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837. Closed-loop Supply Chain Network Model with Recycling, Re-manufacturing, Refurbishing, and Corporate Social Responsibility

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Authors (first author is the speaker)

1. Jose Cruz
Operations and Information Management, University of Connecticut

Abstract

This paper developed a closed-loop supply chain network (CLSCN) optimization model with corporate social responsibility (CSR), recycling, remanufacturing, refurbishing, and transaction cost on a supply chain consisting of manufacturers, retailers, a new product demand market, and a retailer-refurbished product demand market. The manufacturers produce substitutable products using raw materials from two sources, new and
recycled. The retailers, in turn, face the demands of new products and retailer refurbished products, and recycle from the new product demand market. We investigated a number of cases to analyze the impacts of 1) CSR; 2) new materials and landfill costs; 3) return rate and return cost; 4) remanufacturing rate; and 5) competition on the CLSCN. Our results indicate that CSR can enhance CLSCN performance but more to the party closest to the demand market. It also shows that consumer behaviors and environmental costs, such as the landfill cost, play an essential role in CSR and closing the loop. Policymakers can use these findings to encourage firms to improve CSR in CLSCN.

Keywords

Status: accepted


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