Integrated Operational Model of Green Closed-Loop Supply Chain

Chui-Yu Chiu, Chen-Yang Cheng and Ting-Ying Wu
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Chui-Yu Chiu: Department of Industrial Engineering and Management, National Taipei University of Technology, Taipei 10608, Taiwan
Chen-Yang Cheng: Department of Industrial Engineering and Management, National Taipei University of Technology, Taipei 10608, Taiwan
Ting-Ying Wu: Mirle Automation Corporation, Hsinchu 30076, Taiwan

Sustainability, 2021, vol. 13, issue 11, 1-14

Abstract: Due to increasing environmental awareness, companies have started embracing the green supply chain concept to reduce waste of resources. Based on this increased awareness, an integrated green closed-loop supply chain has been developed, which integrates the forward supply chain and reverse supply chain. The reverse supply chain follows the same path as the forward supply chain in the reverse direction to recycle used products. Due to the uncertain quality of used products, not all products can be selected for recycling and reproduction, as the reduced yield might decrease the overall net income in the supply chain. The study develops an evaluation model to consider government subsidy, used product recycling rate, and quality of the used products to explore their impacts on the entire system. The results show that when the reproducibility rate of used raw materials decreases, the net income would also decrease accordingly. Furthermore, when government subsidy increases, the net income of the supply chain also increases accordingly. Similarly, when the recycling rate of used products increases, the net income also increases. As government subsidy affects the net income more than the recycling rate of used products, this research concludes that government subsidy is a key factor in the green closed-loop supply chain.

Keywords: green supply chain management; closed-loop supply chain; integrated operational model (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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