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Optimal Operation for Green Supply Chain in Consideration of Collection Incentive and Quality for Recycling of Used Products

Watanabe, Takeshi;Kusuawa, Etsuko;Arizono, Ikuo

  • Received : 2013.01.28
  • Accepted : 2013.11.04
  • Published : 2013.12.31

Abstract

In recent years, for the purpose of solving the problem regarding environment protection and resource saving, certain measures and policies have been promoted to establish a green supply chains (GSC) with material flows from collection of used products to reuse of recycled parts in production of products. In this study, we propose an optimal operation of the GSC while considering the collection incentive of the used products and quality for recycling of used products. Two types of decision-making approaches are used for product quantity, collection incentive of used products and lower limit of quality level of reusable parts in the used products for recycling in the GSC. One is the decision-making under an independent policy in decentralized supply chains where a retailer and a manufacturer make decisions so as to maximize profits individually. The other is the decision-making under a cooperative policy in centralized supply chains where a retailer and a manufacturer make decisions cooperatively so as to maximize the whole system's profit. Additionally, we also discuss supply chain coordination as a manufacturer-retailer partnership based on profit sharing. Furthermore, we show the effect of the quality of the reusable parts on the optimal decisions. The collection incentive of the used products was found to bring more profitability to the GSC activity.

Keywords

Green Supply Chain;Quality;Collection Incentive;Independent Policy;Cooperative Policy

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Cited by

  1. Optimal Operation for Green Supply Chain Considering Demand Information, Collection Incentive and Quality of Recycling Parts vol.13, pp.2, 2014, https://doi.org/10.7232/iems.2014.13.2.129
  2. Analyzing the Evolutionary Stability for Behavior Strategies in Reverse Supply Chain vol.14, pp.1, 2015, https://doi.org/10.7232/iems.2015.14.1.044
  3. Optimal Operation for Green Supply Chain with Quality of Recyclable Parts and Contract for Recycling Activity vol.14, pp.3, 2015, https://doi.org/10.7232/iems.2015.14.3.248

Acknowledgement

Supported by : Japan Society for the Promotion of Science