Product Modularity and the Design of Closed-Loop Supply Chains

The article focuses on the design of closed-loop supply chains and product modularity. Trends of product leasing, shorter product replacement cycles, and increased warranty claims are leading to increase instances of product returns separate from environmental legislation. Closed-loop supply chains consist of a forward supply chain and a reverse supply chain. The author discusses several ways that a supply-loop may be closed, including the reuse of a product as a whole or just its materials. The majority of closed-loop supply chains utilize a combination of reuse options, processing returns through the most profitable route. The author discusses the sorting of returns based on quality and composition.