Corporate social responsibility in a closed-loop supply chain with dual-channel waste recycling

Abstract

This paper proposes a socially responsible closed-loop supply chain for waste recycling. To produce the finished product from wastes, two different cases of recycling are considered -- either the manufacturer or the recycler does the recycling. The manufacturer puts effort to increase the demand for the finished product due to its corporate social responsibility (CSR). Different game models are developed in each case. Optimal decisions are obtained analytically and also through a numerical example. It is seen that though the manufacturer bears an extra cost to put effort for increasing the demand, the supply chain members can reach a win-win situation through a suitable revenue and cost sharing contract. It is further observed that recycling by the recycler is beneficial to the supply chain in comparison to the recycling done by the manufacturer itself. Sensitivity analysis depicts the overall performance of the supply chain with demand sensitive parameters.

Keywords:

• Closed-loop supply chain
• dual-channel recycling
• corporate social responsibility
• revenue and cost sharing contract

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Funding

This work is supported by Department of Science and Technology (DST), Government of India [IF160485].

Notes on contributors

Sushil Kumar Dey

Sushil Kumar Dey is a Research scholar in the Department of Mathematics, Jadavpur University, Kolkata, India. He received his B.Sc. and M.Sc. degrees in Mathematics from Jadavpur University, India. His research interests include supply chain management, sustainability, etc.

Bibhas C. Giri

Bibhas C. Giri is a Professor in the Department of Mathematics, Jadavpur University, Kolkata, India. He did his M.S. in Mathematics and Ph.D. in Operations Research both from Jadavpur University, Kolkata, India. His research interests include inventory/supply chain management, production planning and scheduling, reliability and maintenance, and his research papers have appeared in Naval Research Logistics, International Journal of Production Research, OMEGA, Journal of the Operational Research Society, European Journal of Operational Research, International Journal of Production Economics, Journal of Cleaner Production, and other journals. He was a JSPS Research Fellow at Hiroshima University, Japan, during the period 2002-2004, Humboldt Research Fellow at Mannheim University, Germany, during the period 2007-2008 and a Fulbright-Nehru Senior Research Fellow at Louisiana State University, USA, in 2012.