OM Forum—New Opportunities for Operations Management Research in Sustainability

Agrawal, Vishal; Atasu, Atalay; Wassenhove, Luk N. Van

doi:10.1287/msom.2017.0699

Cited by 120 publications

(77 citation statements)

References 50 publications

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“…More recently, a circular economy movement has been developed by the Ellen MacArthur Foundation in Europe that aims to create business models for improving environmental sustainability. Agrawal et al (2019) articulated three elements of the circular economy movement and proposed new OM research opportunities. These three elements are (1) reverse flows (there is a need to develop better processes to increase returns, repair, refurbish, recycling, and remanufacturing), (2) circular design (there is a need to develop new product designs that can improve durability [i.e., to reduce], repairability [i.e., to reuse], and recyclability [i.e., to recycle]), and (3) circular business model (there is a need to create new business models [e.g., leasing, renting, and sharing] to reduce, reuse, or recycle).…”

Section: Changes In Om Research: Environmentalmentioning

confidence: 99%

Twenty Years in the Making: The Evolution of the Journal of Manufacturing & Service Operations Management

Dai

Feng

Tang

et al. 2020

M&SOM

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Please scroll down for article-it is on subsequent pages With 12,500 members from nearly 90 countries, INFORMS is the largest international association of operations research (O.R.) and analytics professionals and students. INFORMS provides unique networking and learning opportunities for individual professionals, and organizations of all types and sizes, to better understand and use O.R. and analytics tools and methods to transform strategic visions and achieve better outcomes. For more information on INFORMS, its publications, membership, or meetings visit http://www.informs.org

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Section: Changes In Om Research: Environmentalmentioning

confidence: 99%

Twenty Years in the Making: The Evolution of the Journal of Manufacturing & Service Operations Management

Dai

Feng

Tang

et al. 2020

M&SOM

View full text Add to dashboard Cite

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“…Drake and Spinler point out the drivers underlying sustainability as a management issue [32]. Agrawal et al introduce the current trend of the circular economy movement in practice and point out several open questions inspired by four sample companies [7].…”

Section: Environmental Sustainability Operationmentioning

confidence: 99%

“…While under low-end recovery manufacturers prolong the service life of used products as low-end substitutes after being repaired, refurbished, or remanufactured [6]. This strategy is typically adopted by Patagonia, an outdoor apparel firm who encouraged consumers to repair their products instead of discarding them by offering free repairs [7].…”

Section: Introductionmentioning

confidence: 99%

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Quality Recovery or Low-End Recovery? Profitability and Environmental Impact of Durable Product Recovery

2019

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With the rising awareness of environmental responsibility in industrial production, a series of recovery strategies have been developed and play different roles in achieving sustainability. In this study, we examine when quality recovery, low-end recovery, and hybrid recovery result in a win-win outcome where both profitability and environmental performance can be improved for a durable product manufacturer. We develop a game-theoretic model to analyze the manufacturer’s payoffs under different recovery strategies. A secondary market where used products can be resold among consumers is also considered. We obtain the results by comparing the profitability and environmental impact under each recovery strategy. Hybrid recovery causes both synergy and a contradiction effect between quality and low-end recovery. It always improves the win-win outcome of low-end recovery and it can also improve the win-win outcome of quality recovery under a high recovery standard when the recovered value is not too high. The technology improvement only achieves environmental sustainability under sufficient stringent recovery standard, otherwise, it may backfire and deteriorate the environment. We offer insights for the policymaker to understand the role of the recovery standard in achieving the win-win outcome and the importance of setting a proper recovery standard in achieving environmental sustainability.

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“…In the circular economy, the products are designed to enable cycles of disassembly and reuse; thus, reducing or eliminating waste. Closing the loop is an important block of the circular economy building [1,2]. Many companies, such as HP, Apple, Huawei, and so on, have been successfully realized the closed-loop business model.…”

Section: Introductionmentioning

confidence: 99%

Joint Advertisement and Trade-In Marketing Strategy in Closed-Loop Supply Chain

Chen

Dong

et al. 2020

Sustainability

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With environmental problems becoming severe, many firms, including HP, Huawei, and Apple are simultaneously implementing trade-in programs and advertising to stimulate market demand. Offering trade-in service by the manufacturer is a method of price discrimination by providing replacement consumers with a rebate when they purchase new products. With the recycled, used products, the manufacturer can benefit through a strict series—via a remanufacturing process. Although numerous literatures have investigated the pricing strategy and advertising decisions in the closed-loop supply chain (CLSC), to the best of our knowledge, there is little research that analyzes and compares the economic and social performance of these two marketing strategies. To fill this gap, we establish two supply chain models with two periods, namely, an advertisement model and a joint model, while the equilibrium purchasing behavior of the replacement consumers can be characterized under three conditions: (1) all of the replacement consumers purchasing new products (ATA); (2) partial replacement consumers purchasing (PTA); (3) no replacement consumers purchasing (NTA). These three conditions are decided by the numerous relationships of the parameters. Solving the optimal decisions of the manufacturer in both models, the critical value in the joint model is higher in the advertisement model, which indicates that developing the trade-in program can enhance the robustness of the business model. Furthermore, through numerical example, we find that the market demand in the joint model is higher than in the advertisement model, and the cost of marketing strategy in the joint model is lower in the advertisement model, which means that the efficiency of the marketing strategy is higher than the single marketing strategy. As a result, comparing the economic and social performance between the two models, we conclude that the advertisement elasticity of the market demand is the key factor of the manufacturer’s profits and total social welfare.

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OM Forum—New Opportunities for Operations Management Research in Sustainability

Cited by 120 publications

References 50 publications

Twenty Years in the Making: The Evolution of the Journal of Manufacturing & Service Operations Management

Twenty Years in the Making: The Evolution of the Journal of Manufacturing & Service Operations Management

Quality Recovery or Low-End Recovery? Profitability and Environmental Impact of Durable Product Recovery

Joint Advertisement and Trade-In Marketing Strategy in Closed-Loop Supply Chain

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