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Resources, Conservation and Recycling 97 (2015) 76–92

Contents lists available at ScienceDirect

Resources, Conservation and Recycling


journal homepage: www.elsevier.com/locate/resconrec

Review

A literature review and perspectives in reverse logistics


Saurabh Agrawal∗, Rajesh K. Singh, Qasim Murtaza
Mechanical, Production & Industrial Engineering Department, Delhi Technological University, Delhi 110042, India

a r t i c l e i n f o a b s t r a c t

Article history: In recent years, reverse logistics (RL) has become a field of importance for all organizations due to growing environmental
Received 4 November 2014 concerns, legislation, corporate social responsibility and sustainable competitiveness. RL refers to the sequence of activities
Received in revised form 18 February 2015 required to collect the used product from the customers for the purpose of either reuse or repair or re-manufacture or recycle
Accepted 18 February 2015
or dispose of it. Perusal of the literature shows that research in the field of RL is in evolving phase and issues pertaining to
adoption and implementation, fore- casting product returns, outsourcing, RL networks from secondary market perspective,
Keywords:
and disposition decisions have not been reviewed extensively. This study attempts to fill the existing gap through litera- ture
Reverse logistics
review on these issues, and outline the future directions for research based on research gap analysis. Total 242 published
Forecasting product returns
Reverse logistics network
articles were selected, categorized, analyzed, and gaps in literature were identified to suggest for future research
Secondary market Disposition opportunities. The review may be useful for academicians, researchers and practitioners for better understanding of RL and
Outsourcing guidance for future research.
© 2015 Elsevier B.V. All rights reserved.

Contents

1. Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . 77
2. RL processes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . 77
2.1. Product acquisition/gate keeping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
78
2.2. Collection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . 78
2.3. Inspection and sorting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . 78
2.4. Disposition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . 78
3. Research methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 78
3.1. Material collection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 79
3.2. Descriptive analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 79
3.3. Category selection. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . 79
3.4. Material evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 79
4. Detailed analyses of the literature. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
81
4.1. Adoption and implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
81
4.2. Forecasting product returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
81
4.3. Outsourcing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . 81
4.4. RL network from secondary market perspective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
4.4.1. Recycling network. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 84
4.4.2. Reuse network. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 84
4.4.3. Remanufacturing networks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
84
4.4.4. Repairing network. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . 85
4.4.5. Secondary market network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
86
4.5. Disposition decisions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 86
5. Discussion and research gap analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
88

∗ Corresponding author. Tel.: +91 9911924907.


E-mail addresses: agrawals.iit@gmail.com (S. Agrawal), rks.dce@yahoo.com (R.K. Singh), qasimmurtaza@gmail.com (Q. Murtaza).

http://dx.doi.org/10.1016/j.resconrec.2015.02.009
0921-3449/© 2015 Elsevier B.V. All rights reserved.
77 S. Agrawal
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76–92 77

5.1. Adoption and implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


. 88
5.2. Forecasting product returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. 88
5.3. Outsourcing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . 88
5.4. RL networks from secondary market perspective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
5.5. Disposition decisions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 89
6. Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . 89
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . 89

1. Introduction analyze current practices, critical issues, and managerial tech- niques.
Fleischmann et al. (2000), Akc¸ alı et al. (2009), Chanintrakul et al. (2009),
The research on RL has evolved over the years and authors have defined Sheriff et al. (2012) reviewed the literature on RL network design issues.
RL in different ways. Earliest definition of RL was found to be given by These reviews provide insight to the RL previous research on various
Murphy and Poist (1989) mentioning about the reverse flow of goods. Later issues. However, it was observed that issues like adoption and
on Carter and Ellram (1998) introduced the term “environment” in the implementation, forecasting product returns, outsourcing, RL networks from
definition of RL. Rogers and Tibben- Lembke (1999) stressed on the secondary market per- spectives, and disposition decisions are not covered in
purpose of the RL and established the most widely accepted definition as “RL depth. For example, Govindan et al. (2015) reviewed 382 articles covering
is the process of planning, implementing, and controlling the efficient, cost whole area of RL providing in depth insight from different perspec- tives but
effective flow of raw materials, in process inventory, finished goods and related reviewed very few articles on forecasting product returns and outsourcing.
information from the point of consumption to the point of origin for the Adoption and implementation as well as disposi- tion decisions are not dealt.
purpose of recapturing value or proper disposal”. Stock (1998), Dowlatshahi Pokharel and Mutha (2009) reviewed
(2000) and Srivastava (2008) have also defined RL from different perspectives. 164 articles on important RL features such as product acquisition, pricing,
Definition of RL has been changing over time and widening its scope with collection of used products, RL network structure vis-à-vis the integration of
the interest of researchers. manufacturing, and remanufacturing facilities of location of facilities for
Researchers and practitioners have consistently given attention to the inspection and consolidation activity. How- ever, select issues for the proposed
forward supply chains and ignored the reverse flow of sup- ply chains study are not reviewed in this article also. Krapp et al. (2013a) observed that
(Bernon and Cullen, 2007). The scope for the forward supply chain has there are very few reviews focusing on the issue of forecasting product returns.
been extended to include the reverse flow of prod- ucts from the point of Rogers et al. (2012) and Hall et al. (2013) stated that disposition is one of the
consumption back to the source (Rogers and Tibben-Lembke, 2001). RL has major RL issues and need more attention. Rogers et al. (2012) also stated that
recently received growing impor- tance and more firms are adopting it as a there is an acute need for exploring the secondary market networks given the
strategic tool for economic benefits and corporate social image (Kannan et al., size and profitability potential of this market. De Brito and Dekker (2002),
2012a). Firms have also realized that a better understanding of product returns Linton et al. (2007), Meade et al. (2007), Rubio et al. (2008), Lambert
and efficient RL can provide a competitive advantage (Stock and Mulki, 2009). et al. (2011) reviewed published literature on various aspects of RL but select
Although many industries have realized that RL is a necessity for sustainable issues are either under-represented or not reviewed in their articles. The pro-
competitiveness, there is a lack of agree- ment on timing of adaptation and posed article aims at filling these gaps in literature by reviewing these issues
implementation of RL system (Richey et al., 2004). RL has been beneficial to and finding research gaps for identifying future scope of research.
some of the orga- nizations like General Motors, Canon, Dell, and Hewlett- This study makes an attempt to present a comprehensive review of the
Packard. Jayaraman and Luo (2007) have mentioned that Kodak is able to published literature on these RL issues. Subsequently, study analyzed the
reuse up to eighty percent of the used camera’s parts. Wu and Cheng research gaps in the literature to facilitate further study, and research
(2006) investigated the possible advantages of RL imple- mentation in the directions. Remaining part of the study is organized as follows: Section 2
publishing industry. Kumar and Craig (2007) studied computer assembly defines the basic RL processes. Research methodology is presented in
line of Dell. Lau and Wang (2009) studied the electronics industry in China Section 3. In Section 4, detailed discussions on specified classifications
and explored the prob- lems encountered in RL implementation. Subramanian are undertaken. Section 5 discusses and critically analyzes research gaps, and
et al. (2014) worked on end of life products in the Chinese manufacturing sec- the study is summarized in Section 6 by offering conclusions along with its
tor. Jayaraman et al. (2003) discussed RL systems for recycling and reuse of limitations.
beverage containers. Studies on reverse logistics imple- mentation have
been done in many sectors such as carpet industry by Biehl et al. (2007), retail 2. RL processes
industry by Bernon et al. (2011), bot- tling sector by González-Torre et al.
(2004), paper industry by Ravi and Shankar (2006), packaging firms by RL processes have been explained by many authors in different
González-Torre and Adenso-Diaz (2006), cell phone industry by Rathore et al. perspectives. Based on the work carried out by Rogers and Tibben- Lembke
(2011), pharmaceuticals industry by Narayana et al. (2014), and battery (1999), Fleischmann et al. (2000), Fleischmann (2001) as well as Guide and
recycling by Wang et al. (2014). Wassenhove (2003), different key processes of RL have been identified and are
Literatures on RL have been reviewed by many researchers in the past. shown in Fig. 1. The used or returned products are collected after their
Fleischmann et al. (1997) studied RL from the perspectives of distribution acquisition and are inspected for sorting into the different categories. The
planning, inventory management and production planning. Carter and Ellram next step is to dispose them for repair, remanufacturing, recycling, reuse or
(1998) focused on the environmental aspects of transportation, packaging and final disposal depending on the decision taken to either recapture value or dis-
purchasing. Dowlatshahi (2000) developed a theory of RL successful pose of it. The key processes are identified as product acquisition, collection,
implementation considering various strategic and operational factors. inspection/sorting, and disposition are described in the following section.
Prahinski and Kocabasoglu (2006) identified ten research propositions to
78 S. Agrawal
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/ Resources,
Conservation
Conservation
and Recycling
and Recycling
97 (2015)
97 (2015)
76–92
76–92 78

Fig. 1. Basic flow of forward and RL processes.


2.1. Product acquisition/gate keeping of the constituting elements need to be evaluated. Products and
components are sorted out based on this evaluation (De Brito and
Product acquisition is the process of acquisition of used prod- ucts, Dekker, 2002). In a study, Zikopoulos and Tagaras (2008) found
components or materials from the end users for further processing. that sorting before disassembly and remanufacturing depends on the
Since product returns are uncertain in terms of time, quantity and transportation, disposal and disassembly cost, and quality of returned
quality, their acquisition is important for the suc- cess of RL product. Loomba and Nakashima (2012) examined the role of
(Fleischmann et al., 1997). According to Guide and Wassenhove sorting used products before disassembly by using Markov decision
(2003), product acquisition is the first step and is critical process process. Some of the previous research examples include distinguishing
for establishing the profitable RL. Gate keeping rep- resents the main repairable and recyclable subassemblies of copiers (Krikke et al.,
entrance of RL. It is a set of practices performed usually by retailers to 1999a), inspection of sieved sand for pollution (Barros et al., 1998), and
identify the products which are allowed into the system or given back to separation of non-relevant waste paper (Pati et al.,
the user after resolving issues at their end. For example, if consumer 2008). Galbreth and Blackburn (2006) derived optimal acquisition and
returns the product to retailer then retailer decides whether product sorting policies with used product condition variability and uncertain
must be sent for further process- ing (Acquisition) or given back to demand.
consumer. This act of decision making is known as “Gate keeping”.

2.4. Disposition
2.2. Collection
Once the products are inspected, next step is to take disposi- tion
Products after acquisition are collected and delivered to the
decision for further processing. Thierry et al. (1995) illustrated three
facilities for inspection, sorting, and disposition. Collection refers to the
disposition alternatives as product reuse, product recovery, and waste
activity in which a firm gains the possession of the products
management. Krikke et al. (2003), and Tibben-Lembke and Rogers
(Fleischmann et al., 2003). Kumar and Putnam (2008) discussed
(2002) further modified these alternatives as reuse, product
three collection methods as manufacturers directly collect from
upgrade, material recovery, and waste management. Norek (2003)
customers, manufacturers collect via retailers or manufactures
reported that firms mostly have five recovery options including sell
collect through third party logistics. Webster and Mitra (2007) con-
as new; repair or repackage and resell as new; repair or repackage
sidered two alternative take back methods for collection which are
and resell as used; resell at a lower value to a sal- vage house;
distinguished by the “degree of control” on product returns. First method
and sell by the weight to a salvage house. There are different
is collective take back in which the manufacturer has no control over
combinations which have been discussed for disposition alternatives.
returns while second method is individual collection which gives
Each study emphasized slightly different alternatives and definitions.
complete control to the manufacturer. Choice of collec- tion method
Five common disposition alternatives discussed by authors are reuse,
depends on the cost structure and collection quantity decisions (Atasu
repair, remanufacturing, recycling, and disposal (Thierry et al., 1995; De
et al., 2013). Decision of collection centers and related parameters
Brito and Dekker, 2002; Fleischmann et al.,
must be involved considerably in designing RL for its operational
1997; Mutha and Pokharel, 2009).
efficiency (Pochampally and Gupta, 2004).

2.3. Inspection and sorting 3. Research methodology

Product returns may be commercial returns, service returns, dis- A literature review seems to be a valid approach for reviewing
tribution returns or end of life returns. Rogers and Tibben-Lembke thoroughly and structuring a research area (Easterby-Smith et al.,
(1999) reported that the customer may return the products because of 2002). Literature review helps in identifying the conceptual con- tent of
known or unknown reasons, and the condition of returned prod- ucts the research area (Meredith, 1993) and guides toward the theory
may differ greatly. So a separate inspection of each item is development. In order to systematically review the litera- ture and to
required for sorting the products. Its overall appearance and state clarify research methodology for the article, four steps such as material
collection, descriptive analysis, category selection,
79 S. Agrawal
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et al.et/ al.
Resources,
/ Resources,
Conservation
Conservation
and Recycling
and Recycling
97 (2015)
97 (2015)
76–92
76–92 79

and material evaluation given by Mayring (2008) are described in


28
following section.
27

3.1. Material collection 23

Material collection methodology and unit of analysis is the first step


20
of the literature review process. The unit of analysis has been defined 19
as a single research article/book/report. The study was conducted
in two stages. In first stage, pair of key words “reverse logistics” and 16
“literature review” was used in title, abstract, and keywords to carry 15
15
out review articles search. These keywords were used in Google- 14
scholar search engine (www.scholar.google.com) and in Scopus
(www.scopus.com) with options of searching for articles in English
language excluding articles in other languages, and sorted by
relevance. After reading and analyzing the literature review articles
7 7 8 8
(discussed in Section 1), further literature search were inductively
6 6
attributed to the categorization of RL i.e. adoption and implementation, 6

forecasting product returns, outsourcing, disposition decisions, and


3
RL networks from secondary market perspective. The terms 2 2 2 2 2
“Forecasting product returns”, “Imple- mentation”, “Disposition”, and 1 1 2

“Outsourcing” along with the key term “reverse logistics” were used
for searching articles with options as in first stage. The key word

1986
1989
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
“RL network” was jointly Fig. 2. Annual distribution of publications across the period of the study.
used with “secondary market” for literature search. Articles on RL
networks were searched only in contest of secondary mar- ket
because the intent was to explore secondary market and its
3.3. Category selection
consideration in RL networks design. Same searches were
repeated for the year 2014 and 2015 to ensure the recent publi- cations
Categories of the study and framework for the study are shown in
inclusion in the review. The articles belong to the leading publishers
Fig. 3. As discussed above in Section 1, the literatures on RL are
including Elsevier (www.sciencedirect.com), Emerald
classified into five categories. These five categories are (1)
(www.emeraldinsight.com), Springer (www.springerlink.com), Taylor
Adoption and implementation; (2) Forecasting product returns; (3)
and Francis (www.tandf.co.uk/journals/), Wiley
Outsourcing; (4) RL network from secondary market perspective; (5)
(www.wiley.com), and Informs (http://journals.informs.org/). Total
Disposition decisions. This classification and frame work for the study is
503 articles were collected and all collected articles were
shown in Fig. 3.
considered for first quick check of content and relevancy for the study.
Distribution of research articles for five categories is shown in Fig. 4.
Only those articles which were focused on the above men- tioned
RL Networks from secondary market perspective has max- imum
issues were taken into consideration. Seventeen articles from
percentage (40%) of publications while most of the other
conferences, research reports, and books were also included because
categories comparatively have less percentage of articles which
of their contribution and importance for the study of RL. Finally, total
indicates the future scope and need of exploration of these areas.
242 articles were selected, reviewed and examined in detail. The
number of articles analyzed for the review appears to be adequate
because of focus on specific issues. It is consistent with the number of 3.4. Material evaluation
articles analyzed in recent literature reviews in the area of RL.
Measures were taken to make sure a high level of inter-rater reli-
3.2. Descriptive analysis ability. Rigor in validity is achieved by validation tests performed by
three researchers using the deductive and inductive approaches
To comprehend the multi perspective view of the concepts, simultaneously. Preliminary measures involved classification of
articles were sorted out from more than fifty journals. Table 1 articles by the researchers, and then comparing these articles to
illustrates the articles published by various journals. From Table 1, it is ensure consensus. To increase the reliability of the research, data-
observed that most of the articles have been published in reputed banks, and journals as well as the individual articles, materials were
journals such as Resource, Conservation and Recycling, Omega, cross checked by three researchers with the help of spread sheets and
International Journal of Physical Distribution and Logistics intense discussion among themselves. In order to examine the reliability
Management, European Journal of Operational Research, Interna- of the study, inter-coder reliability was assessed using Krippendorf’s
tional Journal of Production Research, and Journal of Production alpha for measuring the quality of the review because it is considered
Economics. “the most general agreement measure with appro- priate reliability
Annual distribution of number of articles published from year interpretations” (Krippendorff, 2004). Neuendorf (2002) reviewed
1986 to 2015 is shown in Fig. 2. Most of the articles were selected from various opinions of several methodologists and concluded that the
recent publications. 63 articles out of total 242 selected arti- cles were values of alpha, 0.80 or greater are consid- ered acceptable. The
published before the year 2006. Rests of the articles (179) were study was carried out by the authors and two independent coders, after
selected from the year 2006 and onwards. Highest number of being trained. The values of alpha were calculated by using SPSS 22.0
articles (28) has been published in year 2012. It is also clear that with the help of macros developed by Hayes and Krippendorff (2007).
numbers of articles have increased considerably in last few years The resulting inter-coder reliabil- ity for research categories and
because of growing interest of researchers in this area. research gap analysis were found to be ˛rc = 0.91 and ˛rg = 0.86
respectively, which are well above 0.8. It shows consistency and
reliability of this study.
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Table 1
Number of articles published by main journals.

S. No. Articles published by Journals Numbers of articles

1 Omega 16
2 International Journal of Physical Distribution and Logistics Management 14
3 International Journal of Production Research 14
4 Resources, Conservation and Recycling 12
5 European Journal of Operational Research 11
6 International Journal of Production Economics 9
7 Transportation Research 8
8 Computers and Industrial Engineering 7
9 Journal of Business Logistics 7
10 The International Journal of Logistics Management 7
11 International Journal of Advanced Manufacturing Technology 6
12 Journal of Cleaner Production 6
13 Production and Operations Management 6
14 Supply Chain Management: An International Journal, International Journal of Logistics Systems and Management 5 each
15 Applied Mathematical Modelling, Computers and Operations Research, Expert Systems with Applications, Interfaces, Journal of 4 Each
Operations Management
16 IIE Transactions, OR Spectrum, Decision Sciences 3 Each
17 Applied Mechanics and Materials, California Management Review, International Journal of Operation and Production Management, Journal 2 Each
of Advances in Management Research, Journal of the Operational Research Society, International Journal of Business Performance and
Supply Chain Modelling, Management Research News
18 Academy of Management Executive, Academy of Management Perspectives, Advanced Materials Research, Benchmarking: An 1 Each
International Journal, British Journal of Management, Business Horizons, Communication Methods and Measures, Computers and Chemical
Engineering, Computers and Mathematics with Applications, DC Velocity, Decision Support System, Environmental Science and
Technology, European Journal of Purchasing and Supply Management, Foresight, Fuzzy Sets and Systems, Human Communication
Research, Industrial Marketing Management, Information Management, Information, Knowledge, System Management, International
Business Review, International Journal of Applied Mathematics and Computer Science, International Journal of Environmental Science and
Technology, International Journal of Logistics, International Journal of Logistics: Research and Applications, International Journal of
Management and Information Systems, International Journal of Modeling and Optimization, International Journal of Operational Research,
International Journal of Procurement Management, International Journal of Sustainable Development and Ecology, International Journal of
Sustainable Engineering, International Journal of Value Chain management, Journal of Enterprise Information Management, Journal of
Fashion Marketing and Management, Journal of Industrial Ecology, Journal of Manufacturing Systems, Journal of Manufacturing
Technology Management, Journal of Material Cycles Waste Management, Journal of Transportation Systems Engineering and Information
Technology, Knowledge-Based Systems, Management Research – An Introduction, Management Science, Networks, Operations
Management Research, Operations Research, Production Planning and Control, Robotics and Computer-Integrated manufacturing,
Technological Forecasting and Social
Change, Waste Management and Research, World Journal of Social Technology and Sustainability Development
21 Conferences/Books/Reports 17
Total number 242

Fig. 3. Frame work for the study.


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country. No study was found in literature showing comparative study of


the barriers.

4.2. Forecasting product returns

Planning for RL is more difficult than forward logistics because of more


uncertainty in terms of quantity, time and quality of returned product (Flapper,
1996). Forecasting for products available for col- lection, transportation,
remanufacturing/recycling is important to achieve the optimum level of
performance (Tibben-Lembke and Rogers, 2002). According to Xiaofeng and
Tijun (2009), forecasting product returns is important for designing the RL
network, layout planning of the recovery facilities as well as the planning and
con- trol of recovery processes. Toktay et al. (2003) stated that there are few
documented business examples of forecasting product returns. Krapp et al.
(2013a) also observed that there are very few reviews focusing on the issue
of forecasting product returns. The litera- ture has been reviewed
comprehensively and some of the previous studies on forecasting product
returns are summarized in Table 4. The forecasting methods include both
Fig. 4. Distribution of research papers for different categories. quantitative and qualitative methods as mentioned in the table. The product
return is supposed to be function of factors varying from sector to sector and
4. Detailed analyses of the literature type of disposition of returned product. However, it is difficult to analyze the
sufficiency of these factors for forecasting product returns from past research.
The selected articles of the literature review are discussed and analyzed in
this section to construct a holistic view of the recent and state-of-the-art studies 4.3. Outsourcing
in RL. The results will clarify the current gaps and future directions for
research. Outsourcing can be defined as acquiring services from external service
providers (Grover et al., 1994). Manufacturers may adopt RL by choice or by
4.1. Adoption and implementation force but they have to decide whether performing the functions themselves and
outsourcing to a third party (Ferguson and Toktay, 2006; Martin et al.,
Adoption and implementation of RL decisions involve several factors 2010). Manufactures have three choices including do nothing, develop own
which are useful in decision making and RL effectiveness. A critical analysis RL system or find a third party logistics provider and partner with them (Meade
of the factors affecting RL can provide valuable information for RL and Sarkis,
implementation (Ravi et al., 2005). Rogers and Tibben-Lembke (1999) 2002). Daugherty and Droge (1997) observed that outsourcing deci- sions are
suggested that there are number of factors affecting RL practices. The based on a variety of qualitative as well as quantitative factors and the
presence or absence of these factors can become drivers or barriers to organizational structure has a significant effect on the outsourcing decision of
RL implementation. The study categorized the factors into drivers and the RL functions completely or partly.
barriers and is shown in Tables 2 and 3, respectively. In past, Authors have suggested number of reasons and scenar- ios in which
Firms may adopt RL by choice because of inherent economic or outsourcing RL functions may be considered. Insigna and Werle (2000)
competitive advantages or by force because of legislation or envi- ronmental suggested that the firms should outsource activ- ities for which internal
reasons. Knowing the drivers influencing the RL may be helpful in RL capability is weak and the potential for gaining competitive advantage is
implementation. De Brito and Dekker (2002) catego- rized two types of low. Boyson et al. (1999) men- tioned that the decision to outsource is
drivers, internal and external. Carter and Ellram (1998) identified internal and driven by profit growth and increased focus on core competencies. Arnold
external factors to examine whether a firm is reactive, proactive, or value- (2000) distin- guishes among core activities, core-close activities, core-
seeking in RL implementa- tion. Fleischmann et al. (1997) listed the distinct activities, and disposable activities. The core activities have the
economics, marketing, legislation as main drivers of RL. Dowlatshahi (2010) highest degree of contribution to the competitiveness while dispos- able
developed a framework for an optimal design and RL implementation consider- activities have minimal contribution. The outsourcing strategy changes with
ing strategic and operational factors based on cost-benefit analysis. There are the degree of contribution to the competitiveness. Wu et al. (2005) stated
number of drivers which have been discussed in the lit- erature. The drivers that if RL activities are not the part of its core functions, RL activities might
were identified in a given region or country for a particular sector and varies be outsourced. Serrato et al. (2007) found that the industry with high return
across them. These drivers are sum- marized in Table 2. It is evident from variability and a short product life cycle must outsource RL activities
Table 2 that these drivers are different depending on the sector and country in because of reduced economic feasibility of maintaining a firm’s own RL.
which the study was carried out. Ko and Evans (2007) observed that specialized infrastructure need- ing
Carter and Ellram (1998) asserted customer preferences, regula- tions, special information systems for tracking and capturing data, dedicated
resource constraint, and lack of stakeholder commitment as major barriers of equipment for the processing of returns, and specialist trained nonstandard
RL implementation. Rogers and Tibben-Lembke (1999) identified the manufacturing processes are major reasons for outsourcing. Pagell et al.
attitude of top management and company policies as two major barriers. (2007) predicted that manufacturers may initially adopt low cost strategies but
Ravi and Shankar (2004), in a study of automobile sector in India and added they will consider other strategies like in-house disassembly to protect
more barriers like problems with product quality, resistance to change to RL, intellectual prop- erty at a later stage. Kannan et al. (2012b) summarized the
lack of appropri- ate performance metrics, and lack of training and education. main reasons for outsourcing including sophisticated information sys- tem
There are number of barriers which have been discussed in the literature. Major capabilities and state-of-the-art transportation and material
barriers for RL, identified in different studies are summarized in Table 3. These
barriers vary from sector to sector and country to
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Table 2

Drivers of RL implementation.

Authors Factors Sector Country

Fleischmann et al. (1997) Economic factor, Marketing, Legislation General Autry et al.
(2001) Sales volume, Firm size, Customers’ satisfaction, Disposition Electronics De Brito and Dekker
(2002) Economic factor, Legislation, Extended producer’s responsibility, Corporate
citizenship
Ravi et al. (2005) Economic factors, Environment and green issues, Corporate citizenship End of life computer India
Lau and Wang (2009) Promotion of corporate image, Fulfillment of obligation for environment protection, Electronics China
Improvement of customer service
Janes et al. (2010) Top management awareness, Strategic partnerships, Performance visibility, Strategic focus in Electronics USA
avoiding returns, Reclaiming value from returns, Put products swiftly back in the market
Rahman and Subramanian (2012) Legislation, customers, strategic cost, environmental concerns, volume and quality, incentives,
resources, and integration and coordination EOL-Computers Australia
Chiou et al. (2012) Economic needs, Environmental needs, Social needs, Recycled volumes,
Recycling costs, Increase of sales volume for new product Electronics Taiwan
Tyagi et al. (2012) Facilities, Handling, Ease of access, Information Hospitals Canada Jindal and Sangwan
(2013) Economical, Environmental, and Social drivers Indian Industry India Kapetanopoulou and Tagaras (2011)
Legislation, Profitability, Green image, Customer service, Competition Manuf. Greek Industry Mittal and Sangwan (2014) Internal, Policy and
Economic drivers Manuf. India
Kannan et al. (2012b) Extended producer, responsibility, codes of conduct, and resource scarcity EOL Tire Manuf. India

handling equipment and warehousing facilities of third party logis- tics conceptual framework for retail sector outsourcing options by considering
providers. Huscroft et al. (2012) also emphasized on use of information trust, power, impact on organizational performance, quality costing,
technology for reverse logistics cost effectiveness. These studies explain the avoidance techniques, and ultimate organizational performance in terms of
reasons and scenario in which a RL func- tions may be considered for both customer satisfaction and bottom line performance. The framework
outsourcing. Studies are mainly focused on outsourcing whole of RL functions. considers the qualitative fac- tors comprehensively for outsourcing in
However, no comprehensive study was found related to process or part of RL retail sector. Mafakheri and Nasiri (2013) addressed the issue of revenue
functions outsourc- ing. For example, inspection, sorting, and disposition may sharing in RL to formulate the decision problems of coordinating parties.
also be outsourced which may help a company to directly get the products They emphasized on horizontal collaboration among firms sharing RL
either for recycling or remanufacturing as the case may be. activities/work and contributions. Apart from the number of stud- ies discussed
Once a firm considers for outsourcing some of its RL functions, there are above, there are number of articles focusing on selection of third party RL
methodologies and models developed by the researchers to take outsourcing service provider (Meade and Sarkis, 2002; Bottani and Rizzi, 2006; Saen, 2009;
decisions. Krumwiede and Sheu (2002) devel- oped a decision making Efendigil et al., 2008; Kannan et al., 2009; Cheng and Lee, 2010; Ravi and
framework for outsourcing transportation services. They conducted field Shankar, 2012; Kannan and Murugesan, 2011; Divahar and Sudhahar, 2012;
study for a company to take out- sourcing decision through evaluation of Govindan et al.,
market, customers and competitors. Ordoobadi (2009) developed a multi 2013; Aguezzoul, 2014; Senthil et al., 2014; Kumar et al., 2014a,b). A lot of
phased deci- sion model for strategic and economic analysis of benefits of outsourcing RL functions and methodologies have been
outsourcing recycling or remanufacturing. Bernon et al. (2011) proposed a discussed in the literature. However, benefits depend on the type of
business and products handled by the companies.

Table 3
Barriers of RL implementation.

Authors Factors Sector Country

Carter and Ellram (1998) Customer preferences, Regulation, Resource constraint, Lack of stakeholder commitment General
Rogers and Tibben-Lembke (1999) Attitude of top management, Company policies General
Ravi and Shankar (2004) Lack of awareness, Lack of commitment, Lack of strategic planning, Quality problems, Automobile India
Financial constraints
Lau and Wang (2009) Lack of laws and legislation, Economic policies, Underdevelopment of recycling Electronics China
technology, Lack of publicity and knowledge of reverse logistics
Janes et al. (2010) Lack of clear return policies, Little recognition of strategic value, Poor performance Electronics USA
measurement system, Inadequate IT support, Limited forecasting and planning, Insufficient
tax know-how
Sharma et al. (2011) Lack of awareness about reverse logistics, Management inattention, Financial constraints, Legal Industry India
issues
Rahman and Subramanian (2012) Lack of personnel resources, Management’s low commitment, Lack of initial capital, Lack of Manufacturing China
enforceable laws, Regulations and directives, Lack of coordination
Chiou et al. (2012) Environmental regulations and directives, Consumer’s environmental awareness,
Pressures with stakeholders Electronics Taiwan
González-Torre et al. (2010) Reluctance on the part of government, Customer, and social actors, Lack of know-how, Lack
of top management commitment, Lack of information Systems, High cost in financial Automotive Spain
and human resources
Mittal and Sangwan (2013) Legislation, Public pressure, Competitiveness, Customer demand, Top management
commitment, Technology, Organizational resources Indian Industry India
Abdulrahman et al. (2014) Lack of reverse logistics experts, Low commitment, Lack of initial capital, Funds for return
monitoring systems, Lack of enforceable laws, Government supportive economic policies, Manufacturing Industry China
Lack of systems for return monitoring
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Table 2

Table 4
Forecasting models for product returns.

Authors Method/model Factors for forecasting Sector Disposition Country

Goh and Varaprasad (1986) Statistical Trip-page, Trip Containers Reuse


Methodology duration, Loss rate,
Expected useful life
Kelle and Silver (1989) Simulation Model Quantitative Reusable Containers Reuse USA
Toktay et al. (2000) Discrete-Time Quantitative Kodak Camrea Reuse
Distributed-Lag Model
Marx-Gomez et al. (2002) A neurofuzzy system Quantitative Photo copiers Remanuf., Recycling
Srivastava and Srivastava (2006) Decomposition methods and Product ownership data, Electronic General India
heuristics Life cycle of products,
Sales, Forecasted demand,
Environmental policy,
Green Indexes Number of
devices in use, Current
Peralta and Fontanos (2006) Mathematical end-of-life, Serviceable Electronic Recycling Philipines
equations years of the product,
Disposal behavior of
consumers
Product life, Social and
Sales factor, Marketing and
Hanafi et al. (2007) Petri Net Forecasting advertising budget, Mobile phone General Australia
Model Population density, Age
Liu and Fang (2007) Transfer Function Quantitative – – –
Noise model
Xiaofeng and Tijun (2009) Wave function Quantitative Electronic General China
Efendigil et al. (2009) Artificial intelligence Demand with Durable consumer Closed loop supply Turkey
approaches incomplete goods chain
information
Chen and He (2010) Simplex gray forecast model Quantitative House hold appliances General China
with time series model
Yu et al. (2010) Logistic and material
flow analysis Quantitative Personal Computers Recycling Asia
Shih et al. (2012) Analytic Network Consumer behavior, Printers Recycling Taiwan
Process Marketing mix
Potdar and Rogers (2012) Data Envelopment Consumer behavior Electronic General USA
Analysis
Benedito and Corominas (2013) Markov Decision Model Product demand, Product life – Remanuf., recycling –
cycle, Return rate of end
of life
Clottey et al. (2012) A generalized approach Quantitative – Remanuf. –
Krapp et al. (2013a) Bayesian estimation Quantitative – Closed loop supply
techniques chain
Krapp et al. (2013b) A generic framework Quantitative Electronic Closed-loop supply chain
Agrawal et al. (2014) Graphical Evaluation and Quantitative E-waste Recycling
Review Technique
Temur et al. (2014) Fuzzy Expert System Quantitative General Closed loop supply chain
Kumar et al. (2014a,b) ANFIS Quantitative Closed loop supply
chain

Outsourcing RL to third party may impact the business of a com- pany because a virtual supply chain and manages all the work through IT and
of the return information to the third party. No study was found in the literature communications tool.
analyzing the impact of outsourcing RL functions.
Fourth party logistics is also one of options of outsourcing. Its market grew 4.4. RL network from secondary market perspective
considerably with the use of information technology (Win, 2008). It functions
as a control tower by taking respon- sibility of all the users’ outsourced Network design is one of the important strategic issues which may have
operations and serves as a single interface between the client and long term impact on the performance of RL. Strate- gic decisions for
multiple logistic service providers (Buyukozkan et al., 2009). They provide designing RL include number of facilities in the network, their location and
administrative services while other operators perform the physical movement region to be covered, and their capac- ity or size (De Brito and Dekker, 2002).
of goods (Selviaridis and Spring, 2007). Mukhopadhyay and Setaputra (2006) RL network designs have been studied for different business scenario through
used the fourth party logistics provider as RL integrator and used it as a various mod- eling techniques. One scenario is that when secondary markets
return service provider. Hingley et al. (2011) investigated the are also considered while designing the RL network. This study was done
collaboration and implementation through an exploratory study of retailers, from the perspective of secondary market. The intent was to explore
suppliers, and fourth party logistics service providers. In fact, fourth party opportunities for introducing and considering secondary market in RL network
service providers work in design. All four types of RL network (repair- ing, remanufacturing, recycling,
and direct reuse) and secondary
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market are reviewed and discussed in following section. The char- acteristics categories of products. Kroon and Vrijens (1995) reported a case study for
and features are illustrated in research gap analysis. reusable transportation packages, considering a single level decentralized
structure with timing of returns as an impor- tant element of uncertainty to
4.4.1. Recycling network determine the number of containers, the number of container depots, and
Recycling network is generally concerned with the material recovery their locations. The article focused on designing the RL system by using
from rather low value products (Blackburn et al., 2004). In many cases, mixed integer lin- ear programming for selecting best alternatives. Mollenkopf
investment costs are high due to advanced techno- logical equipments et al. (2005) proposed a cost model to evaluate the combined impact of
requirement for recycling. Low recovery value and high investments require logistics and packaging costs on the reuse of containers. They pointed out that
higher processing volume to make it economically viable. That’s the reason most of the models consider logistics cost and ignoring packaging costs,
that a centralized, open loop network structure involving a small number of may be substantial in some of the cases may result in reduced purchase cost.
levels is preferred. Also, these networks tend to be highly vulnerable to the González-Torre et al. (2004) considered joint implementation of environmental
uncertainty concerning the supply volume (Fleischmann et al., 2000). practices in col- laboration with suppliers and customers, and analyzed the
Barros et al. (1998) reported a case study for the recycling of sand existing differences in the relations between bottling/packaging firms and their
coming from construction waste for multi-level capac- itated warehouse suppliers. Silva et al. (2013) developed a returnable packaging model to
location problem. The model determined the optimal number, capacities, minimize waste generation and environmental impacts which resulted in 18%
and locations of the depots and clean- ing facilities. Louwers et al. (1999) less material consumption than the dis- posable packaging model thus
considered the design of a recycling network for carpet waste and reducing costs. Carrasco-Gallego et al. (2013), in a review of case studies
proposed a continu- ous location model that used a linear approximation. discussed the reuse net- work studies including returnable glass bottles by Del
Pati et al. (2008) formulated a mixed integer goal programming model Castillo and Cochran (1996), reusable wheelchairs by Rudi et al. (2000), postal
for paper recycling logistics system and studied the inter-relationship between maintainers by Duhaime et al. (2001), chemical railcars by Young et al. (2002),
multiple objectives with changing priorities of recycled paper distribution and Breen’s (2006) work on variety of items like pal- lets, tote boxes, trays,
network. Kara and Onut (2010) proposed a stochastic programming model kegs, trolleys, and bins. They also find that the literature on reuse networks is
for paper industry to determine a long term strategy including optimal staggered and scarce. Atasu et al. (2009) reviewed analytical research on the
facility locations and opti- mal flow amounts for large scale RL network business economics of product reuse from the industrial practice perspective.
design problem under uncertainty. They considered optimal recycling and Park (2014) studied the impact of various factors in technical, economic,
collection cen- ter locations and optimal flow amounts between the nodes regula- tory, and behavioral perspective for industrial waste reuse in Unites
in a multi-facility environment. Zeballos et al. (2012) developed a sce- nario States. Literature on reuse network along with key remarks is sum- marized in
based model simultaneously considering planning and design decisions under Table 5b. Reuse network models include the models based on cost
uncertainty in terms of quantity and quality of the flow of products for evaluation, and operational effectiveness. The solu- tion methodologies include
Portuguese glass manufacturing company. Qiang et al. (2013) investigated a mathematical, stochastic, simulation, and MCDM. The models developed
network model with decentral- ized decision-makers consisting of raw are focused on some prod- ucts/items only. Carrasco-Gallego et al. (2012)
material suppliers, retail outlets, and the manufacturers who collect the also reported that no article was found considering different classes of reusable
recycled product directly from the demand market. They discussed the items simultaneously.
effects of competition, investment, yield and conversion rates on equilibrium
quantity transactions and prices. Schweiger and Sahamie (2013) 4.4.3. Remanufacturing networks
considered a combined continuous and discrete facility location problem Remanufacturing network is generally concerned with mate- rial
and utilized a hybrid Tabu Search approach to develop the scenario based recovery from high value products (Blackburn et al., 2004). In most of the
model for a paper manufacturer. Literature on recy- cling network along with cases, remanufacturing is carried out by the man- ufacturers because of their
key remarks is summarized in Table 5a. Recycling network models are knowledge of products. Products are remanufactured by utilizing existing
designed for strategic decisions including number of facilities, location, facilities that forms a closed loop supply chain network (Fleischmann et al.,
region to be covered, and their capacity or size. Previous studies have been 2000). Uncertainty in terms quality, quantity and timing of product returns are
carried out in wide range of sectors for various propositions. The solution impor- tant factor for the success of remanufacturing network (Rogers and
method- ologies utilized by the previous researchers include deterministic, Tibben-Lembke, 1999). Since this network works as inter- mediary
stochastic modeling, simulation and heuristic methods. between the collection and redistribution, they form a fairly complex
multi level structure (Fleischmann et al., 1997). Kocabasoglu et al. (2007)
4.4.2. Reuse network conducted a survey empirically for assessing the linkages between supply
Direct reusable products require only minor inspection, cleaning and minor chain investments, orga- nizational willingness to take risk and business
maintenance. They are expected to form a flat network structure comprising a uncertainty, and found that ongoing investment in the forward supply
small number of levels. These products gen- erally go back to forward supply chain was more inclined toward recycling and waste management, but not in
chain and form a closed loop supply chain network (Fleischmann et al., remanufacturing. Wilcox et al. (2011) stated that the firms must manage
2000). A fairly large number of reuse cycles and absence of other uncertain cash flow problems due to the erratic and unpredictable cash
processing steps results in a higher transportation cost (Flapper, 1996). transactions associated with uncertain product returns.
This may be one of the reasons for having a decentralized network. At the Krikke et al. (1999a) reported a case for the returns, process- ing, and
same time decentralization renders balancing of product flows as an impor- tant recovery of discarded copiers. Products taken back from the customers were
task in direct reuse networks (Crainic et al., 1993). Guide and stored at pre determined locations and from there, were routed via recovery
Wassenhove, (2001) developed a framework for analyzing the profitability of processing facilities to the demand locations for determining the locations and
reuse activities and explored the influences of prod- uct returns on operational capacities of the recov- ery facilities as well as the transportation links
efficiency. connecting various
In past, different types of models and methodologies have been developed
for strategic decisions in reuse networks for different
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Table 5a
Review of recycling network models.

Authors Industry/Product Remarks

Barros et al. (1998) Sand Descriptive statistics based case study


Krikke et al. (1999a) Electronic A two-step procedure for optimizing a recovery strategy
Krikke et al. (1999b) PC-monitor OR-optimization models to determine an optimal degree of disassembly with optimal recovery
and disposal options
Shih (2001) Electrical A two-level location model for optimization using heuristic procedures
Le Blanc et al. (2004) LPG tanks A vehicle routing model, the redesign of a recycling system
Nagurney and Toyasaki (2005) E-waste Multi-tiered e-cycling network equilibrium model considering decision-makers, the
recyclers, the processors, and the consumers
Gomes et al. (2008) E-waste A multi criteria decision support system is developed
Ahluwalia and Nema (2006) Computer Waste Multi-objective model for minimizing environment risk and cost
Pati et al. (2006) Waste Paper A linear optimization model to compare total system cost of wood, as a raw material, with
recycling of waste paper
Kara et al. (2007) EOL Appliances A simulation model for collecting EOL appliances in the Sydney Metropolitan
Area
Pati et al. (2008) Waste Paper A mixed integer goal programming multi-objective model to determine the facility location, route
and flow of different varieties of recyclable wastepaper
Lee and Dong (2008) EOL Computers Developed a two stage heuristic approach by decomposing the integrated design networks into a
location allocation problem and a revised network flow problem
Choi and Fthenakis (2010) Photovoltaic An operational model for an actual recycling process for multiple scenario
Kannan et al. (2010) Battery A multi echelon, multi period, multi product closed loop supply chain network model for the
decisions regarding material procurement, production, distribution, recycling and disposal
Kara and Onut (2010) Paper Stochastic model to determine optimal facility locations and optimal flow under uncertainty
Sinha et al. (2010) Construction Minimization of total cost
Azadivar and Ordoobadi (2012) After Market A computer-based simulation model to determine the breakeven for the primary production
rate at which recycling is justified
Bautista and Pereira (2012) Municipal Waste Developed a genetic algorithm and a GRASP heuristic to solve problem
Dat et al. (2012) E-waste A mathematical model which minimizes the total processing cost considering costs of collection,
treatment, transportation and sales
Zeballos et al. (2012) Glass Industry Scenario based model simultaneously considering planning and design decisions under
uncertainty in terms of quantity and quality
Giannetti et al. (2013) Steel Analyzed network using emergy synthesis, and performed the system environmental
costs and benefits analyses
Lundkvist et al. (2013) Steel A mixed-integer linear programming model for optimization of a recovery strategy for waste
materials
Gołe˛biewski et al. (2013) Vehicle A genetic algorithm by considering the transportation and storage cost, and dismantling of
ELVs
Schweiger and Sahamie (2013) Paper A combined continuous and discrete facility location problem and utilized a hybrid Tabu Search
approach
Barrera and Cruz-Mejia (2014) Packaging Proposed solution for the collection routing problem by using “profitable visit algorithm”
Subulan et al. (2014) Tire Industry Designed a closed loop supply chain network with different recovery alternatives by
using Fuzzy Goal Programming
Ardjmand et al. (2015) Hazardous Materials Developed a genetic algorithm based model for the location, and routing in facilities and disposal
sites considering risk and transportation cost
Chen et al. (2014) Cartridges An Integer programming model considering delivery routes and quantity of different materials
for maximizing the recycling rate and profits
Demirel et al. (2014a,b) End of Life Vehicles A mixed integer linear programming model for network design considering
the de-polluting, dismantling, shredding and recycling of ELVs

locations. Jayaraman et al. (1999) developed a model to determine the location been utilized by researchers for dealing with uncertainties. How- ever, other
of distribution remanufacturing facilities, the trans- shipment, production, approaches like chaos theory have not been examined. Soleimani et al. (2013)
and stocking of the optimal quantities of the remanufactured products and developed a remanufacturing model incor- porating three important risk
cores. Guide and Pentico (2003) considered the case of a cellular phone measures mean absolute deviation, value at risk, and conditional value at risk.
remanufacturing firm that acquired used phones with different quality levels, Literature on remanufac- turing network along with key remarks is summarized
remanufactured them to a single quality level, and sold them at a certain in Table 5c. Remanufacturing networks model have been developed for wide
price. Pishvaee et al. (2009) developed a stochastic model for recovery and range of products providing solutions to various propositions of strategic
disposal considering uncertainty in the quantity and quality of returned issues.
products. Sasikumar et al. (2010) developed a multi criteria decision
making model for maximizing the profit of a multi echelon RL network for 4.4.4. Repairing network
tire remanufacturing in India. Korchi and Millet (2011) proposed different Repairing network is concerned with repairing, and servicing of
RL channels for supplying reusable modules for remanufacturing products products and return of those products to the customers. Since there is no link
with less environ- mental impact and higher economic benefits. Lee and Dong with forward supply chain, they form an open loop supply chain network
(2009) developed a stochastic model for dynamic network design under (Fleischmann et al., 2000). In decen- tralized operations, testing and
uncertainty.Ramezani et al. (2013) developed a stochastic model under grading close to the source may reduce transportation costs but investment
uncertainty for maximizing the profit, responsiveness, and quality focusing on for test equipment may require more centralized operations. Trade off
financial risk in RL. Stochastic modeling has between central- ized/decentralized operations and transportation cost is
needed
86 S. Agrawal
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Recycling
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76–92 86

Table 5b
Review of reuse network models.

Authors Industry/Product Remarks

Kroon and Vrijens (1995) Transportation packages A closed loop network with single level decentralized structure
Louwers et al. (1999) Carpet Waste A facility location allocation model for the collection and preprocessing with dynamic locations
Jayaraman et al. (2003) General A strong and a weak formulation for reverse distribution logistical problems including product recall, product
recycling and reuse, product disposal, and hazardous product return
Zikopoulos and Tagaras (2007) General A single period system with one refurbishing site and two supplying collection sites under uncertain
demand
Francesco et al. (2009) Shipping Containers Proposed a time-extended multi-scenario optimization model with consideration of shipping company
opinions
Geyer and Blass (2010) Cell Phone Examined the trade offs of cell phone reuse and recycling and concluded that cell phone reuse has a
healthy profit margin and recycling is a by-product of reuse
Salema et al. (2010) General Multi-period network model for the simultaneous design and planning of reverse supply chains
Meng and Wang (2011) Shipping Containers A mixed-integer linear programming model solved for real industry problems
Amin and Zhang (2012) General A general closed loop supply chain network that includes manufacturer, disassembly, refurbishing, and
disposal sites
Kissling et al. (2012) Electrical and Electronic equipment Developed the Social Enterprise Model, the Close the Digital Divide Model, the IT Asset
Management Model and the Networking Equipment Recovery Model
Silva et al. (2013) Packaging A returnable packaging model to minimize waste generation and environmental impacts
Lieckens et al. (2013) General A stochastic model for profit maximization to determine the optimal service delivery for a multi-product,
multi-level network
Xie et al. (2013) Electric Appliances Re-use reverse logistics network based on election campaign algorithm
Diabat et al. (2013) General A mixed integer non-linear programming for number and location of collection points, and centralized return
centers with the maximum holding time (collection frequency).
Dai and Wang (2014) Retailers Model for direct reuse reverse logistics center location by using stochastic simulation,
genetic algorithm and linear programming

for decision making. Generally a decentralized structure close to customer is products into the secondary market (Rogers et al., 2012). Literature on
preferred for this type of network (Fleischmann et al., secondary network is summarized in Table 5e.
2000).
Amini et al. (2005) discussed the competitive value of service management 4.5. Disposition decisions
activities, particularly repair services. A binary inte- ger programming model
was developed for the case study of a medical diagnostics center. Du and A schematic flow diagram of RL for product returns is shown in Fig. 1.
Evans (2008) analyzed RL net- works dealing with the returns requiring Products are returned by the users through product acqui- sition process, and
repair service for post sales services with objective of minimization of the are transported for inspection and separation. Inspection/sorting are carried out
overall costs, and minimization of total tardiness of cycle time. Lieckens for determining the action which recovers the most value from the returned
et al. (2013) build a stochastic model for profit maximization model to product, and products are disposition accordingly. Tan and Kumar (2006)
determine the optimal service delivery for a multi-product, multi- level network developed a system dynamics model for disposition of products for
for repairable service parts. Literature on repairing network along with key remanu- facturing or refurbishing. They found that part replacements from
remarks is summarized in Table 5d. There are very few repairing networks suppliers are more profitable than refurbished computer parts. Skinner et
models found in the literature. al. (2008) empirically examined the different disposi- tion strategies and found
that if adequate resource support for RL is not available then choose to destroy
4.4.5. Secondary market network the product because other disposition options like recycling or remanufacturing
For some firms, selling through the secondary market such as factory outlet require sig- nificant resources for recapturing value. In a study, Ketzenberg and
store owned and operated by the manufacturer, can be more profitable Zuidwijk (2009) found that investments to reduce the recovery cost or
than their volume channel through dis- tributors or retailers (Rogers and uncertainty of product returns are minimal, while invest- ments to increase
Tibben-Lembke, 1999). Abraham (2011) conducted an empirical study to map recovery speed and to reduce uncertainty may be expensive. Gobbi (2011)
and understand the RL systems in the apparel aftermarket in India and found considered product recovery value and found that low product recovery value is
that col- laboration between stakeholders can improve logistics, business associated with recycling and energy recovery, and high product recovery value
predictability and margins. Louwers et al. (1999) developed a model for is associated with reprocessing and reuse. When the recovery option is
recycling and reusing old carpets with an option of considering secondary recy- cling, time is not relevant; the primary objective is cost reduction. When
market for resale of carpets. Listes and Dekker (2005) proposed a stochastic the recovery option is reprocessing, time is primarily rel- evant, tradeoffs
programming model for recycling sand while considering selling the sand between costs and time efficiency are necessary. Hazen et al. (2012) identified
into the secondary market. Alumur et al. (2012) developed a RL model for seven RL disposition decision compo- nents by utilizing a problem-driven
washing machines and con- sidered an option of selling them into the content analysis methodology. The study considers wide range from corporate
secondary market. They found that major flow is sent to the secondary market strategy to business level strategy and also the external factors of disposition
because of more profit into the secondary market compared to revenues either decision making. Hazen (2011) also analyzed the strategic factors and used
from recycling or external remanufacturing. This shows that sec- ondary previous conceptual RL frameworks to provide a summary of these factors for
market can play an important role in the success of RL if explored properly. the improvements of RL functions. Although different firms in different
However, selling through secondary markets can be more complicated industries have been using potential disposition options (reuse, recycle,
than marketing new product. Suppli- ers are often concerned about brand remanufacture, repair) in practice, Genchev
equity and hesitate to enter
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and and
Recycling
Recycling
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76–92 87

Table 5c
Review of remanufacturing network models.

Authors Industry/Product Remarks

Jayaraman et al. (1999) Manufact. A single period mixed integer linear programming model based on a multi product capacitated
warehouse location
Krikke et al. (1999a) Discarded Copiers A mixed integer liner programming model based on a multi-level un-capacitated
warehouse location
Guide and Pentico (2003) Cellular Phone A model to determine the optimal acquisition prices for used phones and selling price for
remanufactured phones for profit maximization
Franke et al. (2006) Cellular Phone A linear optimization model considering quantity and conditions of mobile phones, reliability
of capacities, processing times, and demand
Kim et al. (2006) Manufact. Remanufacturing process of reusable parts by overhauling returned products to bring them back
to ‘as new’ condition.
Mitra (2007) Cellular Phone A pricing model to maximize the expected revenue
Salema et al. (2007) Office Documents A generic reverse logistics network considering capacity limits, multi-product management and
uncertainty on product demands and returns
Pishvaee et al. (2009) General Stochastic model for recovery and disposal considering uncertainty in the quantity and quality
of returned products
Pishvaee and Torabi (2010) General Multi Criteria Decision Making model considering risk and uncertainty Sasikumar et al. (2010)
Tire Model for maximizing the profit of a multi-echelon reverse logistics network Wongthatsanekorn et al. (2010) General
Multi-time scale Markov decision problem solved by using dynamic
programming, linear programming and Q-Learning approaches
Krikke (2011) Copier A decision framework for optimizing the combined disposition and location-
transport decision
Das and Chowdhury (2012) Retail To maximize profit by considering the collection of returned products, the recovery of modules and
the proportion of the product mix at different quality levels
Nenes and Nikolaidis (2012) Used Products A Mixed Integer Linear Programming model, for the optimization of procurement,
remanufacturing, stocking and salvaging decisions
Kannan et al. (2012c) Plastics products A mixed integer linear model based on carbon footprint minimizing climate change
Cardoso et al. (2003) Manufact. Optimization of the net present value for determining size and location of plants, warehouses and
retailers under demand uncertainty using a scenario tree approach
Huang and Su (2013) General A mathematical model for analyzing a capacitated reverse supply chain with single manufacturer
and multiple retailers for optimal batch size and maximal profit
Korchi and Millet (2011) Manufact. Remanufacturing products with less environmental impact and higher economic benefits
Ramezani et al. (2013) General Stochastic model under uncertainty for maximizing the profit, responsiveness, and quality focusing
financial risk
Vahdani et al. (2013) General To minimize the total costs for closed loop supply chain with multi-echelon, multi-facility,
multi-product and multi-supplier
Barker and Zabinsky (2014) Tire The AHP model with criteria and sub criteria including costs and business relations
Eskandarpour et al. (2014) General Tabu search-based heuristic method for computing optimal solutions and
Taguchi experimental design technique for parameter tuning of the heuristic
Gu and Tagaras (2014) General Focused on the optimal collection quantity for the collector, and for the remanufacturer using
game theory under both deterministic and uncertain demand
Niknejad and Petrovic (2014) General A two phase fuzzy mixed integer optimization algorithm by considering parameters, quantity of
returned products, unit repair costs, unit production
cost, setup costs and unit disposal cost

et al. (2011) revealed additional disposition options like return to the return, the condition of the product, and the congestion effect at the
manufacturer/supplier, return to stock, resale, balance inventory, and donate. remanufacturing facility. This model is helpful in extract- ing value from
A common disposition used by firms is prioritizing various options product return processes. Ozdemir-Akyıldırım et al. (2014) utilized opportunity
based on contribution margins of each disposition option (Ozdemir-Akyıldırım cost based dynamic models for selec- tion among different recovery options.
et al., 2014). Authors have developed some of the models for disposition Karamouzian et al. (2014) worked on queuing theory based optimal disposition
decisions based on other criteria and methodology. Guide et al. (2008) model which utilizes an acquisition policy by grading the returned
developed a model for the opti- mal disposition of returned products products. Objective of the study was to maximize the product recovery
considering the time value of value. Some of the multi criteria decision making models have

Table 5d
Review of repairing network models.

Authors Industry/Product Remarks

Krikke et al. (2003) Refrigerator Decision model for location allocation and product design for optimization of environmental
impact and total cost
Amini et al. (2005) Medical Diagnostic A binary integer programming model
Zhou and Wang (2008) General A mixed integer formulation, solved by using standard Branch & Bound techniques
Lieckens et al. (2013) General A stochastic model for profit maximization to determine the optimal service delivery for a multi-product,
multi-level network
88 S. Agrawal
S. Agrawal
et al.et/ al.
Resources,
/ Resources,
Conservation
Conservation
and and
Recycling
Recycling
97 (2015)
97 (2015)
76–92
76–92 88

Table 5e
Review of secondary market network models.

Authors Industry/Product Remarks

Louwers et al. (1999) Carpet A model for recycling and reusing old carpets with an option of considering secondary market for resale of carpets
Realff et al. (2004) Carpet Developed a mixed integer linear programming model for reverse production infrastructure design for recycling
Listes and Dekker (2005) Sand A stochastic programming model for recycling sand while considering selling the sand into the secondary market
Lieckens and Vandaele (2007) General A mixed integer nonlinear programming model with queuing model and genetic algorithm
Francas and Minner (2009) General Considering two cases, first where the newly manufactured and remanufactured products are sold on the same market
and second, the case where recovered products are in a secondary market
Abraham (2011) Apparel Aftermarket An empirical study
Alumur et al. (2012) Washing Machine A reverse logistics model for washing machines considering an option of selling them in to the secondary market
Matar et al. (2014) Plastic Beverage Bottles Costs based model validated through numerical analysis
Demirel et al. (2014a,b) General Mixed integer programming model, multi periods and multi-parts under two main policies as secondary market
pricing and incremental incentive policies
Huang et al. (2014) Retail Retailers’ inventory decision considering secondary market to salvage the returns and the leftovers from the
initial sales
Liu et al. (2014) E-waste Developed the network model by using theory of constrains

also been used for disposition decision making. Wadhwa et al. (2009) returns up to disposition level. The techniques used for model- ing
developed fuzzy-set theory based flexible decision model for selection of the include mathematical, analytical, simulation, and MCDM. The techniques or
best alternative of disposition strategy. Senthil et al. (2012) proposed a methodology used for a particular sector in a given scenario may be applied for
hybrid methodology based on AHP and TOPSIS under fuzzy environment other sectors also and may be compared with existing methodologies used by
for the selection and evalua- tion of manufacturer operations, third party the practioners. However, during the literature review, no study was
operations or joint operations. found regarding key performance indicators for forecasting product returns
which are important for accessing and monitoring the accuracy of models.
5. Discussion and research gap analysis
5.3. Outsourcing
Based on the literature review on categorized issues for the
study, research gaps were identified and analyzed by the researchers. Outsourcing has been the key word for the corporate world and
Summary of the findings and research gaps are dis- cussed in following researchers in the modernized business world. Firms are more focused toward
sub-sections. core competencies and outsourcing other activi- ties. It was observed that
RL is not the part of core business for many firms and it is a potential area
5.1. Adoption and implementation for outsourcing. As discussed in Section 4.3, outsourcing RL has been explored
both from strate- gic and operational perspectives in many sectors. Outsourcing
Successful adoption and implementation of RL in various sec- tors have RL and decision for selecting third party RL service providers were
been explored in many countries. Drivers and barriers are important for discussed frequently in the literatures and various mathematical, analytical, and
the decision making of the RL adoption and efficient implementation. MCDM had been applied for decision making. Most of the studies provided the
Previous research was focused on iden- tifying different factors at sector level information on outsourcing part of RL activities, mainly collection and
as shown in Tables 2 and 3. These factors may vary from sector to sector, transportation. No comprehen- sive frame work was found for decision
company to com- pany and may change over a period. There was no study making with respect to completely or partly outsourcing the product
found on comparative study on variation of these factors across the sectors and acquisition, reuse, recycle, repair or remanufacturing activities, and conditions
demographics. Previous studies were focused mainly on elec- tronic, under which these activities must be outsourced. In addition to this, it
manufacturing, tire, hospital and manufacturing industry. These studies were was also observed that no study analyzed the negative impact of outsourcing
carried out in limited sectors so there is scope for future study in other sectors RL functions on performance. The option of formation of joint consortium
like oil and gas, consumer goods, FMCG, plastics. Also, the risk assessment of was mentioned in some of studies (Huscroft et al., 2013), but this option is
RL has been mentioned in some of the studies but not explored exclusively. rarely considered in decision making. Joint formation just like
Risk assessment of RL implementation offers an opportunity for future telecommunication tower sharing model, may not only reduce the initial
research. investment but also may reduce operational costs. Any other alternative like
fourth party logistics provider has also not been explored much in reference to
5.2. Forecasting product returns RL. Since product returns are uncertain and economies of scale are difficult to
achieve, fourth party logistics can play a crucial role in RL through integration
Models developed for forecasting product returns for reuse, recycle, and collaboration.
remanufacturing by considering different business sce- narios are shown
in Table 4. However, none of them consider the factors like consumer 5.4. RL networks from secondary market perspective
behavior, customs and culture, demo- graphics, rules and regulations
collectively, which can make a very different scenario and may affect RL networks are designed for strategic decisions including num- ber of
forecasting product returns sub- stantially. No study was found to analyze the facilities, location, region to be covered, and their capacity or size. RL
sufficiency of these factors for forecasting product returns. Also, forcasting networks i.e. reuse, repairing, remanufacturing, recy- cling, modeled in the
methods were developed either for recycling or remanufacuring products past have been summarized in Tables 5a–5d.
but no comprehensive model was found for forecasting product
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The solution methodologies utilized by the previous researchers include made for future research opportunity. The opportunities for future research will
deterministic and stochastic modeling (linear/non lin- ear, mixed integer, help academicians, practitioners and researchers in their future work.
goal programming, queuing models), heuristic methods (genetic algorithm, Classifications and cited references may be used as a broad frame of references
Tabu-search, simulated annealing), MCDM (AHP, ANP, TOPSIS, DEA, to develop concepts and models for the future research. One of the limitations
ISM). Stochastic modeling is fre- quently being used for tackling uncertainties. of this study is that select issues were considered for the review. This work may
However, there is an opportunity to examine the other approaches like chaos be further extended for other issues like marketing, information technology in
theory for dealing with uncertainties. Tables 5a–5d indicate that mixed inte- ger the area of RL.
programming is the most common methodology used by the researchers. These
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