International Conference on IML 2012
Closed-loop Supply Chain with Remanufacturing:
A Literature Review
Gan Shu San1,2, I Nyoman Pujawan1, and Suparno1
In supporting environmental sustainability, managing product returns has become a very important and challenging issue.
Responding to this trend, researchers in many parts of the
world have conducted numerous studies in reverse logistics
and reverse supply chain, that were considered separately
from the forward channel of supply chains. Meanwhile, there
are opportunities to create added values from product returns and to improve efficiency when both channels are considered
in an integrated way, as a closed loop supply chain. On the
other hand, remanufacturing is a very appealing option
among product recovery processes that has potential to
increase the value of product returns. However, the available literature and theories on closed loop supply chain with
remanufacturing are still limited. This paper aims to provide a literature review that covers closed loop supply chain with
remanufacturing to identify its characteristics based on
previous works in this area. The review methodology is
content analysis, classified into managerial aspects and
technical aspects with their subsequent topics. Related
literatures will be mapped under the abovementioned
structures while identifying other important aspects that have potentials for further study. An outline of research
opportunities will presented as a result of the review.
Keywords: closed-loop supply chain, remanufacturing, review, environmental regulation, profitability.
In a competitive market, manufacturing companies are
struggling to implement the most efficient way in fulfilling market demands. As the environmental issues emerged,
there were compelling needs to respond to natural resources
depletion and enormous waste that went to landfill as well as water and air pollution.. Decade of 1970s was the beginning
of environmental law system in the US, represented by
Environment Protection Agency (EPA) that initially brought up regulations on the amount of pollution or waste that industry can put into the environment . However, these regulations had been viewed as a burden adding up to already complex
manufacturing processes. Extended Producer Responsibility
(EPR) is an environmental policy in which a producer’s
responsibility for a product is extended to the post-consumer stage, promoted by OECD (Organization for Economic
Co-operation and Development) since 1984. The increased
emphasis on environmental issues has encouraged
companies to develop various decision models that help
complying with regulations while maintaining profitability.
(cited from Pandey et al., 2007) . In Europe, the most
influencing regulation is Waste Electrical and Electronics
Equipment Directive (WEEE) which was adopted in 2003.
This directive has stimulated reverse chain activities within a
supply chain . Take back activities followed by recovery
processes can also result in business profitability. As an
example, remanufacturing return products could reduce the
production cost compared to producing new products (in
terms of less new material and less manufacturing processes
required) while reducing the environment cost at the same
time . Clearly, there is a need to consider the supply chain, not only on the forward channel but also the reverse channel that dealing with returned products, which bring us to the
importance of closed-loop supply chain.
There has been a number of attempt to review literature
on reverse logistics (RL). Fleischmann 
dimensions of the RL, namely motivation for reuse, type of
items recovered, form of reuse, and actors involved. de Brito  described and discussed cases of RL in practice and
Pokharel  showed that researches in RL has been
increasing significantly since 2005 and used content analysis method to show...
References: Design for Environment. Taylor & Francis, 1997.
Logistics: a review of case studies. 2002, pp. 1-32.
519 - 532, 2006.
pp. 471- 472, 2006.
vol. 22, no. 2, pp. 232-246, 2010.
American Perspective. 2009.
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