EconPapers    
Economics at your fingertips  
 

Analysis of the Value of Information and Coordination in a Dyadic Closed Loop Supply Chain

Juan Pedro Sepúlveda-Rojas () and Rodrigo Ternero ()
Additional contact information
Juan Pedro Sepúlveda-Rojas: Industrial Engineering Department, Universidad de Santiago de Chile, Santiago CP 7254758, Chile
Rodrigo Ternero: Industrial Engineering Department, Universidad de Santiago de Chile, Santiago CP 7254758, Chile

Sustainability, 2020, vol. 12, issue 20, 1-18

Abstract: Purpose: This article analyzes the value of information and coordination in a closed loop supply chain (CLSC) and discusses the benefits of a global or local optimization approach and the impact of uncertainty. Methodology: A theoretical dyadic closed loop supply chain is analyzed where the manufacturer re-manufactures products returned by customers, producing “as good as new products” for the retailer. Twelve coordination scenarios were analyzed. For the definition of these scenarios, a framework based on two criteria was proposed: value of information and perimeter of decision making. Findings: Information on returns leads to lower costs than information on demand. In the presence of complete or partial coordination between the actors in the supply chain, it is preferable to have low product return rates. However, if we are in the complete absence of coordination, high rates of return are more convenient as they function as a buffer against uncertainties. The perimeter of decision making (global or local optimization) does not significantly improve the supply chain performance in relation to its costs. Only the exchange of information improves its performance. Therefore, companies should make efforts to exchange information, first, on their lot sizes, then on their returns and finally, on the customer demand. Originality: The novelty of our work relies on an analysis of the closed loop supply chain performance with the simultaneous presence of information, coordination, and uncertainty.

Keywords: value of information; closed loop supply chains; reverse logistics; coordination; uncertainty (search for similar items in EconPapers)
JEL-codes: Q Q0 Q2 Q3 Q5 Q56 O13 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www.mdpi.com/2071-1050/12/20/8398/pdf (application/pdf)
https://www.mdpi.com/2071-1050/12/20/8398/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:12:y:2020:i:20:p:8398-:d:426825

Access Statistics for this article

Sustainability is currently edited by Prof. Dr. Marc A. Rosen

More articles in Sustainability from MDPI, Open Access Journal
Bibliographic data for series maintained by XML Conversion Team ().

 
Page updated 2021-03-11
Handle: RePEc:gam:jsusta:v:12:y:2020:i:20:p:8398-:d:426825