This study introduces a mathematical model-based approach to designing a sustainable supply chains (SC), intricately combining lean management tools with circular economy principles to address the triple bottom line: environmental, economic, and social sustainability. The model actively enhances supply chain circularity by focusing on procuring components from trusted suppliers for new product manufacturing (forward loop) and managing product returns efficiently for remanufacturing (reverse loop). A vital feature of this model is its facilitation of recovery service-providing cooperatives (RSPCs), which are central to managing customer returns through agreements with retailers. These cooperatives serve as hubs for inspecting, repairing, refurbishing, or recycling returned goods and embody a collaborative venture among community members, supported by the supply chain with training, advisory services, and technical assistance. By incentivizing customers to return products at the end of their useful life and establishing transparent, trust-based relationships between retailers and manufacturers, the model advocates for a supply chain ecosystem that is both sustainable and efficient. The strategic involvement of RSPCs underscores a commitment to environmental stewardship through responsible waste management and recycling practices. The study demonstrates the feasibility of the proposed model through a numerical example, showcasing its potential to enhance supply chain operations using circular economy concepts and lean management practices.
Smith et al. (Tue,) studied this question.
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