DfRem-Driven Closed-Loop Supply Chain Decision-Making: A Systematic Framework for Modeling Research

Abstract

With the prevalence of a circular economy, extended producer responsibility, and the maturity of intelligent manufacturing technology, Design for Remanufacture (DfRem) has become a new driving force for the profitability of the modern supply chain. DfRem activities occur at the stage of new product design but have a significant impact on subsequent remanufacturing operations. Based on the closed-loop supply chain operation systems with DfRem, we systematically explored the impact of DfRem on supply chain operation decisions through a case study and modeling analysis and built up a modeling research framework of DfRem-driven closed-loop supply chain (CLSC) operation decision-making. Our research identified DfRem-driven model design elements and discussed the modeling of DfRem-driven investment decision problems, involving different approaches to obtain DfRem investment (i.e., DfRem-driven horizontal or vertical supply chain cooperation) and the ownership of DfRem-level decision-making rights. Moreover, the DfRem-driven two-stage and multi-period modeling processes are elaborated in detail. The aim of this paper is to provide other scholars with a more comprehensive understanding of DfRem research issues, and to establish an integrated DfRem-driven research framework for subsequent scholars to better conduct modeling research on DfRem.

Main Dimensions in the Building of the Circular Supply Chain: A Literature Review

“…Government intervention with respect to the application of dynamic intervention mechanisms or subsidies should be conditioned by the preferences of clients or consumers [91]. "Many governments around the world have also introduced a series of remanufacturing policies and regulations to encourage and guide enterprises to focus on the source of sustainable development" [92] (p. 16).…”

“…We can consider different typologies according to the objective sought in the supply chain. Firstly, those technologies related used in product design, manufacturing, and remanufacturing processes to a reduction of production costs and to achieve more sustainable operations-such as augmented reality technology, intelligent robots, or 3D printing for CSCM [92]. For example, those related to extending the life cycle of products, eliminating programmed obsolescence.…”

The Impact of Big Data Analytics on Company Performance in Supply Chain Management

“…Thus, a first attempt to define BDA is based on the 3V framework: (1) weekly generated data volume greater than 300 TB classifies companies in the BDA category; (2) the velocity of data creation and transmission plays a key role in transferring data from batch processing to real-time operation; and (3) the variety of data provided to users can include, in addition to classical SQL or XML formats, digital information such as video, text, or images [7]. Starting from this attempt to define BDA within the supply chain, some specialists have presented other approaches: (1) the process of extracting and presenting supply-chain information to ensure measurement, monitoring, forecasting, and supply-chain management [31]; (2) a broad and unique view of the entire supply chain to disclose component or full production, including analyses and key performance indicators (KPIs) [32]; (3) using quantitative methods to obtain prospective information from data in order to understand in depth what is going upstream and downstream, in order to assess the operational decision-making impact of the supply chain [33]; (4) the operational leap from data response management models that can help specialists analyze larger datasets using proven analytical and mathematical techniques [34]; and (5) the combination resulting from the application of quantitative and qualitative methods to SCM theory to solve SCM problems and predict results, taking into account the quality and availability of data [35].…”

Improving Design for Remanufacturing Though Feedback from Remanufacturing to Design

“…In fact, Hilton and Thurston (2019) suggest that DfRem is critical for remanufacturing. According to Niu et al (2019), DfRem is generally regarded not only to relate to remanufacturing cost but also manufacturing cost, recovery rate, and competitiveness on the market. Further, DfRem can save costs by reducing the remanufacturing operation time (Prendeville and Bocken, 2017).…”

“…There are, however, design features that most products benefit from, such as the use of standardised parts and modularisation (Niu et al, 2019). Since remanufacturing will be carried out months or years after the product is produced, the inflow of used products will be mixed not only in terms of wear and tear but also as far as age and product edition.…”