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Circular Supply Chain Network Design for E-commerce

Year 2024, , 840 - 852, 01.06.2024
https://doi.org/10.35378/gujs.1234548

Abstract

There is a growing attention to circular economy through researchers, enterprises and governments. The idea of circular economy is to give no harm to environment while using material till the end of its life and keeping it as much as possible in the cycle. From this point of view, to keep the material in cycle might be possible with a well-designed logistics infrastructure. In this study, the small and medium size enterprises (SMEs) that make sales through e-commerce and the way of handling returns are brought forward. A case study is created for footware industry in Istanbul and a circular supply chain network design is proposed. Afterwards, a linear programming is applied to minimize cost. This study gives a clear and simple solution for SMEs to minimize the cost for handling returns while keeping them in the cycle.

References

  • 1] https://ellenmacarthurfoundation.org/eliminate-waste-and-pollution. Access date: 08.05.2022
  • [2] Zhou, S., Smulders, S., "Closing the loop in circular economy: Saving resources or suffocating innovation?", European Economic Review, 139: 103857, (2021).
  • [3] Seroka-Stolka, O., Ociepa-Kubicka, A., "Green logistics and circular economy", Transportation Research Procedia, 39: 471-479, (2019).
  • [4] Zhang, A., Duong, L., Seuring, S. and Hartley, J.L., "Circular supply chain management: A bibliometric analysis-based literature review", International Journal of Logistics Management, 34(3): 847-872, (2023).
  • [5] Farooque, M., Zhang,A., Thurer, M., Qu, T. and Huisingh, D., "Circular supply chain management: A definition and structured literature review", Journal of Cleaner Production, 228: 882-900, (2019).
  • [6] Prajapati, D., Pratap, S., Zhang, M., Lakshay and Huang, G., "Sustainable forward reverse logistics for multi-product delivery and pickup in B2C e-commerce towars the circular economy", International Journal of Production Economics, 253: 108606, (2022).
  • 7] Jaller, M., Pahwa, A., "Evaluating the environmental impact of online-shopping: A behavioral and transportation approach", Transportation Research Part D, 80: 102223, (2020).
  • [8] Kiba-Janiak, M., Cheba, K., Witkowski, J., Jagoda, A., Skowronska, A., Kolakowski, T., Baraniecka, A., Marcinkowski, J. and Mucowska, M., "Sustainable city logistics of last-mile and returns on the e-commerce market, various groups of stakeholders' perspective- Aims and scope of the project", ACC Journal, 28(2): 44-53, (2022).
  • [9] De Souza, E., Kerber, J., Bouzon, M. and Rodriguez, C., "Performance evaluation of green logistics: Paving the way towards circular economy", Cleaner Logistics and Supply Chain, 3: 100019, (2022).
  • [10] https://thedocs.worldbank.org/en/doc/908481507403754670-0330212017/original/AnnualReport2017WBG.pdf. Access date: 26.11.2022
  • [11] Hawks, K., "What is reverse logistics?", Reverse Logistics Magazine, Winter/Spring, (2006).
  • [12] Guarnieri, P., Cerqueira-Streit, J. and Batista, L., "Reverse logistics and the sectoral agreement of packaging industry in Brazil towards a transition to circular economy", Resources, Conservation and Recycling, 153: 104541, (2020).
  • [13] Roudbari, E., Ghomi, S., and Sajadieh, M., "Reverse logistics network design for product reuse, remanufacturing, recycling and refurbishing under uncertainty", Journal of Manufacturing Systems, 60: 473-486, (2021).
  • [14] Das, D., Kumar, R. and Rajak, M., "Designing a reverse logistics network for an e-commerce firm: A case study", Operations and Supply Chain Management, 1(13): 48-63, (2020).
  • [15] Asif.F., Bianchi, C., Rashid, A. and Nicolescu, C., "Performans analysis of closed-loop supply chain", Journal of Remanufacturing, 2(4): 1-21, (2012).
  • [16] Bhatia, M., Srivastava, R. and Jakhar, S., "What's critical for closed-loopes supply chain operations? - Finding from the Indian small and medium manufacturing enterprises", Journal of Cleaner Production, 372: 133791, (2022).
  • [17] Nanayakkara, P., Jayalath, M. and Thibbotuwawa, A., "A circular reverse logistics framework for handling e-commerce returns", Cleaner Logistics and Supply Chain, 5: 100080, (2022).
  • [18] Dutta, P., Mishra, A., Khandelwal, S. and Katthawala, I., "A multiobjective optimization model for sustainable reverse logistics in Indian e-commerce market", Journal of Cleaner Production, 249: 119348, (2020).
  • [19] https://www.statista.com/statistics/379046/worldwide-retail-e-commerce-sales/. Access date: 26.11.2022
  • [20] Zennaro, I., Finco, S., Calzavara, M. and Persona, A., "Implementing e-commerce from logistics perspective: Literature revies and methodological framework", Sustainability, 14: 911, (2022).
  • [21] https://www.business2community.com/infographics/e-commerce-product-return-statistics-trends-infographic-01505394. Access date: 26.11.2022
  • [22] https://www.salecycle.com/blog/featured/ecommerce-returns-2018-stats-trends/. Access date: 26.11.2022
  • [23] https://www.sbb.gov.tr/wp-content/uploads/2021/01/Perakende_E-Ticaretin_Yukselisi.pdf. Access date: 26.11.2022
  • [24] XiaoYan, Q., Yong, H. and Qinli, D., "Reverse logistics network design model based on e-commerce", International Journal of Organizational Analysis, 20(2): 251-261, (2012).
  • [25] Liu, D., "Network site optimization of reverse logistics for e-commerce based on generic algorithm", Neural Comput and Applic, 25: 67-71, (2014).
  • [26a] Guo, J., Liu, X. and Jo, J., "Dynamic joint construction and optimal operation strategy of multi-period reverse logistics network: A case study of Shanghai apparel e-commerce enterprises", J Intell Manufacturing, 28: 819-831, (2017).
  • [26b] Guo, J., Wang, X., Fan, S. and Gen, M., "Forward and reverse logistics network and route planning under the environment of low-carbon emissions: A case study of Shanghai fresh food e-commerce enterprises", Computers and Industrial Engineering, 106:351-360, (2017).
  • [27] Govindan, K., Nosrati-Abarghooee, S. and Nasiri, M.M., "Green reverse logistics network design for medical waste management: A circular economy transition through case approach", Journal of Environmental Management, 322: 115888, (2022).
  • [28] https://www.kalkinmakutuphanesi.gov.tr/assets/upload/dosyalar/7-ayakkabi-tekstil.pdf. Access date: 03.01.2023.
  • [29] https://www.salecycle.com/blog/featured/ecommerce-returns-2018-stats-trends/. Access date: 03.01.2023
  • [30] https://ellenmacarthurfoundation.org/topics/circular-economy-introduction/overview. Access date: 17.07.2023
  • [31] Meier, O., Gruchmann, T. and Ivanov, D., “Circular supply chain management with blockchain technology: A dynamic capabilities view”, Transportation Research Part E, 176: 103177, (2023).
  • [32] Lemke, J., Iwan, S. and Korczak, J., “Usability of the parcel lockers from the customer perspective-The research in Polish cities”, Transportation Research Procedia, 16: 272-287, (2016).
  • [33] Cano, J.A., Londono-Pineda, A. and Rodas, C., “Sustainable logistics for e-commerce: A literature review and bibliometric analysis”, Sustainability, 19(14): 12247, (2022).
Year 2024, , 840 - 852, 01.06.2024
https://doi.org/10.35378/gujs.1234548

Abstract

References

  • 1] https://ellenmacarthurfoundation.org/eliminate-waste-and-pollution. Access date: 08.05.2022
  • [2] Zhou, S., Smulders, S., "Closing the loop in circular economy: Saving resources or suffocating innovation?", European Economic Review, 139: 103857, (2021).
  • [3] Seroka-Stolka, O., Ociepa-Kubicka, A., "Green logistics and circular economy", Transportation Research Procedia, 39: 471-479, (2019).
  • [4] Zhang, A., Duong, L., Seuring, S. and Hartley, J.L., "Circular supply chain management: A bibliometric analysis-based literature review", International Journal of Logistics Management, 34(3): 847-872, (2023).
  • [5] Farooque, M., Zhang,A., Thurer, M., Qu, T. and Huisingh, D., "Circular supply chain management: A definition and structured literature review", Journal of Cleaner Production, 228: 882-900, (2019).
  • [6] Prajapati, D., Pratap, S., Zhang, M., Lakshay and Huang, G., "Sustainable forward reverse logistics for multi-product delivery and pickup in B2C e-commerce towars the circular economy", International Journal of Production Economics, 253: 108606, (2022).
  • 7] Jaller, M., Pahwa, A., "Evaluating the environmental impact of online-shopping: A behavioral and transportation approach", Transportation Research Part D, 80: 102223, (2020).
  • [8] Kiba-Janiak, M., Cheba, K., Witkowski, J., Jagoda, A., Skowronska, A., Kolakowski, T., Baraniecka, A., Marcinkowski, J. and Mucowska, M., "Sustainable city logistics of last-mile and returns on the e-commerce market, various groups of stakeholders' perspective- Aims and scope of the project", ACC Journal, 28(2): 44-53, (2022).
  • [9] De Souza, E., Kerber, J., Bouzon, M. and Rodriguez, C., "Performance evaluation of green logistics: Paving the way towards circular economy", Cleaner Logistics and Supply Chain, 3: 100019, (2022).
  • [10] https://thedocs.worldbank.org/en/doc/908481507403754670-0330212017/original/AnnualReport2017WBG.pdf. Access date: 26.11.2022
  • [11] Hawks, K., "What is reverse logistics?", Reverse Logistics Magazine, Winter/Spring, (2006).
  • [12] Guarnieri, P., Cerqueira-Streit, J. and Batista, L., "Reverse logistics and the sectoral agreement of packaging industry in Brazil towards a transition to circular economy", Resources, Conservation and Recycling, 153: 104541, (2020).
  • [13] Roudbari, E., Ghomi, S., and Sajadieh, M., "Reverse logistics network design for product reuse, remanufacturing, recycling and refurbishing under uncertainty", Journal of Manufacturing Systems, 60: 473-486, (2021).
  • [14] Das, D., Kumar, R. and Rajak, M., "Designing a reverse logistics network for an e-commerce firm: A case study", Operations and Supply Chain Management, 1(13): 48-63, (2020).
  • [15] Asif.F., Bianchi, C., Rashid, A. and Nicolescu, C., "Performans analysis of closed-loop supply chain", Journal of Remanufacturing, 2(4): 1-21, (2012).
  • [16] Bhatia, M., Srivastava, R. and Jakhar, S., "What's critical for closed-loopes supply chain operations? - Finding from the Indian small and medium manufacturing enterprises", Journal of Cleaner Production, 372: 133791, (2022).
  • [17] Nanayakkara, P., Jayalath, M. and Thibbotuwawa, A., "A circular reverse logistics framework for handling e-commerce returns", Cleaner Logistics and Supply Chain, 5: 100080, (2022).
  • [18] Dutta, P., Mishra, A., Khandelwal, S. and Katthawala, I., "A multiobjective optimization model for sustainable reverse logistics in Indian e-commerce market", Journal of Cleaner Production, 249: 119348, (2020).
  • [19] https://www.statista.com/statistics/379046/worldwide-retail-e-commerce-sales/. Access date: 26.11.2022
  • [20] Zennaro, I., Finco, S., Calzavara, M. and Persona, A., "Implementing e-commerce from logistics perspective: Literature revies and methodological framework", Sustainability, 14: 911, (2022).
  • [21] https://www.business2community.com/infographics/e-commerce-product-return-statistics-trends-infographic-01505394. Access date: 26.11.2022
  • [22] https://www.salecycle.com/blog/featured/ecommerce-returns-2018-stats-trends/. Access date: 26.11.2022
  • [23] https://www.sbb.gov.tr/wp-content/uploads/2021/01/Perakende_E-Ticaretin_Yukselisi.pdf. Access date: 26.11.2022
  • [24] XiaoYan, Q., Yong, H. and Qinli, D., "Reverse logistics network design model based on e-commerce", International Journal of Organizational Analysis, 20(2): 251-261, (2012).
  • [25] Liu, D., "Network site optimization of reverse logistics for e-commerce based on generic algorithm", Neural Comput and Applic, 25: 67-71, (2014).
  • [26a] Guo, J., Liu, X. and Jo, J., "Dynamic joint construction and optimal operation strategy of multi-period reverse logistics network: A case study of Shanghai apparel e-commerce enterprises", J Intell Manufacturing, 28: 819-831, (2017).
  • [26b] Guo, J., Wang, X., Fan, S. and Gen, M., "Forward and reverse logistics network and route planning under the environment of low-carbon emissions: A case study of Shanghai fresh food e-commerce enterprises", Computers and Industrial Engineering, 106:351-360, (2017).
  • [27] Govindan, K., Nosrati-Abarghooee, S. and Nasiri, M.M., "Green reverse logistics network design for medical waste management: A circular economy transition through case approach", Journal of Environmental Management, 322: 115888, (2022).
  • [28] https://www.kalkinmakutuphanesi.gov.tr/assets/upload/dosyalar/7-ayakkabi-tekstil.pdf. Access date: 03.01.2023.
  • [29] https://www.salecycle.com/blog/featured/ecommerce-returns-2018-stats-trends/. Access date: 03.01.2023
  • [30] https://ellenmacarthurfoundation.org/topics/circular-economy-introduction/overview. Access date: 17.07.2023
  • [31] Meier, O., Gruchmann, T. and Ivanov, D., “Circular supply chain management with blockchain technology: A dynamic capabilities view”, Transportation Research Part E, 176: 103177, (2023).
  • [32] Lemke, J., Iwan, S. and Korczak, J., “Usability of the parcel lockers from the customer perspective-The research in Polish cities”, Transportation Research Procedia, 16: 272-287, (2016).
  • [33] Cano, J.A., Londono-Pineda, A. and Rodas, C., “Sustainable logistics for e-commerce: A literature review and bibliometric analysis”, Sustainability, 19(14): 12247, (2022).
There are 34 citations in total.

Details

Primary Language English
Subjects Engineering
Journal Section Industrial Engineering
Authors

Batuhan Kocaoğlu 0000-0002-6876-1362

Meliha Bulut 0000-0002-0893-9835

Early Pub Date November 12, 2023
Publication Date June 1, 2024
Published in Issue Year 2024

Cite

APA Kocaoğlu, B., & Bulut, M. (2024). Circular Supply Chain Network Design for E-commerce. Gazi University Journal of Science, 37(2), 840-852. https://doi.org/10.35378/gujs.1234548
AMA Kocaoğlu B, Bulut M. Circular Supply Chain Network Design for E-commerce. Gazi University Journal of Science. June 2024;37(2):840-852. doi:10.35378/gujs.1234548
Chicago Kocaoğlu, Batuhan, and Meliha Bulut. “Circular Supply Chain Network Design for E-Commerce”. Gazi University Journal of Science 37, no. 2 (June 2024): 840-52. https://doi.org/10.35378/gujs.1234548.
EndNote Kocaoğlu B, Bulut M (June 1, 2024) Circular Supply Chain Network Design for E-commerce. Gazi University Journal of Science 37 2 840–852.
IEEE B. Kocaoğlu and M. Bulut, “Circular Supply Chain Network Design for E-commerce”, Gazi University Journal of Science, vol. 37, no. 2, pp. 840–852, 2024, doi: 10.35378/gujs.1234548.
ISNAD Kocaoğlu, Batuhan - Bulut, Meliha. “Circular Supply Chain Network Design for E-Commerce”. Gazi University Journal of Science 37/2 (June 2024), 840-852. https://doi.org/10.35378/gujs.1234548.
JAMA Kocaoğlu B, Bulut M. Circular Supply Chain Network Design for E-commerce. Gazi University Journal of Science. 2024;37:840–852.
MLA Kocaoğlu, Batuhan and Meliha Bulut. “Circular Supply Chain Network Design for E-Commerce”. Gazi University Journal of Science, vol. 37, no. 2, 2024, pp. 840-52, doi:10.35378/gujs.1234548.
Vancouver Kocaoğlu B, Bulut M. Circular Supply Chain Network Design for E-commerce. Gazi University Journal of Science. 2024;37(2):840-52.