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Firms that aim to close the loop via remanufacturing returned products face uncertainties on both the demand and supply side. Inspired by industrial circular business models, we study the capacity investment problem of a manufacturer. The manufacturer can invest in a flexible (shared) resource to share capacity across processes and/or less costly dedicated manufacturing and remanufacturing resources. We model the capacity investment problem as a two-stage stochastic programme and provide structural results. Our analysis shows how the optimal resource selection depends on margin (price) and cost differentials and highlights the focal role of capacity coefficients. We identify conditions under which an investment in flexibility is beneficial even if remanufacturing is a lower-margin process. Moreover, an investment in flexible capacity can be optimal if demand and returns are perfectly positively correlated, and thus, return risk is eliminated. Contrary to intuition, optimal profits may decrease in demand-return correlation if the optimal investment includes a flexible resource. The analysis of investment thresholds shows two benefits of resource flexibility: (a) mitigation of demand and return mismatches and (b) an ex-post revenue maximisation option to allocate capacity to the more profitable process. [ABSTRACT FROM AUTHOR]

To deal with the growing amount of e-waste propelled by introduction of new products, increasing governments are considering amending take-back regulations to impose more stringent collection targets. Motivated by this trend, this study focuses on the reuse policy for e-waste with three factors: product innovation degrees, collection targets, and reuse decisions. We first confirm the traditional wisdom that a higher innovation degree often results in a higher profitability but hurts the environment. As such, we agree with the suggestion that the environmental agencies need to impose more stringent collection targets to deal with the growing amount of e-waste propelled by new product introduction. Moreover, our analysis further indicates that the more stringent collection target results in an inverted U-shaped curve for profitability and lower environmental impact. Therefore, besides confirming the intuitive expectation, we also add a word of caution on the recast of WEEE Direct: although tightening the overall collection target for the OEM is a powerful tool, we still call for the governments and environmental agencies, rather proceeding from the entire industry, should amend take-back regulations to set detailed collection targets based on the specific products characterised by the rate of innovation. [ABSTRACT FROM AUTHOR]

Composite materials use recently increased, although treatments at their End of Life are inexistent or highly inefficient (from the environmental perspective). Thus, openness to cooperation is needed, supported by methodologies for design for de-manufacturing. The approach proposed in the present work aims at transforming industrial processes' scraps and off-specification pieces in primary materials, through re-design, without the risk of cannibalisation. It is mainly intended for industrial processes of composite materials; its objective is to find alternative applications to their invaluable final disposal and supports the merging of existing supply chains (Industrial Symbiosis). Nevertheless, it can be easily extended to non-composite and/or non-scraps. Re-design enables the establishment of waste-to-treasure composite scraps' life cycles and is evaluated through Life Cycle Assessment. The application of the approach involved four Italian companies and results reveal that industrial symbiosis can reduce emissions (from −45% to more than −90%). Guidelines were outlined: involve End of Life operators to know how waste treatments, share information, favour networking and proximity, apply design for disassembly principles, consider simple shapes and modularity during (re)design. Future works will focus on off-the-shelf components and the economic evaluation of the proposed de-manufacturing actions and supply strategies. [ABSTRACT FROM AUTHOR]

The extensive use of external thermal insulation composite systems (ETICS) using expanded polystyrene (EPS) for building insulation in Germany has resulted in accumulating end-of-life EPS-ETICS. To address limited waste management options and enhance EPS circularity, alternative recycling options like pyrolysis or solvent-based recycling need to be implemented. However, efficient recycling requires ex-ante analyses of the corresponding reverse logistics networks, including all necessary pre-treatment and transport processes. This study aims to develop a decision support system to determine optimal EPS-ETICS waste management by minimising the net present value of the corresponding network design. Our mixed-integer linear optimisation model considers decisions on technology, capacity, and location for pre-processing and recycling facilities as well as on material flow allocation. Applied to a German case study, our model finds pyrolysis and solvent-based recycling economically superior to current waste treatment in waste incineration plants. We present an optimal network design combining central pyrolysis with decentral pre-processing. A scenario analysis shows fluctuating styrene and polystyrene prices might favour solvent-based recycling over the optimal choice in pyrolysis, with minor overall cost differences. Further, legal recycling quotas of at least 40% would be necessary to promote solvent-based recycling and enhance EPS circularity beyond what is achievable through pyrolysis. [ABSTRACT FROM AUTHOR]

Despite the exponential growth of artificial intelligence (AI) research in operations, supply chain, and productions management literature, empirical insights on how organisational behavioural mechanisms at the human–technology interface will facilitate AI adoption in small- and medium-sized enterprises (SMEs), and subsequent impact of the adoption on sustainable practices and supply chain resilience (SCR) is under-researched. To bridge these gaps, we integrate resource orchestration and knowledge-based view theoretical perspectives to develop a novel structural model examining antecedents to SCR and AI adoption, considering AI adoption as a pivot for facilitating SCR. The structural equation modelling technique was employed on the data collected from 280 Vietnamese manufacturing SMEs' operations managers. Our results demonstrate that leadership will drive AI adoption by creating a data-driven, digital and conducive culture, and strengthening employee skills and competencies. Furthermore, AI adoption positively influences CE practices, SC agility and risk management, which will help to achieve SCR. For managers, the importance of internal organisational employee-centric mechanisms to create value from AI adoption without impeding business value is highlighted. We reveal the enablers that will help in transforming SMEs to become resilient by deriving appropriate responses to unprecedented disruptions through data-driven decision-making leveraging AI adoption. [ABSTRACT FROM AUTHOR]

In this study, we develop a new paradigm, Circular Lean Six Sigma 4.0 (CLSS4.0) to promote manufacturing sustainability. This paper aims to provide a practical and holistic view of the drivers and barriers that can help companies design an integrated CLSS4.0 model. The paper is based on a qualitative exploratory study using multiple case studies within 12 Moroccan manufacturing firms conducted through semi-structured interviews with top executive managers. The results show that the drivers are related to expected operational and environmental performance, increasing customer requirements, gaining competitive advantage and market growth while barriers are related to insufficient tangible (finance, human and equipment) and intangible (skills and techniques) resources, data privacy, technical issues and management support. The proposed framework identifies the assessment of drivers and barriers and their attributes as a starting point for managers to lead the CLSS4.0 transformation, thereby contributing to its successful implementation. To the best of our knowledge, this study is among the very first studies to discuss the CLSS4.0 drivers and barriers. It could be useful to managers as a diagnostic tool to assess their ability to implement CLSS4.0 before investing in the initiative. [ABSTRACT FROM AUTHOR]

A circular economy is a "closed-loop" system designed so that products flow back into the production cycle after use. With many companies implementing take-back programs as part of their sustainability strategy, a fundamental shift in consumption has occurred, with consumers considering disposal during and even before purchase decision making. Eight experiments reveal that consumers indicate a greater willingness to pay for circular program products. An increase in psychological ownership underlies the difference in product valuation. Specifically, the additional disposal control uniquely afforded by circular products increases the capacity of circular take-back program products to evoke psychological ownership. The process explanation is directly tested through mediation. Experimentally manipulating antecedents of psychological ownership (i.e., disposal control and psychological ownership) provides further support for the conceptual framework. [ABSTRACT FROM AUTHOR]

In this paper, we are interested in modelling and solving a flow and resource planning problem related to the trade-in, treatment and resale of pre-owned consumer electronic products. This problem is motivated and inspired by the flows and the processes of the company Recommerce Group, which mainly handles traded-in used smartphones in Europe, but also used tablets, smartwatches, game consoles, laptops, etc. Collected products must be directed to refurbishment centres. After having been recorded, cleaned, tested and reset, they may be refurbished, or remanufactured by a subcontractor. They may also remain in their initial state. Finally, they are sold on diversified channels. This problem can be generalised to other refurbishment and remanufacturing activities of used consumer electronic products. We first formulate the problem as a mixed-integer linear program and show its NP-hardness. In order to solve large size real-life instances, mixed-integer programming based heuristic approaches are proposed. Extensive computational experiments on realistic instances are conducted to show the advantages and the limits of the proposed approaches. Several managerial insights are investigated and analysed. [ABSTRACT FROM AUTHOR]

The circular economy has become a promising solution to electronic product reuse. The advanced technology of Industry 4.0 drives the recycling platform (RP) to carry out a variety of new business modes, which are important ways to realise a circular economy. In this article, we consider a monopolistic RP under trade-in for new mode, leasing mode, or their mixed mode, respectively. We develop a discrete-time game with infinite periods and use the Markov decision and Bellman equation to obtain the consumer's perfect equilibria consumption strategies. By comparing different modes under RP's profits, consumer surplus, and environment impact perspectives, we find that when the durability of leased refurbished product exceeds that of the resold refurbished ones, the mixed mode is better than the trade-in for new mode, which can achieve more platform profits, more consumer surplus, and less environment impact. By considering the three perspectives together, the mixed mode is not always better than the other two modes. The mixed mode is optimal only when the durability of leased refurbished one is relatively high. We also conduct extensive numerical research, show optimal service mode under three perspectives, and extend the effects of different qualities of recycled used products on optimal mode. [ABSTRACT FROM AUTHOR]

The circular economy (CE) seeks to maintain products and materials at their highest utility and value. The organisational and governmental policy have seised onto the CE philosophy to advance socio-economic and environmental development. CE remains an essentially contested concept – making its utilisation as a foundation for managerial and policy decisions challenging. Circularity assessment has not been systematically adopted, especially within supply chain management. Using critical scholarly and practical evidential foundation, we proposed a comprehensive set of metrics that can be utilised in supplier selection, monitoring, and development for circularity. These metrics include the macro, meso, and micro levels. A group decision-making method integrating best-worst method (BWM), regret theory (RT), and dual hesitant fuzzy sets (DHFS) for circular economy and circularity (CEC) supplier evaluation and selection is introduced – providing instrumental value for the identified metrics typology. The proposed BWM-DHFE-RT integrative analytical method can accommodate decisionmaker psychological behaviour under uncertainty while simultaneously capturing divergent or conflicting opinions of different decision-makers. An illustrative business scenario is utilised to demonstrate the application of the proposed method. Though the proposed CE performance metrics and methodology are used for CEC supplier management reasons they have broader applicability. Future research and application directions are discussed. [ABSTRACT FROM AUTHOR]

Amid the escalating environmental crises and economic disparities, Circular Economy (CE) has garnered recognition as a pragmatic mechanism for achieving Sustainable Development Goals (SDGs). In response, several supply chain organisations are integrating CE strategies into their business operations and production processes. Despite these developments and since the introduction of Business Charter for Sustainable Development by the International Chamber of Commerce in 1991, the academic corpus comprehensively connecting CE research themes, catalysts, deterrents, practices with the SDGs has remained limited. To bridge this gap, we present a systematic literature review (SLR) of CE research in operations, supply chain and production management encompassing a time span of 31 years (January 1991 – June 2022), by sourcing, screening, and analysing articles obtained from multiple research databases. Our thematic coding analysis generated ten research themes, and subsequently linking them with relevant SDGs. Additionally, we interweaved CE catalysts and deterrents, establishing a connection with the SDGs. This is further enriched with CE strategies aimed at equipping business practitioners to enhance sustainable business performance and contributing to specific SDGs. Lastly, we delineate CE knowledge data management and priority actions frameworks to aid organisations to enhance employee capability and actively leverage digital technologies for implementing CE strategies. [ABSTRACT FROM AUTHOR]

More practitioners are embracing blockchain technology to improve recycling performance. However, current research on the use of blockchain is mostly confined to general discussions on sustainable supply chains and circular economy, with limited studies specifically focusing on the recycling chain. This paper conducts a thorough content-based review of the literature related to the application of blockchain technology in the recycling chain with the objective to identify a conceptual framework. Although descriptive and thematic analyses show limited developments, blockchain technology can offer four distinct functions in the recycling chain: transparency, integration, behaviour channelisation, and service transformation. The adoption of blockchain in this area has technical, organisational, and environmental limitations that have not been overcome yet. In terms of benefits, blockchain technology improves recycling performance in terms of cost, dependability, flexibility, sustainability, and risk reduction. To summarise the findings, the paper proposes a novel conceptual framework for blockchain implementations in the recycling chain to support practitioners and guide scholars in further blockchain technology exploration. [ABSTRACT FROM AUTHOR]

Circular economy (CE) is necessary for achieving sustainability goals. Nonetheless, the distillation of CE practices into business operations has been unsatisfactory as firms struggle to transition to CE. There is an increase in studies that have attempted to identify challenges impeding the implementation of CE practices. However, most of these studies focus on technical and external aspects affecting CE, leaving intra-organisational aspects such as organisational learning and knowledge largely unexplored. The latter aspects can play a significant role in CE transitions, and thus warrants further research. To address this research gap, this study draws on lean thinking as an organisational learning system and accentuates knowledge obstacles, seen as wastes, that can stifle a transition to CE. Subsequently, it deploys action-learning research, involving collaboration between researchers and the participants in the action to generate actionable knowledge. The analysis of the findings is used to develop a novel framework including six measures that can be implemented to counteract knowledge obstacles and lay a foundation for a CE transition. The proposed framework can be the basis for further research on lean and intra-organisational aspects that can help firms restructure the current linear mode of production, and thus accelerate a smooth CE transition. [ABSTRACT FROM AUTHOR]

This research examines how consumers value, over time, their possessions in the domestic space. We focus on the large amount of clothing kept in the household, given the critical issues of sustainability that are raised by this practice. Using in-depth interviews and wardrobe ethnography, we unpack the role of rituals in consumers' valuation of these possessions. The findings show that some possessions become dormant due to various failures in rituals. Dormant possessions are those pending revalorisation, which may be carried out by consumers themselves or through their use of services, specifically those related to circular economy. We identify and theorise reinvestment rituals, a new form of rituals that allow for revalorisation and extension of the life of a possession. This research highlights the value dynamics at play in the consumer – possession relationship and has implications for a strong sustainability approach on the part of consumers, managers, and policymakers. [ABSTRACT FROM AUTHOR]