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Open AccessArticle

Profit Analysis and Supply Chain Planning Model for Closed-Loop Supply Chain in Fashion Industry

Department of Information and Industrial Engineering, Yonsei University, 50 Yonsei-ro, Seoul 120-749, Korea
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Sustainability 2014, 6(12), 9027-9056; https://doi.org/10.3390/su6129027
Received: 23 September 2014 / Revised: 12 November 2014 / Accepted: 26 November 2014 / Published: 9 December 2014
(This article belongs to the Special Issue Sustainability in Fashion Business Operations)
In recent decades, due to market growth and use of synthetic fiber, the fashion industry faces a rapid increase of CO2 emission throughout the production cycle and raises environmental issues in recovery processing. This study proposes a closed-loop supply chain (CLSC) structure in fashion industry and develops its planning model as multi-objective mixed integer linear programming to find an optimal trade-off between CLSC profit and CO2 emission. The planning model is associated with the profit analysis of each member in CLSC to find the optimal price of products on CLSC network. The model determines optimal production, transportation, and inventory quantities on CLSC network. The proposed models are validated using numerical experiments and sensitivity analyses, and from the results some managerial insights are addressed. View Full-Text
Keywords: closed-loop supply chain; fashion industry; profit analysis; supply planning model; sustainable supply chain management; CO2 emission closed-loop supply chain; fashion industry; profit analysis; supply planning model; sustainable supply chain management; CO2 emission
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Oh, J.; Jeong, B. Profit Analysis and Supply Chain Planning Model for Closed-Loop Supply Chain in Fashion Industry. Sustainability 2014, 6, 9027-9056.

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