Impact of product-design strategies on the operations of a closed-loop supply chain. (April 2019)

• Record Type: Journal Article
• Authors: Liu, Zhi; Li, Kevin W.; Li, Bang-Yi; Huang, Jun; Tang, Juan
• Is Part Of: Transportation research. Volume 124(2019)
• Page Start: 75
• Page End: 91
• Publication Date: 2019-04
• Subjects: Product-design strategy -- Closed-loop supply chain -- Remanufacturing -- Environmental impact; Logistics -- Periodicals; Transportation -- Periodicals; 388.011
• DOI: 10.1016/j.tre.2019.02.007
• Languages: English
• ISSNs: 1366-5545

Abstract

Highlights: We investigate product design and its impact on the operations of a two-echelon closed-loop supply chain. Adjusting product-design strategies helps to curb profit loss due to remanufacturing. Cost implications of product design affect economic performance. Environmental impact can be mitigated by product design under certain conditions. Abstract: This study investigates product design and its impact on the operations of a two-echelon closed-loop supply chain (CLSC). Research findings reveal that remanufacturing does not necessarily enhance the profitability of the supplier or the manufacturer, but adjusting product-design strategies helps to curb loss if profitability suffers. An environmental impact analysis identifies an interval for the base unit remanufacturing cost, within which remanufacturing is beneficial. We then obtain the condition under which the environmental impact can be mitigated by product design. These results shed insights for supply chain managers in their operational decisions and policy-makers in properly regulating remanufacturing activities.