Coordination for a reverse supply chain with consideration of sustainability, CSR investmants and demand disruptions

Abstract

This paper presents a comprehensive analysis of the optimization of reverse supply chain systems considering dual channels and demand disruptions while incorporating sustainability, corporate social responsibility investment, and pricing coordination. The reverse supply chain encompasses the collection, recycling, and refurbishment of products returned by customers. The study addresses the complexities associated with managing a system with two channels: a direct channel where customers return products directly to the manufacturer and an indirect channel involving a retailer as an intermediary. Additionally, it recognizes the impact of demand disruptions, such as market fluctuations or product recalls, on reverse supply chain operations. The research aims to optimize the system by integrating multiple objectives: sustainability, CSR investment, and pricing coordination. To tackle this multi objective optimization problem, a mathematical model is proposed, capturing various factors such as transportation costs, collection rates, recycling rates, CSR investment costs, and pricing decisions. The paper includes numerical experiments that shed light on the performance of the reverse supply chain system under different scenarios and emphasize the significance of considering sustainability and CSR investment alongside pricing coordination. Overall, this research contributes valuable insights to practitioners and decision-makers involved in managing reverse supply chains, offering strategies to enhance system efficiency while addressing sustainability and CSR objectives.