Article

Third-party Demanufacturing as a Solution for Extended Producer Responsibility

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Abstract

In this paper, three approaches to the implementation of Extended Producer Responsibility (EPR) are discussed and compared. They are OEM Takeback in which producers take direct responsibility, Pooled Takeback in which responsibility is shared through a consortium of producers, and Third-Party Takeback in which ‘Product Responsibility Providers’ are contracted to assume responsibility for end-of-life on behalf of producers. For many product categories, this latter approach may be the most effective way to meet the goals of EPR programs.This paper discusses the benefits and challenges of third-party demanufacturing in detail, and also introduces a particular example of the approach. The Renewit system aspires to create a structure for an industry of third-party recyclers, by providing a unified information system to enable efficient product recycling, and an OEM-driven financial mechanism to fund the recycling.

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... EOL processing in EPR systems can be organised in various ways. Spicer and Johnson (2004) outline three approaches to implementation: (1) 'Original Equipment Manufacturer' takeback, where the original producer takes direct responsibility for collecting and processing; (2) 'Pooled Takeback', where responsibly is shared between a consortium of producers, known as the producer responsibly organisation (PRO), usually organised by a product category code, e.g. tyres; and (3) 'Product Responsibility Providers' (PRP), where a private third-party is contracted by the PRO and assumes EOL responsibly for the product on their behalf. ...
... future scenarios, whilst encouraging frontrunners and compelling laggards (Vermeulen and Weterings, 1997). Public benefits include distributed local demanufacturing facilities and immediate economic feedback to product design, driving improvements (Spicer and Johnson, 2004). Challenges for local demanufacturers include knowledge of the original product blueprints, which producers can be unwilling to transfer, and finding suitable markets for recyclable materials. ...
Article
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The circular economy (CE) emphasises closing material loops to retain material value. The current practice of tyre recycling in the Netherlands, through a system of extended producer responsibility (EPR), appears an overwhelming success, with claims of 100% recovery. Yet, there is limited critical understanding regarding the system's circularity, considering alternative value retention options and resource recovery outcomes. This study analyses this Dutch tyre EPR system and reflects on how it can be improved from a systemic CE perspective. It uses a qualitative case study approach, using interviews and a review of policy, legal and EPR reporting documents. This paper assesses the governance of this sector and reflects on the existing system, including its circularity and value retention outcomes. Our analysis reveals seven central issues concerning how the EPR system currently functions, resulting in limited circularity and sustainability outcomes, despite high material recovery levels. To address these issues we recommend the continuous improvement of recovery and sustainability targets beyond a single product life cycle, a more transparent and inclusive governance system, as well as a greater focus on sufficiency strategies, e.g. design for durability and a broader transformation of transport models. This paper adds a practical understanding of the capacity of EPR to contribute to CE. Full text available (open access): https://www.sciencedirect.com/science/article/pii/S0959652620320898
... Environmental design is the creation of products that are environmentally friendly by incorporating environmental considerations into the lifecycle of the product, from the purchasing of raw materials to the product's final form (Leal, Casadesús & Pasola, 2003). If customers participate in a design review, this is beneficial because the products will be recognized by even more customers (Zhu et al., 2008a(Zhu et al., , 2008bSpicer & Johnson, 2004;Toffel, 2004;Petersen & Kumar 2009). ...
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Purpose: This study was conducted to investigate the influence of isomorphism institutional theory on green supply chain management (GSCM) and firm performance by using the structural equation model (SEM) to explain the driving factors of reducing the impact of environmental processes on the firm.Design/methodology/approach: Structural equation model (SEM) to explain the driving factors of reducing the impact of environmental processes on the firm.Findings: Isomorphism institutional factors showed a statistically significant positive effect on GSCM practices. Moreover, GSCM practices showed a statistically significant positive effect on firm performance. Under the literature review, customer pressure and top management support are primary factors to achieve GSCM practices and potential to establish firm performance.Research limitations/implications: First, the common hypothesizes do not provide insight into all the relationships that warrant additional inspection. Second, Thailand manufacturers have experiences pressures from foreign customers and competitors but they have opportunities to learn from them to better improvement GSCM practices.Practical implications: Results may highlight pressure for greening and which more efforts are needed for GSCM practices. GSCM practices generally require more effort due to need for collaborating with customer and competitor. Thailand manufacturers are increasingly confronted with isomorphism institutional pressure to implement GSCM practices.Social implications: It is useful the Thailand government promotes GSCM by creating an awareness of the benefits. GSCM can help to alleviate the question of the followers about implementing GSCM and decrease their risk association with the environmental adoption.Originality/value: Research creates clarity of the relationship between isomorphism institutional pressures, top management support, and performance in Thailand, which is a developing country with environmental investment concerns that affect profits from the operations of the firm.
... Some however, contract third-parties referred to as producer responsibility organisations (PROs) to manage their assigned industrial wastes (Massarutto, 2014;€ Ozdemir-Akyıldırım, 2015). The PROs are tasked with ensuring the disposal of the manufacturers' products are disposed of in a manner that is environmentally responsible and compliant with existing legislations (Spicer and Johnson, 2004). However, there is no universal or standard agreement on the manufacturers' responsibility for endof-life waste. ...
Article
Landfill restrictions on certain materials and products have provided the impetus to seek for a more sustainable utilisation of waste in a circular economy. These restrictions compounded with legislation and value factors necessitate an urgent solution to address the issue of carbon or glass fibre reinforced composite waste disposal. There is currently no mutual agreement on waste ownership among stakeholders. This study examined composite manufacturers in the United Kingdom and determined the waste volumes available within these companies. A new approach that combined mathematical modelling of supply chain complexity, centre-of-gravity method and K-Means algorithm was developed to determine the optimum location of third parties that could process waste for a number of supply chain providers. The paper is a presentation of new knowledge and proposes a scientific approach for identifying possible optimum locations for recycling centres. More significantly, this process could be used for clustering and reducing supply chains complexity to enable the setting up of multiple and optimally located recycling centres. The results have indicated that the approach could minimise carbon footprint and greenhouse gas emission associated with transporting cores or waste to processing centres. This work is of generic importance that could be implemented across other waste and aspects of a circular economy such as remanufacturing.
... Minimisation of the environmental impact of the end-of-life of products has to be implemented on a systems level. Therefore, the products and production systems of firms need to be designed with circular design principles (Spicer and Johnson, 2004). Bocken et al. (2014) have classified sustainable business models into eight different archetypes that provide different models facilitating the transition to a circular economy. ...
Article
Plastic products are easy and convenient for our everyday use, but their negative impacts on human health and the environment cannot be overlooked. The negative impacts and effects of plastic waste are now widely known and have been subject of much recent media coverage, both in Europe and on a global level. Faced with increasing amounts of plastic waste, the European Union as a whole and many European governments in particular, are currently revising the policy options available to cope with the problem. One of the tools which may be deployed with a view to reducing the pressures posed by plastic waste, is the Extended Producer Responsibility principle. It is considered to be one of the major waste management policy instruments that support the implementation of the European waste hierarchy. Its application may assist in fostering the collection and recycling of waste streams that contain plastic. This paper presents an overview of the problems posed by plastic waste, and outlines their environmental dimensions. It discusses the role of the Extended Producer Responsibility principle and provides some recommendations that may be useful in enhancing extended producer responsibility.
... • First, government should consider developing policies similar to the extended producer responsibility (EPR) to incentivize express delivery service providers to recycle post-consumer packaging waste. EPR extends the producer's responsibility for its products beyond the use phase to the EoL (Spicer and Johnson, 2004;Subramanian et al., 2009). Under EPR, producers are responsible for recycling and properly treating and disposing post-consumer waste generated from their products. ...
Article
Express delivery plays a vital role in modern economy, but also brings great concern on post-consumer packaging waste. This study is therefore designed to characterize the material flows and environmental implications of post-consumer packaging waste from express delivery in China. While express delivery packaging uses mainly recycled materials, post-consumer packaging wastes are only partially recycled in China. In addition, plastic packaging materials are mainly produced from recycled agricultural films and contain chemical residues from pesticide applications which may have significant health impacts on employees and consumers in the express delivery industry. Policy suggestions are provided for government, express delivery service providers, and consumers to mitigate environmental impacts of post-consumer packaging waste from China’s booming express delivery industry.
... Strict governance of the Contribution is paramount to avoid issues such as corruption and gaming of the system and to ensure that intra-and international value transfer is equitable and efficient, as the revenues from FFP production and the costs from its polluting effects often accrue in different regions (Abbott and Sumaila, 2019). Extended Producer Responsibility (EPR) policies (Hanisch, 2000;Spicer and Johnson, 2004;European Commission, 2019;Hilton et al., 2019) provide a template for a global scheme. EPRs often rely on a Producer Responsibility Organization (PRO) to act on behalf of the stakeholders and operate under clearly defined governance arrangements (Fleckinger and Glachant, 2010;Börner and Hegger, 2018;Park et al., 2018). ...
Article
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Marine plastic pollution is a symptom of an inherently wasteful linear plastic economy, costing us more than US$ 2.2 trillion per year. Of the 6.3 billion tonnes of fossil fuel-derived plastic (FFP) waste produced to date, only 9% has been recycled; the rest being incinerated (12%) or dumped into the environment (79%). FFPs take centuries to degrade, meaning five billion tonnes of increasingly fragmented and dangerous plastics have accumulated in our oceans, soil and air. Rates of FFP production and waste are growing rapidly, driven by increased demand and shifting strategies of oil and gas companies responding to slowing profit growth. Without effective recycling, the harm caused by FFP waste will keep increasing, jeopardizing first marine life and ultimately humankind. In this Perspective article, we review the global costs of plastic pollution and explain why solving this is imperative for humanity's well-being. We show that FFP pollution is far beyond a marine environmental issue: it now invades our bodies, causing disease and dysfunction, while millions of adults and children work in conditions akin to slavery, picking through our waste. We argue that an integrated economic and technical solution, catalyzed through a voluntary industry-led contribution from new FFP production, is central to arrest plastic waste flows by making used plastic a cashable commodity, incentivizing recovery and accelerating industrialization of polymer-to-polymer technologies. Without much-needed systematic transformation, driven by a contribution from FFP production, humanity and the oceans face a troubling future.
... In order to promote EPR in the management of EOL and EOU products, several legislative mechanisms have been implemented. Their practices have been investigated by researchers in many countries and regions all over the world, i.e., European Union (EU) (Mayers et al., 2005, Khetriwal et al., 2009), Canada (McKerlie et al., 2006, China (Xiang andMing, 2011, Kojima et al., 2009), and Brazil (Milanez and Bührs, 2009) The legislative requirements on manufacturers' participation in the value recovery and disposal of EOL and EOU products give the opportunities for some companies to improve their profitability, recourse utilization as well as efficiency, but it is considered a challenge for many other companies (Spicer and Johnson, 2004). The complication and complex nature in managing the material, information and capital flows in EOL and EOU returns reduce the enthusiasm of companies' involvement in this business. ...
Thesis
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With the increased focus on environmental pollution and sustainable development, the value recovery and re-creation from the End-of-Use and End-of-Life products has been given considerable attention by the whole society. Reverse logistics is the process for recovering the value from End-of-Use and End-of-Life products through a series of activities, i.e., reuse, repair, remanufacturing, recycling and energy recovery. Nevertheless, due to the stochastic reverse product flow, unstable quality, the changing costs for facility operation and transportation, as well as the price fluctuation of the recovered products, the design of a reverse logistics network is a complex decision-making problem. In this thesis, advanced optimization models and methods have been developed for providing decision-makers, supply chain managers and practitioners with better support and implications for the planning of a sustainable reverse logistics system under an uncertain environment. Moreover, the development on the modelling and solution techniques has contributed to the knowledge accumulation in operational research and can also be used for modelling and resolving optimization problems in some other fields.
... Inspection covers all types of operations which identify whether the collected products are usable or not, and if so, in what way. Some researchers have looked at third party outsourcing for collection of EOL products to the inspection location [47] in a way that it becomes more the manufacturer's' responsibility than the consumers. This is consequent to governmental legislation on EOL products in many countries. ...
Article
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An efficient recycling process has been identified as the vehicle that drives an effective green supply chain management, resulting in the reduction of waste in the manufacturing supply chain. This study offers an overview of the different stages and structures of recycling with respect to carbon footprint analysis and waste management through an extensive literature review. Various internet-based search engines were used to uncover the literature. The review found that research and practices in recycling have covered almost all aspects of recycling such as the collection of end-of-life products, their processing, recycling and subsequent integration of the recyclables in manufacturing, remanufacturing, and waste disposal. Special focus was given to prospects and opportunities for further research. On that ground, various aspects of the recycling processes were identified and highlighted to further enhance research in the field of recycling.
... Research on PR has not been limited to the social responsibility literature alone. It has also been discussed in other fields of inquiry such as marketing (Selnes, 1993), operations (Spicer and Johnson, 2004), strategic management (Toffel, 2004), and public health (Peloza et al., 2015), among others. A keyword search for PR on the EBSCO database in 2018 revealed that over 72 articles published in reputable marketing journals have exclusively mentioned the term in their articles. ...
Article
Purpose Consumers have increasingly become more concerned about environmental degradation, wastage of critical resources and safety. Therefore, firms are adopting sustainability management practices to attract these conscious consumers. Product responsibility (PR) is an important indicator of corporate social responsibility (CSR) and sustainability management. This study examines the relationship between the board- and firm-level characteristics and the PR ratings of firms. Design/methodology/approach A temporal design with a lag of one year for a sample of 403 firms from the global emerging economies is analyzed for this purpose. Findings Hierarchical regression analysis shows that total revenue, board size, and board diversity have a positive effect on PR ratings. Research limitations/implications These findings have implications for policy-level decisions on the composition of boards for the sustainable future of firms. Originality/value The study is one of the few studies that have looked into the factors affecting the PR ratings, which are an important indicator of the sustainable practices of an organization.
... ci politika araçları kullanılabilir. OECD (2016)'da bu uygulamalar dört başlıkta ele alınmıştır:1. Ürünü geri alma zorunluluğu: Bir ürün ya da Literatürde GÜS'e dair yapılan araştırmalar çok çeşitli disiplinlerden gelmektedir. Ağırlıklı olarak tedarik zinciri ve üretim yönetimi alanında yapılan çalışmalar GÜS sistemlerinin ve ürün tasarımını (örn.,Spicer ve Johnson, 2004; Subramanian ve diğ., ...
Article
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Teknolojinin hızla gelişmesiyle elektronik ürünlerin ömürleri kısalmakta ve elektronik atıkların sayısı buna paralel biçimde artış göstermektedir. Elektronik atıkların kazanılmasında ve/veya uygun bir biçimde bertaraf edilmesinde belediyelerin, üreticilerin ve tüketicilerin sorumlulukları vardır. Bu çalışmanın amacı elektronik atıkların önemli bir bölümünü oluşturan cep telefonlarında üreticilerin sorumluluklarını "genişletilmiş üretici sorumluluğu" kapsamında incelemektir. Genişletilmiş üretici sorumluluğu, cep telefonu üreticilerinin (n=12) kurumsal web siteleri aracılığıyla içerik analizi kullanılarak incelenmiştir. Araştırma sonuçlarına göre cep telefonu üreticilerinden sadece bir tanesi Türkiye’de cep telefonlarını geri alma programı uygulamakta ve konuya dair bilgileri web sitesinde ayrı bir sayfa olarak aktarmaktadır. Diğer üreticiler ise henüz Türkiye’de geri alma programı uygulamamaktadır. Ayrıca diğer üreticilerin konu ile ilgili web sayfalarında yer alan bilgilerin bazıları Türkçe bazıları da İngilizce olarak yer almaktadır.
... However, the research shows that CLSC processes do contain information that can be used to improve products [65]. This information can be sourced from qualitative feedback on product design [63,64] or through systematic quantitative data collected during the return transaction. However, as a recent case study [65] illustrates, sometimes products are returned too late for firms in high speed industries to properly learn lessons from them. ...
Article
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Product returns are a source of valuable information that can be used by firms and supply chains to improve products, services, and decision making. However, firms are struggling to maximize the value of this information, and the extant scholarly literature is scattered among various research streams. Using a systematic literature review, the state-of-the-art of product returns informational value research and limitations in the current body of work were examined and future directions for research suggested. Three types of informational value were identified, namely operational information, product related information, and customer-related information, along with four value-creating factors, namely strategic information system (IS) decisions, organizational learning, information sharing, and technological solutions. Implications for practitioners are discussed. Lastly, the limitations are discussed, along with recommendations and directions for future research work.
... In addition, EPR and waste electrical and electronic equipment (WEEE) can be considered other effective ways to achieve supply chain sustainability. Several studies analyzed the impact of these policy regulations on producers' performance in managing the supply chain [21][22][23][24]. ...
Article
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Rare metals (RMs) are becoming increasingly important in high-tech industries associated with the Fourth Industrial Revolution, such as the electric vehicle (EV) and 3D printer industries. As the growth of these industries accelerates in the near future, manufacturers will also face greater RM supply risks. For this reason, many countries are putting considerable effort into securing the RM supply. For example, countries including Japan, Korea, and the USA have adopted two major policies: the stockpile system and Extended Producer Responsibility (EPR). Therefore, it is necessary for the manufacturers with RMs to establish a suitable supply chain plan that reflects this situation. In this study, the RM classification matrix is created based on the stockpile and recycling level in Korea. Accordingly, three different types of supply chain are designed in order to develop the closed-loop supply chain (CLSC) planning model of RM, and the CLSC planning models of RM are validated through experimental analysis. The results show that the stockpiling and the EPR recycling obligation increase the amount of recycled flow and reduce the total cost of the part manufacturing, which means that these two factors are significant for obtaining sustainability of the RMs’ CLSC. In addition, the government needs to set an appropriate sharing cost for promoting the manufacturer’s recycling. Also, from the manufacturer’s perspective, it is better to increase the return rate by making a contract with the collectors to guarantee the collection of used products.
... Thus, F count > F table ( 365.286> 3.35) and the significance value 0.000 <0.05. This shows that H 3 received and H 0 is rejected, which means that the Third Party Funds and Non Performing Financing simultaneously affect the Financing Murabaha at PT Bank Syariah Mandiri for the period of 2010-2017, This is in accordance with the research conducted by (Boyson, Gantchev, & Shivdasani, 2017;Fallon, 2015;Spicer & Johnson, 2004). ...
Article
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The purpose of this research was to find out of Third Parties Fund, Non-Performing Financing and Murabahah in PT Bank Syariah Mandiri and to analyze and explain for both partially and simultaneously on Murabahah at PT Bank Syariah Mandiri. While the research method is descriptive quantitative with data obtained from the quarterly financial statement of PT Bank Syariah Mandiri. The results show that Third Parties Fund, Non-Performing Financing, and Murabahah continue to fluctuate. To partially test hypothesis shows that variable Third-Parties Fund significant effect on Murabahah, while variable Non-Performing Financing no significant effect on Murabahah.
... Other researchers also observed a positive perception of the use of PROs. Spicer and Johnson discuss the benefits and challenges of the use of third-party de-manufacturing and found some of the same characteristics as those reported by the case company [42]. They pinpoint that this approach to fulfill EPR is "[i]deal for categories with a wide variety of products and manufacturers" and that, related to efficiency, this form or organization makes competition option for EoL treatment. ...
Article
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Waste electrical and electronic equipment (WEEE) as a reverse supply chain (RSC) has a low degree of circularity, mainly focusing on recovering or recycling. Targets to increase the circularity have recently been introduced in the EU WEEE directive. In this case study, we have investigated how WEEE is handled within an electric and electronic (EE) equipment manufacturer. The case study includes findings from two different Nordic countries, Norway and Denmark, with interviews of six stakeholders. The case study shows that there are significant differences in how the case company fulfills its extended producer responsibility (EPR), especially related to reporting. The study also found that there is a mismatch between the ambitions in the WEEE directive and a company’s approach related to circularity in the end-of-life phase of an EE product. Based on the results of this case study and from the literature we propose recommendations on alignment with other directives and on a common information regime within the WEEE RSC.
... At present, the main system for electronic wastes and PV components recycling in the world is the so-called Extended Producer Responsibility (EPR), which requires manufacturers to be responsible for the treatment or disposal of post-consumer products (Tang, Zhang, Yaoming, Wang, & Yan, 2018). For different entities that handle the waste components, EPR contains three modes including Original Equipment Manufacturer Takeback (OEM), Pooled Takeback (PTL), and Third-Party Takeback (TPT) (Spicer & Johnson, 2004). The end-of-life management of PV modules contains three steps: First collecting post-consumer PV modules, then transporting them to a recycling center, and finally making a disposal. ...
Article
China has become the world's largest market for photovoltaic (PV). Effective management of end‐of‐life PV components is critical to the sustainable development of renewable energy. However, the scale of PV recycle industry is still small in China, and there is a lack of supporting policies and public attention. Issues and solutions regarding PV end‐of‐life management have not been well covered by the research community, and this article aimed at filling this gap. This article first examined the growing need for PV modules end‐of‐life management in China as a result of rapid PV installation expansion fueled by governments’ policy promotion and fiscal incentives, especially with special programs such as the Photovoltaic Poverty Alleviation Initiative. Then, factors leading to the PV components recycling issues, policies adopted in other countries and regions to promote PV recycle, and various business modes that can be applied to enable PV recycle were reviewed. Finally, a more effective institutional hierarchy was presented for PV modules end‐of‐life management, with a set of specific recommendations on actions that can help strengthen PV end‐of‐life management. This article is categorized under: • Photovoltaics > Economics and Policy • Photovoltaics > Systems and Infrastructure
... EPR requires producers' responsibility to be extended to the life cycle of a product. Specifically, goods producers should take responsibility for all the environmental impacts and externalities associated with the product's service life, also including end-oflife options (Lindhqvist & Lifset, 2003); the usage of EPR schemes represents a policy which can mitigate the negative environmental and social impacts arising from production activities (Spicer & Johnson, 2004). Based on the above-mentioned principles, it is reasonable for producers to take responsibility for logistical activities related to the distribution of their products; logistical processes, indeed, represent a key segment in the life cycle of the products. ...
Article
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Recently, many European local authorities have set up Urban Consolidation Centres (UCC) for dealing with challenges arising from the environmental and social impacts of logistical activities in urban contexts through shipment synchronisation and carrier coordination policies. However, the number of successful UCC projects led by local authorities in Europe is low, with most of the UCCs failing to achieve financial sustainability after the initial experimental phase, which is often heavily supported by public funds. In order to propose mechanisms that could favour the economic and financial sustainability of UCC systems, this research develops an adaptation of game-theoretic approaches to the problems of responsibility and cost allocation among stakeholders participating in a UCC delivery network. A solution based on the Shapley Value concept is employed to derive cost allocations; applications of the model to a real-world scenario are evaluated. An extensive sensitivity analysis shows that the proposed cost allocation rules can provide alternative arrangements, based on extended responsibility concepts, which can alleviate the burden on local authorities for the set up of UCCs. As such, results provide useful policy and practice implications on how to safeguard UCCs’ viability under different scenarios, including the outsourcing of the last-mile deliveries.
... Manufacturers should reasonably coordinate the recycling efforts of retailers and recyclers. Reference [32] proposed that manufacturers provided a third party with a contract fee for cooperative recycling. It was proven that this recycling form is a win-win for manufacturers and the public. ...
Article
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This article studies pricing strategies of the dual-channel recycling supply chain where the manufacturer and the recycler compete on price in recycling waste electrical and electronic equipment (WEEE) and cooperate in disposing of them. This article is based on whether the recycler can refurbish and distinguish two different treatment methods of WEEE: refurbishment by the recycler and remanufacturing by the manufacturer. Two dual-channel recycling structures are proposed: (1) the recycler cannot refurbish when the manufacturer remanufactures; (2) the recycler can refurbish when the manufacturer remanufactures. By solving two Stackelberg game models, we derive pricing strategies. The impacts of recycled products’ quality and base profit for remanufacturing and refurbishing on pricing strategies are discussed. We find that the recycler prefers refurbishing when its base profit for refurbishment is greater than the manufacturer’s base profit for remanufacturing, rather than the transfer price. Interestingly, the recycler’s refurbishment does not reduce the manufacturer’s profits but creates a win-win situation through their cooperation. Furthermore, the better quality of recycled products and the higher base profit for refurbishing and remanufacturing can bring more profit to the recycler and the manufacturer, increase the recycling prices, improve the efficiency of resource utilization, and reduce environmental pollution.
... USA and some European nations were the pioneers of product and material recovery, being attracted to the field mainly owing to the profit that it brings about. Americans paid a lot of attention to product and material recovery as long as it saved them money [99], particularly in fields such as automobile recycling and engine remanufacturing. In order to manage the end-of-life product's recovery and disposal, the European Union has also set forth product-specific ordinances on waste packages, batteries, endof-life vehicles, and waste of electrical and electronic gadgets. ...
Article
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Third-party logistic provider (3PLP) companies play a major role in supply chain management (SCM) by carrying out specialized functions—namely, integrated operation, warehousing, and transportation services. Taking sustainability issues into consideration makes reverse logistics even more significant. In this paper, a combination of sustainability and risk factors was considered for third-party reverse logistic provider (3PRLP) evaluation. Initially, fuzzy step-wise weight assessment ratio analysis (Fuzzy SWARA) was applied for weighing the evaluation criteria; then, Fuzzy multi-objective optimization on the basis of ratio analysis (Fuzzy MOORA) was utilized for ranking the sustainable third-party reverse logistic providers in the plastic industry in the second step. Findings highlight that quality, recycling, health, and safety were the most important criteria in economic, environmental, and social dimensions of sustainability, respectively. Also, operational risk was found to have the highest weight among risk factors.
... Ownership models for driving a circular economy are summarized inTable 1.[9]Can be a specialist recycler and or remanufacturer My not have the vital product, design manufacture information Government by Scheijgron, 2011[10]Able to execute related legislation, regulate markets and impose levy to finance reprocessing. May not have the vital product information or technology While the extended producer responsibility is the most common and advocated for model for driving a circular economy for end of life products and waste there are other contrasting views proposing that the end user, third party or government are better actors and business owners for a circular economy. ...
Article
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In a circular economy, resources are kept in use for as long as possible, extracting the maximum value from them whilst in use, then recovering and regenerating products and materials at the end of each service life. To enable a transition to a circular economy it is important to establish the factors that would trigger and sustain such an economy and the extent to which aspects of the circular economy are already embedded in countries. This research focused on a comparative analysis of the United Kingdom and South Africa composite manufacturers in relation to circular economy for composites materials. Key considerations such as the drivers, sustainers, barriers, ownership models, volume of composite waste from production operations, and current recycling or disposal practices were studied. For both countries, the opportunities to reduce cost were found to be a very strong and a common driver and sustainer for re-use and recycling of composite waste from manufacturing operations. The range of findings helps in understanding the national context and international synergies in transition to circular economy for composite materials.
... Currently, the Chinese battery industry is trying to construct an ''extended producer responsibility (EPR)" system which has also been proposed by the Chinese association of battery industry (Zhao and Cao, 2015-11-24). As is claimed in (Lifset et al., 2013;Spicer and Johnson, 2004;Yu et al., 2008), EPR for end-of-life products management can be implemented through producer-byproducer rather than to groups of producers in order to intrigue the possibility of sustainable product design. There are around 59 certified secondary lead processing companies until 2015 distributed mainly in the middle, east and south of China (Fig. 8) while the lead-acid battery companies with a number of around 450 is however distributing wider and also mainly in the east and south region. ...
Article
Lead is classified to be one of the top heavy metal pollutants in China. The corresponding environmental issues especially during the management of spent lead-acid battery have already caused significant public awareness and concern. This research gives a brief overview on the recycling situation based on an investigation of the lead industry in China and also the development of technologies for spent lead-acid batteries. The main principles and research focuses of different technologies including pyrometallurgy, hydrometallurgy and greener technologies are summarized and compared. Subsequently, the circulability of lead based on the entire life cycle analyses of lead-acid battery is calculated. By considering different recycling schemes, the recycling situation of spent lead-acid battery in China can be understood semi-quantitatively. According to this research, 30% of the primary lead production can be shut down that the lead production can still ensure consecutive life cycle operation of lead-acid battery, if proper management of the spent lead-acid battery is implemented according to current lead industry situation in China. This research provides a methodology on the view of lead circulability in the whole life cycle of a specific product and is aiming to contribute more quantitative guidelines for efficient organization of lead industry in China.
... The EoL options are an integral part of the manufacturing and product life cycle phases; hence, it is necessary to integrate the EoL models into the entire manufacturing processes, so that the issues of sustainability can be addressed from the design phase. (Spicer and Johnson 2004) proposed the integration of dismantling operations into a value recovery plan to promote the concept of a circular economy. The proposal is aimed at minimizing the number of dismantling operations and waste generations during the demanufacturing process of a product. ...
Article
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The concept of sustainability and circular economy is crucial in the recovery of products that have reached the end-of-life (EoL). However, lack of a suitable framework for the recovery products at their EoL in the rail industry is a constraint in achieving a sustainable circular economy. There has been a growing concern about the environmental impact caused by railcar components that have reached their end-of-life. Hence, this study provides a sustainable decision framework for the selection and implementation of the EoL options for railcar components. Using the railcar bogie as a case study, the EoL recovery processes identified, namely refurbishment, reuse, recycling, and remanufacturing were incorporated into the decision model. The recovery rate of the steel material employed for the development of the bogie transom, bogie gear box and bogie motor were obtained as 95%, 96% and 98%, respectively, while aluminum material for the development of the brake cylinder also boast of high rate recovery (90%) at the end of its life cycle. Furthermore, the mathematical models for the estimation of the cost relating to the identified EoL options were developed in order to project the cost-effectiveness and the profitability of the EoL identified options. The cost implications of the EoL options as well as the projected profit from the cost models were estimated. Recommendations were also made to increase the level of awareness of the circular economy in order to promote economic, environmental sustainability and safe guide public health. It is envisaged that the findings of this work will assist railcar manufacturers, and operators to achieve sustainability in terms of material, energy, economic, social, and environment during the life cycle of a railcar.
... The concerns on the allocation of environmental responsibility in offshore prefabrication fall 60 into the domain of extended producer responsibility (EPR), which is first defined by Lindhqvist 61 (2000) as an environmental protection strategy aimed at ensuring the manufacturer of a product 62 is responsible for its entire life cycle, including takeback, recycling, and final disposal. EPR is 63 contamination, hazardous waste production, and abandonment of products in the environment 143 (Spicer and Johnson, 2004), an EPR programme should be designed by considering industries 144 and products covered by the policy context, the forms of organization, and the economic, social 145 and cultural context in which the programme operates (OECD, 2005). Generally, there are two 146 ways to achieve EPR programmes by a legal means, economic regulations and administrative 147 controls. ...
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Prefabrication has been widely advocated as a green production strategy to minimize the adverse environmental impacts of construction. Amid economic globalization, prefabricated construction materials are commonly sourced offsite and even offshore. As an issue emerging alongside offshore pre-fabrication, extended producer responsibility (EPR) is yet to be clearly identified, allocated, and implemented. This research develops a conceptual framework using a design thinking process, through which EPR associated with offshore prefabrication can be analyzed, agreed upon, and allocated. By considering the scope and scale of the responsibility and the procurement methods, the framework comprises four quadrants representing four typical scenarios for implementation of the EPR principle. It is applicable for both short-term and lifelong EPR analysis, in both traditional and integrated project delivery contexts. The framework will be particularly useful for devising public policies to achieve an onshore and offshore stakeholder win-win situation.
... My not have the vital product, design and manufacture information Third-Party ( Spicer and Johnson, 2004 ) Can be a specialist recycler and or remanufacturer ...
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Rail industry across the globe is growing exponentially since the days of rail inception into African transportation systems. Freight and passenger trains contribute a greater proportion to rail industry commercial structures. The passenger trains are a mode of transport for both poor and rich people in Africa. Due to the lack of appropriate end-of-life (Eol) recovering strategies of the train's components, most components are relegated to landfills. Most African countries including South Africa have been importing trains for many years, primarily from Europe and Asia. Some of these trains have reached or are reaching Eol soon, which makes it difficult for countries to develop or have appropriate mechanisms or technologies of recovering Eol components. Moreover, lack of train manufacturing plants in some of African countries create a vacuum in recovering Eol components of the trains. This study will review various literature on train life cycle management system and end-of-life recovery strategies applied across the globe. The study further looks at different circular economy modalities, which can be best suited for the African environment. The novelty of this study is in a demanufacturing operation framework that is flexible on recovering complex Eol railcar components in the African region. The study will use a case study of Africa against the globe to assess the readiness of countries to gain benefits of circular economy. The study intends to develop a sustainable demanufacturing based conceptual model to promote circular economy.
... OECD defines EPR as "an environmental policy approach in which a producer's responsibility for a product is extended to the post-consumer stage of a product's life cycle" (OECD, 2001, p. 9). EPR was first introduced in the early 1990s in Europe (Lifset et al., 2013;Lindhqvist, 2000) and, in subsequent years, the concept was further developed and implemented through the work of researchers and policymakers (for an overview: European Commission, 2014;Forslind, 2005Forslind, , 2009Kaffine & O'Reilly, 2013;Lifset, 1993;Lifset & Lindhqvist, 2002Lifset et al., 2013;Lindhqvist & Lifset, 1997;OECD, 2001OECD, , 2016Spicer & Johnson, 2004). In the last two decades EPR has been increasingly applied worldwide to numerous products such as packaging waste, pesticides and lubricants, used electronic and electrical equipment, batteries, end-oflife vehicles and tires. ...
Article
Over the last decades, a number of new environmental policies have been designed to improve waste management. Among them, extended producer responsibility (EPR) has introduced a mechanism to shift the environmental and financial burden of end‐of‐life products from public management to producers. Recently, EPR has been adopted by a growing number of developing countries, but this policy often struggles in being effectively implemented in such contexts, missing the opportunity of using waste management as a sustainability driver. By discussing the EPR for end‐of‐life tires (ELTs) in Ecuador, this paper proposes a different approach in designing and implementing EPR schemes in developing countries: it recommends consideration of social sustainability, rather than merely copying foreign management frameworks. To address this point, two case studies on socially directed ELT applications were designed and carried out. The case studies aimed at improving resilience of vulnerable populations to natural disasters by increasing the resistance of housing and settlements against catastrophic events using civil engineering applications. The analysis of the case studies’ outcomes brings to light possible policy adjustments, in which social sustainability goals are taken into account within the national EPR scheme. The Ecuadorian case also highlights the benefit of employing an adaptive governance approach when dealing with challenging urban management topics, such as informality (a widespread phenomenon in developing countries) and resilience.
Chapter
In this chapter, we investigate smart maintenance for hardware capacity management from the end of life (EoL) viewpoint. We describe the general knowledge of product recovery and disassembly in Sect. 6.1. Then, in order to demonstrate how smart maintenance strategy can be better implemented in such tangible asset management, in particular, EoL aspect, one representative research avenue is introduced in Sect. 6.2. Section 6.3 summarises this chapter.
Article
Sustainable production and consumption is a hot topic in innovation policies. Most European producers of electrical and electronic equipment have joined collective compliance schemes - generally called Producer Responsibility Organizations (PROs) - to guarantee compliance with the mandatory requirements that enforce the Extended Producer Responsibility principle. The role of PROs is to: (1) reduce the environmental impact of the end-of-life of products, and (2) stimulate innovation pathways in the activities conducted in the supply chain (collecting, sorting, dismantling and recycling). The paper makes use of data collected with a questionnaire investigated with a Latent Cluster Analysis (LCA) and the data emerging from the grey literature to present an analysis of European PROs operating in the e-waste sector. Results highlight that regulation introducing policy targets in terms of supply chain performance without organizational prescriptions lead to three different strategic postures. Relational rents and institutional rents emerge as the main determinants of those forms. The lack of correlation between the level of strategy proactivity and environmental performances underlines the immaturity of the implementation of the EPR principle that failed to stimulate innovation in the supply chain.
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A product’s sustainability affects its consumer evaluation. Sustainable supply chain management (SSCM) research emphasizes the customer role, but typically adopts the company view. On the other hand, when consumer choice is studied, sustainability is mostly evaluated in terms of one feature only, instead of the many facets of sustainability. This research gap has been filled in this study by broadening the view of SSCM to encompass how the consumer relates to different features of sustainability. SSCM literature is first used to construct a conceptual framework for consumer product evaluations and to provide a basis for focus group discussions aimed at identifying the different sustainability features. The case product (mobile phones) has high volumes and short lifecycles that affect environmental sustainability. In our focus group results, all framework themes were present with varying importance. The groups unanimously wished to extend the lifecycle of the phones, an observation affecting product design. A strong demand for information sharing related to supplier management and recycling was also discovered.
Conference Paper
With the apposed system of Extended Producer Responsibility (EPR), manufacturers can adopt the third-party recycling mode instead of its extended responsibility. Based on the recycling cooperation structure model of M nodes with multi-client to multi-agent, using game theory analyze the partnership among the different benefit bodies of the recycling structure deeply. And then have a conclusion that the number of the participating company of any node has dual effects. One effect is with the increasing the number of the participating company of any node, the recycling quantity and the entrusted price will increasing, this will be conducive to environmental protection. And the other is with the increasing the number of the participating company of any node, it will lead to decrease the recycling benefit not only to the whole structure, but also to every node, even to every company participating in any node.
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Improvement of transport efficiency in reverse logistics contributes not only to direct efficiency gains but also to promotion of waste recycling. This paper first examines the existing situation of waste management and related reverse logistics systems in Japan. Some examples of efficient reverse logistics systems in the United States are also discussed. In considering the case of the Tokyo Prefecture area, alternative transport systems for waste management reverse logistics are evaluated using a vehicle routing model based upon a genetic algorithm. The modeling results show that the milk-run type cooperative truck transport in combination with bulk-hauling railway transport is the most cost-effective option with significant benefits in terms of lower CO2 emissions.
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Due to the popularization and development of electric vehicles (EVs) worldwide, batteries that have been used are being retired and replaced. In battery recycling, consumers often face problems, such as high replacement prices for batteries and the lack of subsidies and support. A total of 567 valid questionnaires were collected throughout China. To understand consumers' intention to recycle EVs' retired batteries, a study using the theory of planned behavior, value-belief-norm (VBN) theory, and the benefit-risk analysis (BRA) model was combined with three extended factors, namely, recycling experience, policy incentives and product after-sales. The results of the study show that the positive effects of perceived behavioral control, subjective norms and VBN causal chains on intention to recycle are more evident. Furthermore, the results of a multigroup analysis of age, car ownership and regional groups show significant differences in demographic variables in terms of influencing consumers’ intention to recycle retired batteries. The findings of this study can better clarify the intention of consumers to recycle batteries, thereby providing a basis for the government and enterprises to formulate policies and measures.
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The concepts of Industry 4.0 and closed loop supply chains are becoming popular as logistics management evolves. Industry 4.0, through its instruments such as cloud manufacturing and the Internet of Things, has been known to improve operations management significantly. At the same time, closed loop supply chains have gained momentum with the increase in environmental sustainability issues. However, closed loop supply chains are often associated with uncertainties in the timing, quality, and quantity of returns. For these and other reasons, most organisations employ third parties to perform most reverse logistics activities. This paper systematically reviews the literature on the entry and use of third parties in reverse logistics with the objective of providing researchers with future research directions for this fast-emerging topic. The results show that there is a need to expand on the literature and on managerial issues such as performance measurement of reverse logistics networks with third parties. The literature also needs to consider how third parties use technological aspects such as Industry 4.0 to manage and operate reverse supply chains successfully.
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Report prepared for the Natural Resources Defense Council in New York City.
Article
Purpose Reverse logistics has attracted many industries due to product recalls, enormous waste generation, competitive reasons, vast opportunity in the waste management market, and to get the maximum value out of waste recovery. Selection of the right implementation strategy is vital for reverse logistics to function efficiently. Therefore, this research aims to evaluate the criteria for selecting reverse logistics strategy and help to choose the preferred strategy for its implementation. Design/methodology/approach Three reverse logistics implementation strategies, namely, in-house, joint venture and outsourcing, are proposed. A novel hybrid fuzzy analytical hierarchy process (F-AHP) and fuzzy measurement of alternatives and ranking according to COmpromise Solution (F-MARCOS) based framework is developed to fulfil the research objective. A survey is performed on Indian manufacturing industry to demonstrate the applicability of the proposed framework. Findings The result shows that government policy and regulations, reverse logistics risks and reduced emission have prime importance for a manufacturing industry which needs to implement reverse logistics into its supply chain. Outsourcing is the preferred reverse logistics strategy followed by joint venture and in-house that a manufacturing firm in India can implement. Research limitations/implications The research results are based on the responses of the survey received. This research considers various industry sectors to test the applicability of the framework. However, for actual implementation, this survey must first be limited to a particular industry as the results will apply to that industrial sector only. Practical implications This developed framework simplifies the procedure of selecting the strategy when the industry needs to implement reverse logistics. For industries working with a smaller set of criteria, this framework is a powerful and dynamic approach for reducing and choosing the most pertinent one that helps accomplish their objectives of reverse logistics implementation strategy selection. Originality/value Based on the literature and current applicability of reverse logistics, this research proposes three models to implement reverse logistics in Indian industries. A novel hybrid F-AHP and F-MARCOS based framework is developed to handle the selection of suitable reverse logistics strategy.
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This study explores the key variables that influence overall waste minimization behaviors of consumers by augmenting the theory of planned behavior (TPB) with additional variables, including environmental concern, perceived consumer effectiveness, and perceived lack of facilities. Further, subjective norm is replaced by injunctive norm and descriptive norm. A questionnaire was administered to 455 consumers from North America, a region that faces acute waste production challenges. The findings suggest that perceived consumer effectiveness (PCE) constitutes the most influential variable to predict zero waste behavior (ZWB) intentions (β = 0.380 p < 0.001), even surpassing perceived behavioral control (PBC) (β = 0.232 p < 0.001), PBC also directly influences ZWB (β = 0.321 p < 0.001), and injunctive norms (β = 0.171 p < 0.05) exert a slightly greater influence than attitudes (β = 0.122 p < 0.001). Importantly, environmental concern is a meaningful antecedent to all belief variables (i.e., control belief [β = 0.689 p < 0.001], normative belief [β = 0.378 p < 0.001], and behavioral belief [β = 0.367p < 0.001]) while exerting an indirect effect on ZWB (β = 0.474 [0.299, 0.523]), especially via attitudes and PBC. Albeit perceived lack of facilities negatively impacts intentions (β = −0.073 p < 0.05), it positively relates ZWB (β = 0.189 p < 0.001) or worsens the effect of intentions on ZWB (β = −0.033 [−0.102, 0.036]). The results deliver crucial insights to devise impactful strategies and formulate sound policies to nudge consumers’ ZWB. https://authors.elsevier.com/a/1dNt8,LlFPCdAS
Article
In a circular economy, extended producer responsibility (EPR) is a regulatory approach that accounts for all environmental costs associated with a product throughout its life cycle. When considering the EPR, the regulator must (1) design an integrated framework for different stakeholders and (2) provide effective policies to create financial incentives to accelerate the circular system. Recycling funds and subsidies are the most prominent financial strategies that can either encourage or curtail the flows of recycled products. In Indonesia, a few companies provided recycling bonus s to their customers as incentives to increase the recycling rate. However, the recycling rate was not as effective as expected by the enterprise because recycling was practiced by a limited number of companies, rendering it economically unviable. The enterprises hope the government could develop a recycling fund system. In order to develop the recycling fund system, a system dynamic model was proposed and simulated to optimize the recycling funds and subsidies based on decentralized reverse supply chains. Although it is not a novelty model; however, the research show a very significant results for the government in Indonesia. This enabled a more precise, well-planned, and sustainable decision-making process for the EPR. In addition, by utilizing the system dynamic model with different scenarios in a real case study (aseptic paper packaging waste), we found that the capacity of the recycler could become the reference for the funds to be paid by the importer-producer group, wherein the recycling rate will increase with an increase in the recycling fund.
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The implementation of the extended producer responsibility (EPR) for e-waste is an important measure to develop an ecological civilization. In order to advance manufacturing enterprises to effectively implement resource and environmental responsibility, this study investigates the main causes of environmental regulation failure from the perspective of government and enterprises. The game theory was used to establish an evolutionary game model between government regulatory departments and electronic and electrical products’ manufacturing enterprises. A system dynamic model was utilized to construct the stock-flow graph of the game between government and enterprises, and to carry out simulation analysis under different strategies. The results found that the probability of an enterprise undertaking extended responsibility gradually increased and stabilized with the increase of government supervision and punishment intensity; the government’s regulatory probability and punishment are important factors affecting the enterprises’ compliance with regulations and responsibilities. The study suggests that government should focus on strengthening environmental regulations from the aspects of improving laws and regulations, establishing a regular monitoring system and innovating incentive and constraint mechanism.
Article
Promoting the Extended Producer Responsibility (EPR) system in an all-round way has become an essential part of China’s environmental regulations. A tripartite game model among the Environmental Protection Bureau (EPB) department, producers and the public is constructed based on the non-cooperative evolutionary game theory. Then this paper uses a system dynamics method to simulate and analyze the proposed game model. It is found that benefits of “strict regulation” strategy and financial subsidies subsidized by a superior EPB help to ease behavioral conflicts among game players, but their positive moderating impacts are scant. Effects of administrative fines and rectification due to the “relaxed regulation” strategy are unpredictable, such that the principle of moderation must be taken into account when rewarding or punishing an inferior EPB. As far as the producer is concerned, policy compensation paid by the EPB department has a positive effect on easing conflicts, but the impact of administrative penalties exerted on the producer who violates EPR system behind the scenes is negative. The profit-making characteristic of producers makes the influence of EPR system acceptance cost uncertain, which also implies that a suitable policy system is beneficial to changing producers’ natural resistance to the EPR system. Noteworthy, effects of all the three factors on producers are lagging behind. Last but not least, under the premise of different environmental regulations, the public’s expectations of environmental protection play exactly the opposite role. This study provides detailed and enlightening suggestions to different countries for constructing a comprehensive EPR policy system.
Article
How to maximize the economic and environmental benefits of low-carbon behavior in enterprises deserves our attention and further discussion. Due to the uncertainties on the market of low-carbon production and waste production, we study a recycling and remanufacturing closed-loop supply chain consisting of one manufacturer, one retailer and two competing third-party recyclers with risk-aversion characteristics, and use the Stackelberg games to find equilibrium decisions of supply chain and its members. More importantly, we study the changes in expected utility of supply chain and its members brought by changes in four possibilities (carbon emission trading price, consumers’ low-carbon awareness, carbon emission and competition of third-party recyclers) in three emission reduction models. The results show that, firstly, carbon emission trading price, consumers’ low-carbon awareness and carbon emission are negatively correlated with the expected utility of manufacturer and retailer. Then, the third-party recyclers’ competition degree is negatively correlated with the expected utility of manufacturer and third-party recyclers. Moreover, revenue-sharing and cost-sharing contracts have little impact on manufacturer’ low-carbon production.
Article
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MSME sector is a respiratory system of the Indian economy and plays a vital role in the growth of the Indian economy. The existence of MSME is very much indispensable for the Indian economy. The year 2020 a Covid-19 year has collapsed or disrupted the Indian economy. The MSME sector is badly affected due to the pandemic of Covid-19. In the present paper, we have explained the impact of Covid-19 on the Indian MSME sector and tried to highlight some strategy or transformation which may helpful for the MSME sector to escape from the effect of the trap of Covid-19. We have also study about Atmanirbhar Bharat or self-reliant India, to what extent this slogan will be helpful for the MSME sector After studying the impact of Covid-19, it is very much indispensable for Indian MSME to change their business model which they are applying earlier. Some transformation which should be applied by MSME for smooth function and to reduce the impact of Covid-19 to some extent like digital practice, recurring revenue generation model, etc. Atmanirbhar Bharat or self-reliant India concept will be helpful for Indian MSME like job creation, encourage new entrepreneurs, etc. Keywords: MSME, Covid-19, Atmanirbhar Bharat, Indian economy.
Article
The global photovoltaic (PV) industry has been developing rapidly in recent years. We have to face the dilemma of waste PV modules at the end of their life. It is important for government to construct recycling system to collect waste PV modules in the future. This paper analyses the three recycling models under Extended Producer Responsibility (EPR) from the perspective of reverse supply chain. The Government Subsidy is taken into account in the recycling model as an incentive factor. This paper examines the level of the PV producer’s recycling responsibility which is expressed by the recycling proportion of producers. The results show that there are some general rules about recycling responsibility by comparing the results of different models. What’s more, a coordinating way is designed in mixed recycling model within a certain recycling scale range in order to cut down the producer’s recycling cost. Our research shows that the coordinating way is a great method with practical value when it is difficult for the government to implement a complete EPR system.
Research Proposal
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The main objective of this research is to design a robust Green Supply Chain Network (GrSCN) under uncertain and risky environment. The model considers the uncertainties of the market-related information, i.e. the demand. Addressing the retailer’s risk aversion level through Conditional Value at Risk (CVaR) to deal with these uncertainties leads to a bi-level programming problem. Since, the realization of the uncertain parameters is the only information available, a data-driven approach is employed to avoid distributional assumptions. The effectiveness of the model is finally demonstrated through a numerical example.
Article
Many electronic end-of-life (EOL) products are becoming obsolete sooner due to advances in technology. Hence, manufacturers hire third-party recyclers as subcontractors to recycle brand-name products. A complicated profile of recycling EOL products adds a significant cost burden to the third-party recyclers, while only the manufacturer has a superior understanding of the profile of recycling EOL products (homogeneity degree of EOL products). This paper describes the decision of the manufacturer and the third-party recycler in reverse supply chains under incomplete information of product homogeneity, which affects the unit profit of recycled products. The supply chain model assumes that customers receive reward money for returning obsolete products, and that the manufacturer as a leader and the third-party recycler as a follower determine the contract rent offered to the third-party recycler and the reward money paid to customers, respectively. Both the manufacturer and third-party recycler want to maximize their profit functions. We propose a game theoretical approach to search for the equilibrium contract rent for the third-party recycler and the equilibrium reward money for customers returning products for recycling. We conclude with a discussion of the impact of the contract rent and reward money on the equilibrium solution.
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As the use of personal computers (PCs) increases, their short life cycle and the fact that they contain many hazardous materials means that their retirement and disposal represents a significant environmental concern. Many communities are mandating the recycling of these PCs, to recover parts and materials, and to minimize the amount of waste landfilled or incinerated. An industry to recycle these PCs is evolving to take advantage of this stream of materials. At present, PC recycling is not profitable. This paper investigates the factors that most influence the net cost to recycle PCs so that PC manufacturers, recyclers and legislators may better develop products and policies to insure that it is cost effective to recycle PCs.
Article
Achieving eco-efficient production and consumption systems requires ‘closing the loop’ to create cyclic systems. Product systems based on remanufacturing, where used products or components are restored to ‘as new’ condition for reuse, offer the potential to create such cyclic systems. For some existing manufacturers, the economic efficiency of remanufacturing is clear and it has become a widely held assumption that such systems would also be more eco-efficient. However, this assumption has not been systematically tested. This research attempted to quantify the life cycle environmental benefits achieved by incorporating remanufacturing into a product system, based on a study of Xerox photocopiers in Australia. The study found that remanufacturing can reduce resource consumption and waste generation over the life cycle of a photocopier by up to a factor of 3, with greatest reductions if a product is designed for disassembly and remanufacturing. This research represents a first-level assessment, limited by certain estimates and assumptions. It is intended that this research will form the basis of a larger, more detailed study of Xerox remanufacturing, worldwide.
Article
Extended producer responsibility (EPR) is an emerging policy principle whose ultimate goal is to reduce environmental impact from the entire life cycle of a product/product system. Since the early 1990's, a number of countries began to incorporate the concept of EPR, especially in the form of take-back regulations. One of the product groups where application of EPR principle has been discussed and implemented is electrical and electronic equipment (EEE). A closer investigation of two EPR legislation for EEE in Europe and Asia -a decree enforced in the Netherlands, and an upcoming regulation in Japan – reveals the similarity and differences in the concrete formulation of EPR regulation. Some of issues that may be critical in the development and implementation of an EPR programme will be discussed in relation to each regulation. These focal issues, which are interrelated with each other, include: Driving forces, objectives of the legislation and their relation to requirements; Scope; Range of producer responsibility in terms of Types of responsibility; Different stages within end-of-life management; and Physical infrastructure and funding mechanism; and Historical and orphaned products. The paper attempts to see if the legislation facilitates the communication between the downstream of a product (end-of-life management phase) and the upstream (design phase), which distinguishes an EPR-based regulation from a mere take-back and recycling regulation.
Article
Achieving eco-efficient production and consumption systems requires ‘closing the loop’ to create cyclic systems. Product systems based on remanufacturing, where used products or components are restored to ‘as new’ condition for reuse, offer the potential to create such cyclic systems. For some existing manufacturers, the economic efficiency of remanufacturing is clear and it has become a widely held assumption that such systems would also be more eco-efficient. However, this assumption has not been systematically tested. This research attempted to quantify the life cycle environmental benefits achieved by incorporating remanufacturing into a product system, based on a study of Xerox photocopiers in Australia. The study found that remanufacturing can reduce resource consumption and waste generation over the life cycle of a photocopier by up to a factor of 3, with greatest reductions if a product is designed for disassembly and remanufacturing. This research represents a first-level assessment, limited by certain estimates and assumptions. It is intended that this research will form the basis of a larger, more detailed study of Xerox remanufacturing, worldwide.
Article
Realizing what is actually discussed as Sustainable Development, among others leads to the need of dematerializing our industrial economy. Here, one approach is to set up cyclical systems, connecting production, logistic and recycling processes in an environmentally-sound manner.This paper shows some of the latest results of the Fraunhofer IML's applied-research activities in this field with special regard to reverse logistics, disassembly and recycling. Thus, it gives an idea of some of the important aspects currently under discussion in the industry when setting up economically viable end-of-life solutions.Starting with a short overview on the legal situation and the responsibility of the producers for end-of-life products, this paper comes up with a new approach for systematically analyzing and modeling end-of-life networks. The last part discusses some real-life recycling networks using the Deutsche Telekom and AGR/Electrocycling, one of the biggest recyclers for electrical and electronic equipment in Germany, as well as the recycling of refrigerators as examples and shows ways of improving the existing and new systems from both an ecological and economical point of view.
Article
Electronic hubs--Internet-based intermediaries that host electronic marketplaces and mediate transactions among businesses--are generating a lot of interest. Companies like Ariba, Chemdex, and Commerce One have already attained breathtaking stock market capitalizations. Venture capitalists are pouring money into more business-to-business start-ups. Even industrial stalwarts like GM and Ford are making plans to set up their own Web markets. As new entrants with new business models pour into the business-to-business space, it's increasingly difficult to make sense of the landscape. This article provides a blueprint of the e-hub arena. The authors start by looking at the two dimensions of purchasing: what businesses buy--manufacturing inputs or operating inputs--and how they buy--through systematic sourcing or spot sourcing. They classify B2B e-hubs into four categories: MRO hubs, yield managers, exchanges, and catalog hubs, and they discuss each type in detail. Drilling deeper into this B2B matrix, the authors look at how e-hubs create value--through aggregation and matching--and explain when each mechanism works best. They also examine the biases of e-hubs. Although many e-hubs are neutral--they're operated by independent third parties--some favor the buyers or sellers. The authors explain the differences and discuss the pros and cons of each position. The B2B marketplace is changing rapidly. This framework helps buyers, sellers, and market makers navigate the landscape by explaining what the different hubs do and how they add the most value.
Intelligent management of product recov-ery
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Industrial remanufacturing of WEEE requires an effective reverse logistics
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Overcoming economic barriers of demanufacturing and asset recovery
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Focus report: Selling stewardship to your board: remanufacturing and the bottom line
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Overcoming economic barriers of demanufacturing and asset recovery
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An overview of the disassembly modeling language and the disassembly model analyzer
  • Spicer
Intelligent management of product recovery
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