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CLOSED-LOOP SUPPLY CHAINS AND THE CIRCULAR ECONOMY

Inventory Control in Hybrid Systems with Remanufacturing

Published Online:

Management Science

    Abstract
    This paper is on production planning and inventory control in systems where manufacturing and remanufacturing operations occur simultaneously. Typical for these hybridsystems is, that both the output of the manufacturing process and the output of the ...
Inventory Management of Remanufacturable Products

Published Online:

Management Science

    Abstract
    We address the procurement of new components for recyclable products in the context of Kodak's single-use camera. The objective is to find an ordering policy that minimizes the total expected procurement, inventory holding, and lost sales cost. ...
Matching Demand and Supply to Maximize Profits from Remanufacturing

Published Online:

M&SOM

    Abstract
    The profitability of remanufacturing depends on the quantity and quality of product returns and on the demand for remanufactured products. The quantity and quality of product returns can be influenced by varying quality-dependent acquisition prices, i.e., ...
Closed-Loop Supply Chain Models with Product Remanufacturing

Published Online:

Management Science

    Abstract
    The importance of remanufacturing used products into new ones has been widely recognized in the literature and in practice. In this paper, we address the problem of choosing the appropriate reverse channel structure for the collection of used products ...
Optimal Prices and Trade-in Rebates for Durable, Remanufacturable Products

Published Online:

M&SOM

    Abstract
    Most durable products have two distinct types of customers: first-time buyers and customers who already own the product, but are willing to replace it with a new one or purchase a second one. Firms usually adopt a price-discrimination policy by offering a ...
Market Segmentation and Product Technology Selection for Remanufacturable Products

Published Online:

Management Science

    Abstract
    Remanufacturing is a production strategy whose goal is to recover the residual value of used products. Used products can be remanufactured at a lower cost than the initial production cost, but consumers value remanufactured products less than new ...
Optimal Policy for a Multiechelon Inventory System with Remanufacturing

Published Online:

Operations Research

    Abstract
    We analyze a multiechelon inventory system with inventory stages arranged in series. In addition to traditional forward material flows, used products are returned to a recovery facility, where they can be stored, disposed, or remanufactured and shipped to ...
Reverse Channel Design: The Case of Competing Retailers

Published Online:

Management Science

    Abstract
    The economical and environmental benefits of product remanufacturing have been widely recognized in the literature and in practice. In this paper, we focus on the interaction between a manufacturer’s reverse channel choice to collect postconsumer goods ...
Time Value of Commercial Product Returns

Published Online:

Management Science

    Abstract
    Manufacturers and their distributors must cope with an increased flow of returned products from their customers. The value of commercial product returns, which we define as products returned for any reason within 90 days of sale, now exceeds $100 billion ...
Managing New and Remanufactured Products

Published Online:

Management Science

    Abstract
    We study a firm that makes new products in the first period and uses returned cores to offer remanufactured products, along with new products, in future periods. We introduce the monopoly environment in two-period and multiperiod scenarios to identify ...
The Economics of Remanufacturing Under Limited Component Durability and Finite Product Life Cycles

Published Online:

Management Science

    Abstract
    This paper models and quantifies the cost-savings potential of production systems that collect, remanufacture, and remarket end-of-use products as perfect substitutes while facing the fundamental supply-loop constraints of limited component durability and ...
Effects of E-Waste Regulation on New Product Introduction

Published Online:

Management Science

    Abstract
    This paper investigates the impact of e-waste regulation on new product introduction in a stylized model of the electronics industry. Manufacturers choose the development time and expenditure for each new version of a durable product, which together ...
OR FORUM—The Evolution of Closed-Loop Supply Chain Research

Published Online:

Operations Research

    Abstract
    The purpose of this paper is to introduce the reader to the field of closed-loop supply chains with a strong business perspective, i.e., we focus on profitable value recovery from returned products. It recounts the evolution of research in this growing ...
Optimal Control of Inventory Systems with Multiple Types of Remanufacturable Products

Published Online:

M&SOM

    Abstract
    Product returns have become a significant feature of many manufacturing systems. Because products are returned under different operational conditions, they usually require different remanufacturing effort/costs. Motivated by a project with a major energy ...
Key Factors in the Market for Remanufactured Products

Published Online:

M&SOM

    Abstract
    Measures to extend the economic lives of products—such as remanufacturing carried out by closed-loop supply chains—are receiving increased attention because of various economic and regulatory factors. In this paper, we examine drivers of price ...
Optimizing Organic Waste to Energy Operations

Published Online:

M&SOM

    Abstract
    A waste-to-energy firm that recycles organic waste with energy recovery performs two environmentally beneficial functions: it diverts waste from landfills and it produces renewable energy. At the same time, the waste-to-energy firm serves and collects ...
Turning Waste into By-Product

Published Online:

M&SOM

    Abstract
    This paper studies how a firm can create and capture value by converting a waste stream into a useful and saleable by-product (i.e., implementing by-product synergy (BPS)). We show that BPS creates an operational synergy between two products that are ...
Relicensing as a Secondary Market Strategy

Published Online:

Management Science

    Abstract
    Secondary markets in the information technology industry, where used or refurbished equipment is traded, have been growing steadily. For original equipment manufacturers (OEMs) in this industry, the importance of secondary markets has grown in parallel, ...
Plant Networks for Processing Recyclable Materials

Published Online:

M&SOM

    Abstract
    We use a modified optimal market area model to examine how links between material recycling and other aspects of operations strategy can shape plant networks for the processing of recyclable materials. We characterize the complementarity of the recyclate ...
Remanufacturing, Third-Party Competition, and Consumers' Perceived Value of New Products

Published Online:

Management Science

    Abstract
    In this paper, we investigate whether and how the presence of remanufactured products and the identity of the remanufacturer influence the perceived value of new products through a series of behavioral experiments. Our results demonstrate that the ...
Efficient Implementation of Collective Extended Producer Responsibility Legislation

Published Online:

Management Science

    Abstract
    Extended producer responsibility (EPR) is a policy tool that holds producers financially responsible for the post-use collection, recycling, and disposal of their products. Many EPR implementations are collective—a large collection and recycling network (...
Extracting Maximum Value from Consumer Returns: Allocating Between Remarketing and Refurbishing for Warranty Claims

Published Online:

M&SOM

    Abstract
    The high cost of lenient return policies force consumer electronics original equipment manufacturers (OEMs) to look for ways to recover value from lightly used consumer returns, which constitute a substantial fraction of sales and cannot be resold as new ...
Inventory Management in a Consumer Electronics Closed-Loop Supply Chain

Published Online:

M&SOM

    Abstract
    The goal of this paper is to describe, model, and optimize inventory in a reverse logistics system that supports the warranty returns and replacements for a consumer electronic device. The context and motivation for this work stem from a collaboration ...
Trade-in Remanufacturing, Customer Purchasing Behavior, and Government Policy

Published Online:

M&SOM

    Abstract
    Trade-in remanufacturing is a commonly adopted business practice under which firms collect used products for remanufacturing by allowing repeat customers to trade in used products for upgraded ones at a discount price. This paper studies how customer ...
Design Incentives Under Collective Extended Producer Responsibility: A Network Perspective

Published Online:

Management Science

    Abstract
    A key goal of Extended Producer Responsibility (EPR) legislation is to provide incentives for producers to design their products for recyclability. EPR is typically implemented in a collective system, where a network of recycling resources are coordinated ...
Environmental Benefits of Internet-Enabled C2C Closed-Loop Supply Chains: A Quasi-Experimental Study of Craigslist

Published Online:

Management Science

    Abstract
    Recently, online matching platforms (e.g., Craigslist, FreeCycle, Gumtree) have enabled consumers to directly connect with each other to buy/sell used consumer goods (electronics, furniture, packaging, etc.) that would have otherwise ended up in the waste ...
Design Implications of Extended Producer Responsibility for Durable Products

Published Online:

Management Science

    Abstract
    We analyze product design implications of extended producer responsibility (EPR)-based take-back legislation on durable goods. In particular, we observe that durable product design incentives under EPR may involve an inherent trade-off that has not been ...
Choice of Electronic Waste Recycling Standard Under Recovery Channel Competition

Published Online:

M&SOM

    Abstract
    Problem definition: We consider two competing electronic waste (e-waste) recovery channels, each of which consists of a collector and a recycler. Collectors obtain donated e-waste and sell the collected items to recyclers or in the secondary market, ...
Extended Producer Responsibility for Durable Products

Published Online:

M&SOM

    Abstract
    Problem definition: We study how extended producer responsibility (EPR) legislation implementations for durable products should differ from those for nondurable products. Academic/practical relevance: Certain unique characteristics of markets for durable ...
Leasing, Modularity, and the Circular Economy

Published Online:

Management Science

    Abstract
    We investigate the economic and environmental implications of jointly implementing leasing and modularity, two prominent circular economy strategies, and their interaction. We develop a durable goods model to obtain insights for firms considering the use ...
New-Product Diffusion in Closed-Loop Supply Chains

Published Online:

M&SOM

    Abstract
    Problem definition: We study the sales planning problem of a producer who sells new and remanufactured versions of a durable good over a finite life cycle. We investigate whether slowing down product diffusion by choosing to partially satisfy demand might ...
Warranty Matching in a Consumer Electronics Closed-Loop Supply Chain

Published Online:

M&SOM

    Abstract
    Problem definition : We examine a dynamic assignment problem faced by a large wireless service provider (WSP) that is a Fortune 100 company. This company manages two warranties: (i) a customer warranty that the WSP offers its customers and (ii) an ...
Online Business-to-Business Markets for Industrial Product Reuse: Evidence from an Operational Policy Change

Published Online:

M&SOM

    Abstract
    Problem definition: We examine the importance of expert services in online materials and waste exchanges (OMWEs), which are online business-to-business markets for coordinating transactions of industrial surplus, by-products, and waste. Academic/practical ...
The Effects of Patent Extension and Take-Back Regulation on Green Pharmacy

Published Online:

M&SOM

    Abstract
    Problem definition: The eco-toxicity arising from unused pharmaceuticals has regulators advocating the benign design concept of “green pharmacy,” but high research and development expenses can be prohibitive. We therefore examine the impacts of two ...
Extended Producer Responsibility for Pharmaceuticals

Published Online:

M&SOM

    Abstract
    Problem definition: We investigate the effectiveness of different extended producer responsibility (EPR) implementation models for pharmaceuticals. In particular, we study two viable and prevalent models: (1) source reduction (SR), where a form of fee on ...
Right to Repair: Pricing, Welfare, and Environmental Implications

Published Online:

Management Science

    Abstract
    The “right-to-repair” (RTR) movement calls for government legislation that requires manufacturers to provide repair information, tools, and parts so that consumers can independently repair their own products with more ease. The initiative has gained ...
A circular economy for salt that keeps rivers clean

TED

Tina Arrowood

Published Online: September 2019

Teaching Case: IKEA: Becoming a Circular Business

Matthew Wilson, Kerstin Heilgenberg

Published Online: June 5, 2023
Ivey Publishing

Teaching Case: EMMA Safety Footwear (A): Designing a Circular Shoe

Andre Calmon, Luk Van Wassenhove, Anne-Marie Carrick, Anne Nai-tien Huang

Published Online: March 9, 2021
INSEAD Publishing

Teaching Case: HP Canada Co.: A Circular Supply Chain for Recycled Plastic

Jury Gualandris, Deishin Lee, Cole Beattie

Published Online: March 19, 2021
Ivey Publishing

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