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Sustainability-based enterprise supply chain optimization and response under circular economy approach: agile, adaptive and coordinated

Yanhong Wu (College of Accounting, Zhanjiang University of Science and Technology, Zhanjiang, China) (Graduate Business School, UCSI University, Kuala Lumpur, Malaysia)
Renlan Wang (College of Accounting, Zhanjiang University of Science and Technology, Zhanjiang, China)

Management Decision

ISSN: 0025-1747

Article publication date: 26 September 2023

Issue publication date: 5 September 2024

452

Abstract

Purpose

From a supply chain perspective, logistics firms collaborate with other supply chain members to extend their business scope. Investment in circular economy projects in the supply chain can not only broaden the scope of business but also increase the value of the entire supply chain. Third-party logistics companies are gradually participating in the construction and operation of many circular economy projects. How to coordinate multiple circular economy supply chain projects is at the core of its operation.

Design/methodology/approach

This paper first analyzes some typical supply chain projects in China and summarizes the main features of these projects. Secondly, considering the benefits of the project and the stakes of each project, a multi-stage stochastic programming model is established. Finally, Cplex, nested decomposition, LocalSolver and other methods are adopted to simulate and analyze the model.

Findings

The final experimental results find that the importance of coordinating multiple circular economy supply chain projects to increase the value of the entire supply chain. The multi-stage stochastic programming model presented in this research can provide a useful tool for logistics enterprises and third-party logistics companies to optimize their investment decisions and maximize their profits in the context of a circular economy.

Research limitations/implications

There are still some limitations to this study; for example, it is limited to the analysis of circular economy supply chain projects in China. The study focused on third-party logistics companies, and other enterprises in the circular economy supply chain were not considered. The research also assumed that the benefits of each circular economy project and the stakes of each project were known, which may not always be the case in real-world scenarios.

Originality/value

This manuscript found that investing in other circular economy projects in the supply chain can broaden the scope of business and increase the value of the entire supply chain. Third-party logistics companies are gradually participating in the construction and operation of many circular economy projects, such as recycling and repurposing initiatives. It highlights the importance of coordinating multiple circular economy supply chain projects to increase the value of the entire supply chain. The multi-stage stochastic programming model presented in this research can provide a useful tool for logistics enterprises and third-party logistics companies to optimize their investment decisions and maximize their profits in the context of a circular economy.

Keywords

Acknowledgements

Funding: Zhanjiang University of Science and Technology 2022 university-level scientific research project: Enterprise supply chain Optimization and Response based on sustainable development: Agility, adaptation and coordination research, Grant number kjcky202209jxtd.

Conflict of interest: The authors declare that the research was conducted in the absence of any commercial or financial relationships that could be construed as a potential conflict of interest.

Data availability statements: The datasets used and/or analyzed during the current study are available from the corresponding author upon reasonable request.

Expression of concern: The publisher of Management Decision is issuing an Expression of Concern for the following article Wu, Y. and Wang, R. (2023), “Sustainability-based enterprise supply chain optimization and response under circular economy approach: agile, adaptive and coordinated”, Management Decision, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/MD-02-2023-0250, which was submitted to the guest-edited special issue ‘Navigating the role of circular economy in entrepreneurship: Opportunities and challenges’. An investigation by the publisher found a number of articles with multiple concerns, including but not limited to compromised editorial handling and reviewing, undisclosed conflicts of interest, and lack of suitability for the scope of the journal. As a result of these concerns and as trust in the content is central to the integrity of the publication process, the Editor-in-Chief and publisher have taken the decision to publish an Expression of Concern for all articles within this special issue. The journal has not been able to confirm whether the authors were aware of these concerns. The authors of this article would like to note that they do not agree with the content of this notice. An investigation is ongoing and is currently unresolved. Further information will be provided by Management Decision as it becomes available. The publisher of the journal sincerely apologizes to the readers and authors of this article, who were not found to be involved in any malpractice.

Citation

Wu, Y. and Wang, R. (2024), "Sustainability-based enterprise supply chain optimization and response under circular economy approach: agile, adaptive and coordinated", Management Decision, Vol. 62 No. 9, pp. 2737-2762. https://doi.org/10.1108/MD-02-2023-0250

Publisher

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Emerald Publishing Limited

Copyright © 2023, Emerald Publishing Limited

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