Quotation Reiner, Gerald, Gold, Stefan, Olip, Tanja, Rabta, Boualem. 2019. Revenue sharing contracts for overcoming trade-offs when establishing circular supply chains. 30th European Conference on Operational Research, Dublin, Irland, 23.06-26.06.


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Abstract

Establishing circularity in supply chains is often believed to hamper financial and economic business targets. Current developments have underlined those kinds of trade-offs in various industries. For example, smartphone manufacturers are facing related challenges of decreased sales and revenues as customers start keeping their devices longer. Against this background, the main research objective is to investigate incentives across supply chain partners to overcome such trade-offs in order to accelerate the transformation to circular supply chains. For this end, we consider different business models for sustainability as well as business models for circular supply chains. They are evaluated under consideration of value creation capacity, captured value, customer value proposition and environmental value proposition. Inspired by real supply chains we develop a dynamic multistage supply chain model that addresses different usage times (discard rates) like in the mobile phone industry or automotive industry. We investigate how supply chain contract design helps overcoming related trade-offs and thus eliminating obstacles for the implementation of circular supply chains. This research focuses on revenue sharing contracts to create a win-win setting for manufacturers, service providers (retailers, carriers etc.) and consumers to overcompensate potential drawbacks of closing product and material flows, as by repair, reuse, redistribution, refurbishment and remanufacture.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Paper presented at an academic conference or symposium
Language English
Title Revenue sharing contracts for overcoming trade-offs when establishing circular supply chains
Event 30th European Conference on Operational Research
Year 2019
Date 23.06-26.06
Country Ireland
Location Dublin
URL https://www.euro-online.org/conferences/program/#abstract/1456

Associations

People
Reiner, Gerald (Details)
Rabta, Boualem (Details)
External
Gold, Stefan (Univesity of Kasel, Germany)
Olip, Tanja (AAU Klagenfurt, Austria)
Organization
Production Management IN (Details)
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