Closed-Loop Supply Chains with Remanufacturing

Abstract

In this tutorial I present an overview of closed-loop supply chains, which are supply chains where there are flows of products (postpurchase) back to manufacturers. Examples include supply chains with consumer returns and leasing options. I start by defining basic terms: differences with respect to forward chains, sources of product returns, disposition options for product returns (scrap, recycling, reuse, cannibalization for spare parts, and remanufacturing), strategic, tactical, and operational issues, along with regulatory and legislative issues. I then provide a brief overview of current practices, particularly regarding the state of remanufacturing in select industries: personal computers and peripherals, B2B information technology equipment, tires, and construction equipment (Caterpillar). I review the extant academic literature on closed-loop supply chains, particularly as it regards to business and management aspects, with less of a focus on environmental practices. Finally, I conclude with some directions for future research.