Closed-Loop Supply Chains

Course content

The major difference between closed-loop supply chains and traditional (forward) supply chains is for a forward supply chain, the customer is at the end of the processes, and for a closed-loop supply chain there is a value to be recovered from the end-user. There are many different types of closed-loop supply chains in practice: production, distribution, commercial returns, repair/replacement, end-of-use/life closed-loop supply chains. The basic drivers for companies to consider closing their supply chains are legislation, environmental consciousness, profit, and customer expectations. Many closed-loop supply chains have a number of characteristics making their design, planning and control requirements different from those of traditional supply chains. Network design and operation, inventory and production planning and disassembly scheduling and sequencing are the fundamental issues for closed-loop supply chain design and operation.