Supply chain resilience for managing the ripple effect in Industry 4.0 for green product diffusion

Abstract

PurposeThe purpose of this paper is to examine (1) how the recovery speed using promotional investment and (2) distributed production using additive manufacturing (AM) improve the resilience of the supply chain to manage any disruptions in the diffusion of green products.Design/methodology/approachThe environmental performance, service level performance and economic performance are the measures of interest. These measures are studied through the integration of inventory and production planning (I&PP) of the reverse logistics system and consumer behavior using Bass (1969) model of diffusion of innovation under the paradigm of Industry 4.0 architecture. The Taguchi experimental design framework was used for the simulation analysis.FindingsThe adoption patterns based on the Bass model in conjunction with recovery speed and production on AM during the disruption period suggest that there exist tradeoff decisions between various combinations of information-sharing and I&PP policies.Practical implicationsThe extensive sensitivity analyses provide real-time support for managerial decisions. Besides the potentials of Industry 4.0 capabilities, the present research suggests paying close attention to the recovery speed in conjunction with the inventory management system.Social implicationsThe integration of consumers' behavior (Bass model) to digital technologies is an additional contribution of the present research toward sustainability issues from the social perspective.Originality/valuePrevious research studies have discussed resilience to manage the ripple effect. However, none of them have addressed the changing scope of resilience to manage the ripple effect caused by the disruption in the diffusion of green products in a reverse logistics setup.

Deploying Industry 4.0 Enablers to Strengthen Supply Chain Resilience to Mitigate Ripple Effects: An Empirical Study of Top Relay Manufacturer in China

“…Ivanov 2020) investigated the success fac-tors of supply network resilience and developed an NK agent-based supply network mod-el to simulate resilience performance, confirming that trust has a positive effect on supply network resilience [104]. Dev et al (2021) based on the Bass model, examined how the speed of recovery using promotional investments and distributed production using additive manufacturing can improve supply chain resilience to manage any disruption in the spread of green products [105]. Shi et al (2021) proposed a ripple effect of a synergy model to consider the phenomenon of supply chain partners assisting each other and proposed three new supply chain network resilience indicators to evaluate supply chain network resilience [106].…”

Improving Circular Supply Chain Performance through Green Innovations: The Moderating Role of Economic Policy Uncertainty

“…The implementation of green innovation by firms can help firms improve product quality and firm popularity, expand market share, and increase the sales volume of their products. It also helps firms reduce the pressure on inventory and manage their supply chain [10,29]. With consumers' increasing awareness and demand for environmental protection, firms providing more environmentally friendly products than their competitors will help them develop new markets and gain competitive advantages [30].…”

Building Resilience Attributes of Supply Chains from the Perspective of their Types

“…For example, by optimizing routes, sensitive products are protected and CO2 emissions are reduced [61]. The positive effects of eliminating distortions in the reverse logistics system, through the use of additive manufacturing (AM) technology, are indicated [62]. It is also proposed to create a hybrid of a resistant and green chain by using the SCOR model, because it effectively measures the efficiency of processes and defines the supply chain in all its aspects, which allows for comprehensive measurement and evaluation [63].…”