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2574. The impact of supply shortage and uncertainty on product design for remanufacturing in a closed-loop supply chain

Invited abstract in session TD-23: Remanufacturing and refurbishing operations, stream Circular Economy, Remanufacturing and Recycling .

Tuesday, 14:30-16:00
Room: 82 (building: 116)

Authors (first author is the speaker)

1. Tanja Mlinar
IESEG School of Management, Univ. Lille, CNRS, UMR 9221 - LEM - Lille Economie Management
2. Maud Van den Broeke
Operations and Supply Chain Management, Ieseg School of Management
3. Roya Tat
ESC Clermont Business School & CleRMa

Abstract

Nowadays, companies are increasingly confronted with shortages and uncertainty in supply of raw materials. At the same time, in light of sustainability, supply chains are increasingly interested in returning used products from customers and remanufacturing them. We develop an analytical model in a closed-loop supply chain context to study how shortages and uncertainty in supply impact different supply chain decisions. We focus on a supply chain with a (re)manufacturer and collector as decision-makers. The manufacturer offers products (produced from scratch or through re-manufacturing) and then sells them to the customers (i.e., forward flow). They also make product design investment decisions which affect remanufacturing costs, and set the products’ selling prices. The collector incentivizes consumers to return used products, collects them (i.e., return flow), and sells them to the (re)-manufacturer who uses them for the purpose of remanufacturing. We provide managers with insights on these decisions under a decentralized and centralized setting under supply shortage and uncertainty, and conduct a sensitivity analysis with respect to various parameters.

Keywords

Status: accepted

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