Crucial Issues in Closed-loop Supply Chain Design

Although many quantitative models have been reported in the literature for designing a supply chain, none of them address issues that are crucial for the supply chain to successfully operate in a closedloop. To that end, we examine the following: (i) selection of economical products to process, (ii) identification of efficient production facilities in the region where the supply chain is to be designed, (iii) optimal transportation of products across the supply chain, (iv) prediction of success potentials of collection centers that are being considered for inclusion in the supply chain, (v) sale of used products on potential second-hand markets, (vi) evaluation of marketing method – especially in the reverse supply chain, and (vii) involvement of consumers and local government, along with company executives, in decision-making. Possible strategies to approach these issues are also suggested. MOTIVATION While a forward supply chain is a series of activities required to produce new products from raw materials and distribute them to consumers, a reverse supply chain is a series of activities