Profit Analysis and Supply Chain Planning Model for Closed-Loop Supply Chain in Fashion Industry

Abstract

Abstract:In recent decades, due to market growth and use of synthetic fiber, the fashion industry faces a rapid increase of CO2 emission throughout the production cycle and raises environmental issues in recovery processing. This study proposes a closed-loop supply chain (CLSC) structure in fashion industry and develops its planning model as multi-objective mixed integer linear programming to find an optimal trade-off between CLSC profit and CO2 emission. The planning model is associated with the profit analysis of each member in CLSC to find the optimal price of products on CLSC network. The model determines optimal production, transportation, and inventory quantities on CLSC network. The proposed models are validated using numerical experiments and sensitivity analyses, and from the results some managerial insights are addressed.

From a Systematic Literature Review to a Classification Framework: Sustainability Integration in Fashion Operations

“…Packaging reduction [18,25,43] Product recycling [18,19] Green process design [50] Eco-labelling [1,25,50,51] Biological textile production [51] Replacement of solvent-based polyurethane with water-based alternatives [19] Compliance Verification of sustainable manufacturing processes [51] Process certification [1,25,50,51] Transport Decrease in the volumes shipped by ocean and air [9] Reverse logistic systems [43] Social Labour Practices & Decent Work…”

“…A major progress was observed in closed-loop SCs (CLSC). It was revealed that an efficient design of CLSC could not only mitigate environmental pollutions generated throughout the SC, but also increase economic benefits [50].…”

“…Use of organic cotton [7,18,19,25,[43][44][45]50,51] Use of eco-friendly materials [7,18,25,43,45,50] Use of recycled materials (e.g., use of recycled polyester, amongst others) [1,18,19,25,44,45,51,63] Use of the "Considered Index" to compare materials [64] Use of cotton/polyester blends [18] Textile reuse [63] Use of certified raw materials [18,44,51] Reduction of chemical components [25,43] Reduction of colours and colorants used in products [18,45] Water Water stewardship [19,51] Biodiversity Elimination of fur components [45] Effluents & Waste Sustainable packaging [25,43] Products & Services…”

“…Cradle-to-cradle product design [25] Eco-friendly product development [25,43,45,50] Life cycle assessment [18,25,43] Sustainability education to designers [18] Manufacturing through fair trade principles [7] Providing sustainable working conditions to artisans [7] Providing better farming techniques to cotton farmers [51] Society Empowering women through training and new jobs [7] Product Responsibility…”

Multi-criteria decision making approaches for green supply chains: a review

“…These findings show that gaps in literature exists concerning the use of MCDM approaches to support inventory management decisions with respect to economic and environmental criteria. Reverse logistics is considered in 27 publications, while only 11 papers combined forward and reverse logistics to support decision making in a closed-loop supply chain (Govindan et al 2016a;Garg et al 2015;Ghayebloo et al 2015;Mota et al 2015;Devika et al 2014;Kannegiesser and Gunther 2014;Oh and Jeong 2014;Pishvaee et al 2014;Ozkir and Basligil 2013;Paksoy et al 2012;Quariguasi Frota Neto et al 2010). Only few of the papers dealing with modelling material flows in a closed-loop supply chain presents a case study with realistic data.…”