592-1.
  • French, M. L., and R. L. LaForge. 2006. “Closed-loop Supply Chains in Process Industries: An Empirical Study of Producer Re-use Issues.” Journal of Operations Management 24 (3): 271–286. doi:10.1016/j.jom.2004.07.012.
  • Galbreth, M. R., and J. D. Blackburn. 2006. “Optimal Acquisition and Sorting Policies for Remanufacturing.” Production and Operations Management 15 (3): 384–392. doi:10.1111/j.1937-5956.2006.tb00252.x.
  • Galbreth, M. R., and J. D. Blackburn. 2010. “Optimal Acquisition Quantities in Remanufacturing with Condition Uncertainty.” Production and Operations Management 19 (1): 61–69. doi:10.1111/j.1937-5956.2009.01067.x.
  • Giuntini, R., and K. Gaudette. 2004. “Remanufacturing: The Next Great Opportunity for Boosting US Productivity.” Business Horizons 46 (6): 41–48. doi:10.1016/S0007-6813(03)00087-9.
  • Govindan, K., H. Soleimani, and D. Kannan. 2014. “Reverse Logistics and Closed-loop Chain: A Comprehensive Review to Explore the Future.” European Journal of Operational Research 240 (3): 603–626. doi:10.1016/j.ejor.2014.07.012.
  • Gu, Q. L., and T. G. Gao. 2012. “Management of Two Competitive Closed-loop Supply Chains.” International Journal of Sustainability Engineering 5 (4): 1–13. doi:10.1080/19397038.2012.718808.
  • Guide, V. 2000. “Production Planning and Control for Remanufacturing: Industry Practice and Research Needs.” Journal of Operations Management 18 (4): 467–483. doi:10.1016/S0272-6963(00)00034-6.
  • Guide, V. Daniel R., V. Jayaraman, R. Srivastava, and W. Benton. 2000. “Supply-chain Management for Recoverable Manufacturing Systems.” Interfaces 30 (3): 125–142. doi:10.1287/inte.30.3.125.11656.
  • Guide, J. V. D. R., R. H. Teunter, and L. N. Van Wassenhove. 2003. “Matching Demand and Supply to Maximize Products from Remanufacturing.” Manufacturing & Service Operations Management 5: 303–16. doi:10.1287/msom.5.4.303.24883.
  • Guide, J. V. D. R., and L. N. Van Wassenhove. 2001. “Managing Product Returns for Remanufacturing.” Production and Operations Management 10 (2): 142–155. doi:10.1111/j.1937-5956.2001.tb00075.x.
  • Guide, V. Daniel R., and L. N. Van Wassenhove. 2009. “Or Forum – The Evolution of Closed-loop Supply Chain Research.” Operations Research 57 (1): 10–18. doi:10.1287/opre.1080.0628.
  • Hermansson, H., and E. Sundin. 2005. “Managing the Remanufacturing Organization for an Optimal Product Life Cycle.” Fourth International Symposium on Environmentally Conscious Design and Inverse Manufacturing, Eco Design 146–153. doi:10.1109/ECODIM.2005.1619191.
  • Hong, I-Hsuan, and Jun-Sheng Yeh. 2012. “Modeling Closed-loop Supply Chains in the Electronics Industry: A Retailer Collection Application.” Transportation Research Part E: Logistics and Transportation Review 48 (4): 817–829. doi:10.1016/j.tre.2012.01.006.
  • Inderfurth, K. 2004. “Optimal Policies in Hybrid Manufacturing/Remanufacturing Systems with Product Substitution.” International Journal of Production Economics 90 (3): 325–343. doi:10.1016/S0925-5273(02)00470-X.
  • Inderfurth, K. 2005. “Impact of Uncertainties on Recovery Behavior in a Remanufacturing Environment.” International Journal of Physical Distribution and Logistics Management 35 (5): 318–336. doi:10.1108/09600030510607328.
  • Jayaraman, V. 2006. “Production Planning for Closed-loop Supply Chains with Product Recovery and Reuse: An Analytical Approach.” International Journal of Production Research 44 (5): 981–998. doi:10.1080/00207540500250507.
  • Jena, S., and S. P. Sarmah. 2014a. “Optimal Acquisition Price Management in a Remanufacturing System.” International Journal of Sustainable Engineering 7 (2): 154–170. doi:10.1080/19397038.2013.811705.
  • Jena, S., and S. P. Sarmah. 2014b. “Price Competition and Co-operation in a Duopoly Closed-loop Supply Chain.” International Journal of Production Economics 156 (1): 346–360. doi:10.1016/j.ijpe.2014.06.018.
  • Jung, K. S., and H. Hwang. 2011. “Competition and Cooperation in a Remanufacturing System with Take-back Requirement.” Journal of Intelligent Manufacturing 22 (3): 427–433. doi:10.1007/s10845-009-0300-z.
  • Kaya, O. 2010. “Incentive and Production Decisions for Remanufacturing Operations.” European Journal of Operational Research 201 (2): 442–453. doi:10.1016/j.ejor.2009.03.007.
  • Ketzenberg, M., E. Van der Laan, and R. Teunter. 2006. “Value of Information in Closed-loop Supply Chains.” Production and Operations Management 15 (3): 393–406. doi:10.1111/j.1937-5956.2006.tb00253.x.
  • Kiesmuller, G. P., S. Minner, and R. Kleber. 2004. “Managing Dynamic Product Recovery: An Optimal Control Perspective.” Chapter 9. In Reverse Logistics – Quantitative Models for Closed-loop Supply Chains, edited by R. Dekker, M. Fleischmann, K. Inderfurth, and L. Van Wassenhove, 221–247. Springer: Springer Berlin Heidelberg.
  • Klausner, M., and C. T. Hendrickson. 2000. “Reverse logistics strategy for product take-back.” Interfaces 30 (3): 156–165. doi:10.1287/inte.30.3.156.11657.
  • Ko, H., and G. Evans. 2007. “A Genetic Algorithm-based Heuristic for the Dynamic Integrated Forward/Reverse Logistics Network for 3PLs.” Computers & Operations Research 34 (2): 346–366. doi:10.1016/j.cor.2005.03.004.
  • Koh, S. G., H. Hwang, K. I. Sohn, and C. S. Ko. 2002. “An Optimal Ordering and Recovery Policy for Reusable Items.” Computers & Industrial Engineering 43 (1): 59–73. doi:10.1016/S0360-8352(02)00062-1.
  • Krumwiede, D. W., and C. Sheu. 2002. “A Model for Reverse Logistics Entry by Third-Party Providers.” Omega 30 (5): 325–333. doi:10.1016/S0305-0483(02)00049-X.
  • Li, X., and Y. Li. 2011. “Supply Chain Models with Active Acquisition and Remanufacturing.” In Supply Chain Coordination under Uncertainty International Handbooks on Information Systems, edited by T.-M. Choi and T. C. Edwin Cheng, 109–128. Berlin: Springer-Verlag. doi:10.1007/978-3-642-19257-9_5.
  • Li, X., Y. Li, and S. Saghafian. 2013. “A Hybrid Manufacturing/Remanufacturing System with Random Remanufacturing Yield and Market-driven Product Acquisition.” IEEE Transactions on Engineering Management 60 (2): 424–437. doi:10.1109/TEM.2012.2215873.
  • Liang, Y., S. Pokharel, and G. H. Lim. 2009. “Pricing Used Products for Remanufacturing.” European Journal of Operational Research 193 (2): 390–395. doi:10.1016/j.ejor.2007.11.029.
  • Ma, W. M., Z. Zhao, and H. Ke. 2013. “Dual-Channel Closed-loop Supply Chain with Government Consumption-Subsidy.” European Journal of Operational Research 226 (2): 221–227. doi:10.1016/j.ejor.2012.10.033.
  • Mahajan, S., and Garrett van Ryzin. 2001. “Stocking Retail Assortments under Dynamic Consumer Substitution.” Operations Research 49 (3): 334–351. doi:10.1287/opre.49.3.334.11210.
  • Majumder, P., and H. Groenevelt. 2001. “Competition in Remanufacturing.” Production and Operations Management 10 (2): 125–141. doi:10.1111/j.1937-5956.2001.tb00074.x.
  • Marasco, A. 2008. “Third-Party Logistics: A Literature Review.” International Journal of Production Economics 113 (1): 127–147. doi:10.1016/j.ijpe.2007.05.017.
  • Meade, L., and Sarkis, J. 2002. “A Conceptual Model for Selecting and Evaluating Third‐party Reverse Logistics Providers.“ Supply Chain Management: An International Journal 7 (5): 283–295. doi:org/10.1108/13598540210447728.
  • Michaud, M., and D.​ Llerena. 2011. “​Green Consumer Behaviour: An Experimental Analysis of Willingness to Pay for Remanufactured Products.” ​Business Strategy and the Environment 20 (6): 408–420. doi:​10.1002/bse.703.
  • Minner, S., and G. P. Kiesmuller. 2013. “Dynamic Product Acquisition in Closed Loop Supply Chains.” International Journal of Production Research 50 (11): 2836–2851. doi:10.1080/00207543.2010.539280.
  • Mitra, S. 2007. “Revenue Management for Remanufactured Products.” Omega 35 (5): 553–562. doi:10.1016/j.omega.2005.10.003.
  • Mitra, S. 2015. “Optimal Pricing and Core Acquisition Strategy for a Hybrid Manufacturing/Remanufacturing System.” International Journal of Production Research 54 (4): 1285–1302. doi:10.1080/00207543.2015.1067376.
  • Nakashima, K., H. Arimitsu, T. Nose, and S. Kuriyama. 2002. “Analysis of a Product Recovery System.” International Journal of Production Research 40 (15): 3849–3856. doi:10.1080/00207540210132706.
  • Ovchinnikov, A. 2011. “Revenue and Cost Management for Remanufactured Products.” Production and Operations Management 20 (6): 824–840. doi:10.1111/j.1937-5956.2010.01214.x.
  • Ozkir, V., and H. Basligil. 2012. “Modeling Product Recovery in Closed-loop Supply Chain Network Design.” International Journal of Production Research 50 (8): 218–233. doi:10.1080/00207543.2011.575092.
  • Pishvaee, M. S. S., and S. A. Torabi. 2010. “A Possibilistic Programming Approach for Closed-Loop Supply Chain Network Design under Uncertainty.” Fuzzy Sets and Systems 161 (20): 2668–2683. doi:10.1016/j.fss.2010.04.010.
  • Pokhrel, S., and A. Mutha. 2009. “Perspective in Reverse Logistics: A Review.” Resource, Conservation and Recycling 53 (4): 172–182. doi:10.1016/j.resconrec.2008.11.006.
  • Qiang, Q., Ke, A. Ke, Trisha Anderson, and J. Dong. 2013. “The Closed-loop Supply Chain Network with Competition, Distribution Channel Investment, and Uncertainties.” Omega 41 (2): 186–194. doi:10.1016/j.omega.2011.08.011.
  • Qu, X., and J. A. Williams. 2008. “An Analytical Model for Reverse Automotive Production Planning and Pricing.” European Journal of Operational Research 190 (3): 756–767. doi:10.1016/j.ejor.2007.06.041.
  • Ruiz-Benitez, R. R., and A. Muriel. 2014. “Consumer Returns in a Decentralized Supply Chain.” International Journal of Production Economics 147: 573–592. doi:10.1016/j.ijpe.2013.05.010.
  • Savaskan, R. C., Shantanu Bhattacharya, and L. N. Van Wassenhove. 2004. “Closed-Loop Supply Chain Models with Product Remanufacturing.” Management Science 50 (2): 239–252. doi:10.1287/mnsc.1030.0186.
  • Savaskan, R. C., and L. N. Van Wassenhove. 2006. “Reverse Channel Design: The Case of Competing Retailers.” Management Science 52 (1): 1–14. doi:10.1287/mnsc.1050.0454.
  • Schultmann, F., M. Zumkeller, and O. Rentz. 2006. “Modeling Reverse Logistic Tasks within Closed-loop Supply Chains: An Example from the Automotive Industry.” European Journal of Operational Research 171 (3): 1033–1050. doi:10.1016/j.ejor.2005.01.016.
  • Sheu, J. B. 2008. “Green Supply Chain Management, Reverse Logistics and Nuclear Power Generation.” Transportation Research Part E: Logistics and Transportation Review 44 (1): 19–46. doi:10.1016/j.tre.2006.06.001.
  • Sheu, J. B., and Y. J. Chen. 2012. “​Impact of Government Financial Intervention on Competition Among Green Supply Chains.” ​International Journal of Production Economics 138 ( 1)​: 114–135. doi:​10.1016/j.ijpe.2012.03.024.
  • Shi, J., G. Zhang, and J. Sha. 2011a. “Optimal Production and Pricing Policy for a Closed Loop System.” Resources, Conservation and Recycling 55: 639–647. doi:10.1016/j.resconrec.2010.05.016.
  • Shi, J., and G. Zhang, and J. Sha. 2011b. “Optimal Production Planning for a Multi-Product Closed Loop System with Uncertain Demand and Return.” Computers and Operations Research 38 (3): 641–650. doi:10.1016/j.cor.2010.08.008.
  • Souza, G. C. 2013. “Closed-loop Supply Chains: A Critical Review, and Future Research.” Decision Sciences 44 (1): 7–38. doi:10.1111/j.1540-5915.2012.00394.x.
  • Teunter, R. H., and S. D. P. Flapper. 2011. “Optimal Core Acquisition and Remanufacturing Policies under Uncertain Core Quality Fractions.” European Journal of Operations Research 210 (2): 241–248. doi:10.1016/j.ejor.2010.06.015.
  • Toktay, L. B., and D. Wei. 2011. “Cost Allocation in Manufacturing-Remanufacturing Operations.” Production and Operations Management 20 (6): 841–847. doi:10.1111/j.1937-5956.2011.01236.x.
  • Vadde, S., S. Kamarthi, and S. Gupta. 2007. “Optimal Pricing of Reusable and Recyclable Components under Alternative Product Acquisition Mechanisms.” International Journal of Production Research 45 (18–19): 4621–4652. doi:10.1080/00207540701449973.
  • Webster, S., and S. Mitra. 2007. “Competitive Strategy in Remanufacturing and the Impact of Take Back Laws.” Journal of Operations Management 25 (6): 1123–1140. doi:10.1016/j.jom.2007.01.014.
  • Wei, J., and G. Kannan, Y. Li, and J. Zhao. 2013. “Pricing and Collecting Decisions in a Closed-loop Supply Chain with Symmetric and Asymmetric Information.” Computers and Operations Research 54: 257–265. doi:10.1016/j.cor.2013.11.021i.
  • Wei, J., and J. Zhao. 2013. “Reverse Channel Decisions for a Fuzzy Closed-loop Supply Chain.” Applied Mathematical Modelling 37 (3): 1502–1513. doi:10.1016/j.apm.2012.04.003.
  • Wojanowski, R., V. Verter, and T. Boyaci. 2007. “Retail-Collection Network Design under Deposit Refund.” Computers and Operations Research 34 (2): 324–345. doi:10.1016/j.cor.2005.03.003.
  • Wu, C. H. 2012. “Price and Service Competition between New and Remanufactured Products in a Two-Echelon Supply Chain.” International Journal of Production Economics 140 (1): 496–507. doi:10.1016/j.ijpe.2012.06.034.
  • Xiong, Y., and G. Li. 2012. “The Value of Dynamic Pricing for Cores in Remanufacturing with Backorders.” Journal of the Operational Research Society 64: 1314–1326. doi:10.1057/jors.2012.124.
  • Zhou, L., M. Naim, O. Tang, and D. Towill. 2006. “Dynamic Performance of a Hybrid Inventory System with a Kanban Policy in Remanufacturing Process.” Omega 34 (6): 585–598. doi:10.1016/j.omega.2005.01.007.
  • Zikopoulos, C., and G. Tagaras. 2007. “Impact of Uncertainty in the Quality of Returns on the Profitability of a Single-Period Refurbishing Operation.” European Journal of Operational Research 182 (1): 205–225. doi:10.1016/j.ejor.2006.10.025.
  • Zu-Jun M., N. Zhang, Y. Dai, and H. Shu. 2015. “Managing Channel Profits of Different Cooperative Models in Closed-loop Supply Chains.” Omega 59 (B): 251–262. doi:10.1016/j.omega.2015.06.013.

Appendix A.

Review protocol.

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.