Design Principles for Closed Loop Supply Chains

19 Pages Posted: 21 Feb 2003

See all articles by H. R. Krikke

H. R. Krikke

Tilburg University - Center and Faculty of Economics and Business Administration

Costas P. Pappis

University of Piraeus - Department of Industrial Management

Giannis T. Tsoulfas

University of Piraeus - Department of Industrial Management

Jacqueline M. Bloemhof-Ruwaard

Erasmus University Rotterdam (EUR) - Department of Technology and Operations Management; Erasmus Research Institute of Management (ERIM); Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM)

Date Written: November 6, 2001

Abstract

In this paper we study design principles for closed loop supply chains. Closed loop supply chains aim at closing material flows thereby limiting emission and residual waste, but also providing customer service at low cost. We study 'traditional' and 'new' design principles known in the literature. It appears that setting up closed loop supply chains requires some additional design principles because of sustainability requirements. At the same time however, we see that traditional principles also apply. Subsequently we look at a business situation at Honeywell. Here, only a subset of the relevant design principles is applied. The apparent low status of reverse logistics may provide an explanation for this. To some extent, the same mistakes are made again as were 20 years ago in, for instance, inbound logistics. Thus, obvious improvements can be made by applying traditional principles. Also new principles, which require a life cycle driven approach, need to be applied. This can be supported by advanced management tools such as LCA and LCC.

Keywords: closed loop supply chains, case-study, reverse logistics

JEL Classification: M, M11, R4, R49

Suggested Citation

Krikke, H. R. R. and Pappis, Costas P. and Tsoulfas, Giannis T. and Bloemhof-Ruwaard, Jacqueline M., Design Principles for Closed Loop Supply Chains (November 6, 2001). ERIM Report Series Reference No. ERS-2001-62-LIS. Available at SSRN: https://ssrn.com/abstract=370922

H. R. R. Krikke (Contact Author)

Tilburg University - Center and Faculty of Economics and Business Administration ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

Costas P. Pappis

University of Piraeus - Department of Industrial Management ( email )

80, Karaoli & Dimitriou Str.
18534 Piraeus
Greece

Giannis T. Tsoulfas

University of Piraeus - Department of Industrial Management ( email )

80, Karaoli & Dimitriou Str.
18534 Piraeus
Greece

Jacqueline M. Bloemhof-Ruwaard

Erasmus University Rotterdam (EUR) - Department of Technology and Operations Management ( email )

RSM Erasmus University
PO Box 1738
3000 DR Rotterdam
Netherlands

Erasmus Research Institute of Management (ERIM)

P.O. Box 1738
3000 DR Rotterdam
Netherlands

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM) ( email )

P.O. Box 1738
Room T08-21
3000 DR Rotterdam, 3000 DR
Netherlands

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