Skip to main content
SpringerLink
Log in

Closed Loop Supply Chain Management

  • Chapter
  • First Online:
Book cover Operations, Logistics and Supply Chain Management

Part of the book series: Lecture Notes in Logistics ((LNLO))

Abstract

This chapter provides an overview of concepts within the field of closed loop supply chain management. First, using some qualitative frameworks we categorize and characterize the many different closed loop supply chains that are found in practice. Then, we identify key processes and potential bottlenecks that need to be addressed for efficient and effective management. Several modeling approaches are presented, moving from very basic via more advanced to state-of-the-art models that make complex trade-offs and generate more refined insights. The mathematical models presented are meant as simple illustrations of broader concepts. Hence, this chapter is certainly not meant as a comprehensive review of the logistics and operations management literature within the field. Rather, we hope that it can inspire newcomers to the field and specialists who would like to broaden their view.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 129.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 169.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 249.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Notes

  1. 1.

    World Copper Factbook 2013, International Copper Study Group, p. 50.

  2. 2.

    The global E-waste monitor 2014, United Nations University, pp. 22–23.

  3. 3.

    According to the United States Environmental Protection Agency (EPA) it takes 39,090 gallons (EPA report 810-F-95-001, 1995).

  4. 4.

    M. Berners-Lee and D. Clark in The guardian “What’s the carbon footprint of ... a new car?”, 23 September 2010.

  5. 5.

    r = 0 indicates ‘recycling’ for which demand is assumed infinite.

References

  • Abdallah T, Diabat A, Simchi-Levi D (2012) Sustainable supply chain design: a closed-loop formulation and sensitivity analysis. Prod Plan Control 23(2–3):120–133

    Article  Google Scholar 

  • Agrawal S, Singh RK, Murtaza Q (2015a) A literature review and perspectives in reverse logistics. Resour Conserv Recycl 97:76–92

    Article  Google Scholar 

  • Agrawal VV, Atasu A, Van Ittersum K (2015b) Remanufacturing, third-party competition, and consumers’ perceived value of new products. Manag Sci 61(1):60–72

    Article  Google Scholar 

  • Aras N, Boyaci T, Verter V (2004) The effect of categorizing returned products in remanufacturing. IIE Trans 36(4):319–331

    Article  Google Scholar 

  • Aras N, Verter V, Boyaci T (2006) Coordination and priority decisions in hybrid manufacturing/remanufacturing systems. Prod Oper Manag 15(4):528–543

    Article  Google Scholar 

  • Asl-Najafi J, Zahiri B, Bozorgi-Amiri A, Taheri-Moghaddam A (2015) A dynamic closed-loop location-inventory problem under disruption risk. Comput Ind Eng 90:414–428

    Article  Google Scholar 

  • Atasu A, Sarvary M, Van Wassenhove LN (2008) Remanufacturing as a marketing strategy. Manag Sci 54(10):1731–1746

    Article  Google Scholar 

  • Bayındır ZP, Erkip N, Güllü R (2005) Assessing the benefits of remanufacturing option under one-way substitution. J Oper Res Soc 56:286–296

    Article  Google Scholar 

  • Bayındır ZP, Erkip N, Güllü R (2007) Assessing the benefits of remanufacturing option under one-way substitution and capacity constraint. Comput Oper Res 34:487–514

    Article  Google Scholar 

  • Blackburn JD, Guide VDR Jr, Souza GC, Van Wassenhove LN (2004) Reverse supply chains for commercial returns. Calif Manag Rev 46(2):6–22

    Article  Google Scholar 

  • Çorbacıoğlu U, van der Laan EA (2013) A quality framework in closed loop supply chains: opportunities for value creation. In: Nikolaidis Y (ed) Quality management in reverse logistics. Springer-Verlag London

    Google Scholar 

  • Das K, Chowdhury AH (2012) Designing a reverse logistics network for optimal collection, recovery and quality-based product-mix planning. Int J Prod Econ 135(2):209–221

    Google Scholar 

  • de Brito MP, Dekker R (2004) A framework for reverse logistics. In: Dekker R, Fleischmann M, Inderfurth K, Van Van Wassenhove LN (eds) Reverse logistics: quantitative models in closed-loop supply chains. Springer

    Google Scholar 

  • de Brito MP, van der Laan EA (2009) Inventory control with product returns: the impact of imperfect information. Eur J Oper Res 194:85–101

    Article  Google Scholar 

  • Dekker R, van der Laan E (2003) Inventory control in reverse logistics. In: Guide VDR, Van Wassenhove LN (eds) Business aspects of closed-loop supply chains: exploring the issues. Carnegie Mellon University Press

    Google Scholar 

  • Ferguson M, Toktay B (2006) The effect of competition on recovery strategies. Prod Oper Manag 15(3):351–368

    Article  Google Scholar 

  • Ferrer G, Swaminathan JM (2006) Managing new and remanufactured products. Manag Sci 52(1):15–26

    Article  Google Scholar 

  • Fleischmann M (2003) Reverse logistics network structures and design. In: Guide VDR, Van Wassenhove LN (eds) Business aspects of closed-loop supply chains: exploring the issues. Carnegie Mellon University Press

    Google Scholar 

  • Fleischmann M, Kuik R (2002) Controlling inventories with stochastic item returns: a basic model. Eur J Oper Res 138:63–75

    Google Scholar 

  • Fleischmann M, Kuik R (2003) On optimal inventory control with independent stochastic item returns. Eur J Oper Res 151(1):25–37

    Article  MathSciNet  Google Scholar 

  • Goh TN, Varaprasad N (1986) A statistical methodology for the analysis of the life-cycle of reusable containers. IEE Trans 18:42–47

    Article  Google Scholar 

  • Govindan K, Soleimani H, Kannan D (2015) Reverse logistics and closed-loop supply chain: a comprehensive review to explore the future. Eur J Oper Res 240:603–626

    Article  MathSciNet  Google Scholar 

  • Guarnieri P, Amorim Sobreiro V, Seido Nagano M, Marques Serrano AL (2015) The challenge of selecting and evaluating third-party reverse logistics providers in a multicriteria perspective: a Brazilian case. J Clean Prod 96:209–219

    Article  Google Scholar 

  • Inderfurth K (1997) Simple optimal replenishment and disposal policies for a product recovery system with leadtimes. OR Spektrum 19(2):111–122

    Article  MathSciNet  Google Scholar 

  • Inderfurth K, Teunter RH (2003) Production planning and control of closed loop supply chains. In: Guide VDR, Van Wassenhove LN (eds) Business aspects of closed-loop supply chains: exploring the issues. Carnegie Mellon University Press

    Google Scholar 

  • Kaya O, Urek B (2016) A mixed integer nonlinear programming model and heuristic solutions for location, inventory and pricing decisions in a closed loop supply chain. Comput Oper Res 65:93–103

    Article  MathSciNet  Google Scholar 

  • Kelle P, Silver EA (1989) Forecasting the returns of reusable containers. J Oper Manag 8(1):17–35

    Article  Google Scholar 

  • Kiritsis D (2011) Closed-loop PLM for intelligent products in the era of the Internet of things. Comput Aided Design 43:479501

    Article  Google Scholar 

  • Kirsner S (2014) Market burgeons for pre-owned smartphones. Boston Globe. https://www.bostonglobe.com/business/2014/07/05/emerging-market-for-pre-owned-certified-smartphones/fFJPIs0AfTymQw1MhrgMYP/story.html

  • Klausner M, Hendrickson CT (1998) Reuse of electric motors in consumer products—design and analysis of an electronic data log. Interfaces 30:156–165

    Article  Google Scholar 

  • Loomba APS, Nakashima K (2012) Enhancing value in reverse supply chains by sorting before product recovery. Prod Plan Control 23(2–3):205–215

    Article  Google Scholar 

  • Lyons Hardcastle J (2014) Gazelle pays $200 m for used electronic devices. Environ Lead. https://www.environmentalleader.com/2014/11/gazelle-pays-200m-for-used-electronic-devices/

  • Marx-Gomez J, Rautenstrauch C, Nurnberger A, Kruse R (2002) Neuro-fuzzy approach to forecast returns of scrapped products to recycling and remanufacturing. Knowl Based Syst 15(1–2):119–128

    Google Scholar 

  • Matsumoto M, Komatsu S (2015) Demand forecasting for production planning in remanufacturing. Int J Adv Manuf Technol 79:161–175

    Article  Google Scholar 

  • Minner S, Kleber R (2001) Optimal control of production and remanufacturing in a simple recovery model with linear cost functions. Or Spektrum 23(1):3–24

    Google Scholar 

  • Mota B, Gomes MI, Carvalho A, Barbosa-Povoa AP (2015) Towards supply chain sustainability: economic, environmental and social design and planning. J Clean Prod 105:14–27

    Article  Google Scholar 

  • Muckstadt JA, Isaac MH (1981) An analysis of single item inventory system with returns. Naval Res Logistics Q 28:237–254

    Google Scholar 

  • Ovchinnikov A (2011) Revenue and cost management for remanufactured products. Prod Oper Manag 20(6):824–840

    Article  Google Scholar 

  • Richter K (1996) The EOQ repair and waste disposal model with variable setup numbers. Eur J Oper Res 95(11):1412–1426

    Google Scholar 

  • Richter K, Sombrutzki M (2000) Remanufacturing planning for the reverse Wagner/Whitin models. Eur J Oper Res 121(2):304–315

    Article  Google Scholar 

  • Schenkel M, Caniëls MCJ, Krikke H, van der Laan E (2015) Understanding value creation in closed loop supply chains Past findings and future directions. J Manuf Syst 37:729–745

    Google Scholar 

  • Schrady DA (1967) A deterministic inventory model for repairable items. Naval Res Logistics Q 14:391–398

    Google Scholar 

  • Simpson VP (1978) Optimum solution structure for a repairable inventory problem. Oper Res 26(2):270–281

    Article  MathSciNet  Google Scholar 

  • Soysal M (2016) Closed-loop inventory routing problem for returnable transport items. Trans Res Part D: Trans Environ 48:31–45

    Article  Google Scholar 

  • Tagaras G, Zikopoulos C (2008) Optimal location and value of timely sorting of used items in a remanufacturing supply chain with multiple collection sites. Int. J. Prod Econ 115:424–432

    Article  Google Scholar 

  • Teunter RH (2001) Economic ordering quantities for recoverable item inventory systems. Naval Res Logistics 48(6):484–495

    Google Scholar 

  • Toktay LB, Wein LM, Zenios SA (2000) Inventory management of remanufacturable products. Manag Sci 46(11):1412–1426

    Article  Google Scholar 

  • Vahabzadeh AH, Yusuff RBM (2015) A content analysis in reverse logistics: a review. J Stat Manag Syst 18(4):329–379

    Article  Google Scholar 

  • van der Laan E, Salomon M, Dekker R, Van Wassenhove L (1999) Inventory control in hybrid systems with remanufacturing. Manag Sci 45(5):733–747

    Article  Google Scholar 

  • van der Laan EA, Teunter RH (2006) Simple heuristics for push and pull remanufacturing policies. Eur J Oper Res 175:10841102

    MATH  Google Scholar 

Download references

Acknowledgements

Eliane Haseth kindly provided input for the Gazelle and Volkswagen cases.

Author information

Authors and Affiliations

  1. Rotterdam School of Management, Erasmus University, Rotterdam, The Netherlands

    Erwin A. van der Laan

Authors
  1. Erwin A. van der Laan
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Erwin A. van der Laan .

Editor information

Editors and Affiliations

  1. Department of Industrial Engineering and Business Information Systems, University of Twente, Enschede, Overijssel, The Netherlands

    Henk Zijm

  2. FOM University of Applied Sciences, Essen, Nordrhein-Westfalen, Germany

    Matthias Klumpp

  3. Department of Industrial Engineering, University of Bologna, Bologna, Italy

    Alberto Regattieri

  4. Industrial Engineering and Management, Oklahoma State University, Stillwater, OK, USA

    Sunderesh Heragu

Rights and permissions

Reprints and permissions

Copyright information

© 2019 Springer International Publishing AG, part of Springer Nature

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

van der Laan, E.A. (2019). Closed Loop Supply Chain Management. In: Zijm, H., Klumpp, M., Regattieri, A., Heragu, S. (eds) Operations, Logistics and Supply Chain Management. Lecture Notes in Logistics. Springer, Cham. https://doi.org/10.1007/978-3-319-92447-2_16

Download citation

  • DOI: https://doi.org/10.1007/978-3-319-92447-2_16

  • Published:

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-92446-5

  • Online ISBN: 978-3-319-92447-2

  • eBook Packages: EngineeringEngineering (R0)

Publish with us

Policies and ethics

Search

Navigation