Food Supply Chain and Business Model Innovation

This paper investigates the contribution of business model innovations in the advancement of novel food supply chains. Through a systematic literature review, the notable business model innovations in the food industry are identified, surveyed, and evaluated. Findings reveal that the innovations in value proposition, value creation processes, and value delivery processes of business models are the successful strategies proposed in food industry. It is further disclosed that rural female entrepreneurs, social movements, and also urban conditions are the most important driving forces causing farmers to reconsider their business models. In addition, the new technologies and environmental factors are the secondary contributors in business model innovation for the food processors. It is concluded that digitalization has disruptively changed the food distributor models. E-commerce models and Internet-of-Things are reported as the essential factors causing retailers to innovate their business models. Furthermore, consumption demand and product quality are two main factors affecting the business models of all the firms operating in the food supply chain regardless of their positions in the chain. The findings of the current study provide an insight into the food industry to design a sustainable business model to bridge the gap between food supply and food demand.

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title: Food wedges: Framing the global food demand and supply challenge towards 2050
abstract: A projection of global food demand to 2050, with assumptions on population growth, dietary shifts and biofuel expansion, provides an estimate of the amount of additional food needed over the next 40 years to satisfy human needs. This additional food demand, expressed in kilocalories, represents a “mega-wedge” akin to the carbon stabilisation wedges of Pacala and Socolow (2004). This food demand challenge consists of three component “food wedges” classed according to their target pathways: i.e. pathways that target reducing food demand; pathways that target increasing food production; and pathways that target sustaining the productive capacity of food systems. In this paper we examine these wedges in terms of prospective pathways through which food supply and demand can stay in balance over the next 40 years. Within these wedge classes, we nominate 14 pathways that are likely to make up the food security ‘solution space’. These prospective pathways are tested through a survey of 86 food security researchers who provided their views on the likely significance of each pathway to satisfy projected global food demand to 2050. The targeting of pathways that contribute to filling the production gap was ranked as the most important strategy by surveyed experts; they nominated that 46% of the required additional food demand is likely to be achieved through pathways that increase food production. Pathways that contribute to sustaining the productive capacity are nominated to account for 34% of the challenge and 20% might be met by better food demand management. However, not one of the 14 pathways was overwhelmingly ranked higher than other pathways. This paper contributes a simple and comprehensive framing of the “solution space” to the future food demand challenge and a portfolio of investment pathways proposed to meet this challenge.

title: Effects of climate change on global food production under SRES emissions and socio-economic scenarios
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title: Application of planning models in the agri-food supply chain: A review
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title: A perspective on operational research prospects for agriculture
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title: Effective food supply chains; generating, modelling and evaluating supply chain scenarios
abstract: The research described in this thesis aimed at ! obtaining insight into the applicability of the concept Supply Chain Management (SCM) in food supply chains (SCs) from a logistical point of view, and " finding an efficient and effective method to analyse and redesign the SC to improve SC performance. Via a multidisciplinary literature research the concept of SCM was defined and a generic list of SCM redesign principles was generated. Three case studies were used to devise a research method on the generation, modelling and evaluation of SC scenarios. Central elements in this method are ! the focus on the identification and management of the sources of uncertainties in SC decision making processes, and " the use of simulation and field tests to evaluate SC scenarios. A modelling framework was developed in this research that captures the relevant concepts of the SC system needed to adequately model and simulate the dynamic behaviour of food SCs. In each case study a new SC scenario could be identified that performed considerably better than the current scenario.  2000, J.G.A.J. van der Vorst All rights reserved. No part of this publication may be reproduced in any form or by any means without prior permission of the author.

title: Success of urban farming’s city-adjustments and business models—Findings from a survey among farmers in Ruhr Metropolis, Germany
abstract: Economic data of urban farming are scarce, while the discourse on urban farming’s business models is progressively emerging since few years. Data of a web survey among farm managers in polycentric Ruhr Metropolis, Germany, is used here to address the research question whether city-adjusted farms are more successful than non-city-adjusted farms. Farms’ common city-adjustment strategies high-value production, direct marketing, participative concepts, and tourism services as well as the spatial self-assessment of the farm managers are applied to cluster and analyse them. The 180 farms are clustered via a Complete Linkage cluster analysis into five groups, whereof three are city-adjusted clusters and two are non-city-adjusted clusters. City-adjusted farms are more successful than non-city-adjusted ones. Compared to their counterpart, city-adjusted farms name better economic farm situations, predict more positive farm prospects and more assured farm successions. Additionally, they appoint more Unique Selling Propositions for their farms and make use of agricultural extension services more often. Farm business declines and farm closures are predicted very little by the city-adjusted farms, which fit to the prevalence of named urban advantages over disadvantages. These findings contribute to the lack of reliable data used to orientate policy on agriculture and food within wider metropolitan areas and urban environments.

title: The role of public subsidies for efficiency and environmental adaptation of farming: A multi-layered business model based on functional foods and rural women
abstract: This paper examines the role of public subsidies on farming efficiency for Spain by using a Data Envelopment Analysis (DEA) approach followed by a nonparametric regression of efficiency to farm specific factors (economic size, environmentally friendly behavior and regional aspects). The empirical analysis suggest that although a higher degree of direct payments negatively affects farm efficiency, these subsidies become an incentive for environmental friendly behavior by farmers in order to improve the productive efficiency. In turn, this proposition leads to a careful attention for the roots of agricultural productions in line to the EU aim of more market-oriented agriculture. Then, a conceptual framework was elaborated in order to propose a multi-layered model for supporting the design of a green business plan based on functional foods. This study also explores the process of generation-production-consumption of functional foods, involving not only the knowledge transfer of the healthy properties of these products but also the multiple role of rural women as producers, educators/advisors and buyers of these foods. The positioning of rural women in the whole process of functional foods results relevant to build their competitive advantage as local entrepreneurs. The leverage points of the strategic formulation of green business models were reinforced following the roadmapping methodology from a dynamic perspective: alliances with suppliers of knowledge (researchers), identification with their reference groups (investors, clients) and management of intellectual capital (structural, human, relational). Finally, findings reveal that rural women are better positioned than others to create businesses based on functional foods from a niche formulation.

title: Business models in urban farming: A comparative analysis of case studies from Spain, Italy and Germany
abstract: The “Urban Agriculture Europe” EU COST-Action (2012–2016) has shown that the complexity of urban agriculture (UA) is hardly compressible into classic business management models and has proposed new management models, such as the Business Model Canvas (BMC). Business models of UA have to be different from rural ones. In particular, factors such as differentiation and diversification, but also low cost-oriented specialisation, are characteristic and necessary business models for UA to stay profitable in the long term under challenging city conditions. This paper aims to highlight how farm enterprises have to adjust to urban conditions by stepping into appropriate business models aiming to stay competitive and profitable, and how the BMC is useful to analyse their organisation and performance, both economically and socially. The paper offers an inter-regional analysis of UA enterprises located in Spain, Italy, and Germany, which are further subdivided into: local food, leisure, educational, social, therapeutic, agri-environmental, cultural heritage and experimental farms. The analysis demonstrates that UA is differentially adjusted to specific urban conditions and that the BMC is useful for analysing urban farming. Heterogeneous local food farms and the integration of local and organic food production in social farming business models are most frequent in our case studies.

title: Value net – a new business model for the food industry?
abstract: The study aims to discuss the new value creation logic of value nets and analyze the characteristics of value nets in the context of the food industry. Previous research has shown that along with the growing importance of networking, the value creation logic is also changing from traditional chains to dynamic networks. The objective of this study is to define the characteristics of value nets and to analyze the suitability of the value net as a value creation and business model in the food industry. The study utilizes a case research as a method and analyzes a value net from the Finnish food industry. The empirical data comprises 29 individual semi‐structured interviews conducted with the personnel of four case companies. The findings of the study suggest that the value net as a business model and value creation model is also suitable for food sector companies. The value net has several characteristics that were found to be significant and useful for food c...

title: How to strengthen the business model of an Italian family food business
abstract: The purpose of this paper is to focus on how a medium-sized company operating in the food sector should strengthen its business model, thanks to a combination between tradition and innovation.




Design/methodology/approach




This research focuses on one case study. The subject of the case study under analysis is Golosita dal 1885, an internationally recognized fine food Italian company.




Findings




Golosita dal 1885 is characterized by a strong combination of tradition and innovation, both in products and processes. The company’s competitiveness is the result of a balanced management of innovation, in respect of the family’s values, thanks to the active presence of two family generations.




Research limitations/implications




This study is characterized for some limitations, related to the method and to the choice of a single case study. In terms of theoretical implications, the study emphasizes the importance of the link between the food sector and the region it is rooted in.




Practical implications




Practical implications relate to different groups of stakeholders: for owners and management, for investors, for organizations and institutions working on a territory promotion and in the tourism sector, and for politicians and local authorities.




The originality of the research is represented by a focusing on how a strategy based on an effective combination between tradition and innovation should increase the competitive advantage, especially in a mature sector – as the food one – characterized by the need to offer a differentiated and innovative range of products and services for overcoming the consumptions crisis.

title: Sustainable business development process: the case of the food and beverage industry
abstract: The number of SMEs is growing rapidly, because owning one’s own business became a trend in the 21 century. Entrepreneurs seek freedom, money and sustainable development, however the U.S. Small Business Administration indicated that more than 95% of SMEs bankrupt in the first 5 years [24]. Consumers started to be more aware of health issues and the obesity problem in the world, therefore government interference is inevitable. The recently implemented health taxes in several EU countries largely affected the competitive environment of the food and beverage industry. Therefore, the goal of this paper is to develop a sustainable business development process oriented to the food and beverage industry. The methodology in this study consisted of business strategy development based on a food and beverage industry’s case study; the results were elaborated by referring to the Canvas Business Model concept and the Four Factors to Success concept. The Canvas Business model is oriented to all industries and does not consider the health and natural product trend. The authors’ created methodology includes legislative issues and elements of business support in the business development process. The developed business model methodology identifies the importance of legislative issues, use of ingredients, the brand’s image and distribution strategies based on early adopters. Moreover, a business support system is included in the strategy, which is not considered by other research on the topic. These findings can also be used in the fast-moving consumer goods industry for achieving a sustainable competitive advantage. Health, obesity and consumer’s rights is now a concern for the world. Business development models that consider the trend of health would be beneficial in lowering the obesity rate in the world.

title: Sustainable Development and Business Models of Entrepreneurs in the Organic Food Industry
abstract: The business case for a sustainable firm, in particular the business case for new entrepreneurial initiatives responding to environmental demands, is increasingly receiving attention from practitioners and scholars. This article contributes to existing literature on business models, sustainable development and entrepreneurship, by applying components of business models to the practices of entrepreneurs that have a goal of environmental sustainability and a focus on the mass market (i.e. ecopreneurs). We define the ecopreneurial business model and specify four varieties of this business model, which consist of different combinations of environmental scope and a focus on the mass market and profitability. The distinguishing factor of the ecopreneurial business model is that it transforms disvalue into value, thereby creating greater customer value for environmentally concerned consumers. The results are based on a substantial set of interviews among ecopreneurs in the organic food and beverage industry in the Netherlands.

title: Integrating wireless sensor networks with statistical quality control to develop a cold chain system in food industries
abstract: Cold chain management is of importance for manufacturers in the food industry since they face the dilemma of having to choose between frozen storage and cool storage in delivering products to retailers or end-consumers. Frozen storage incurs high-energy consumption for the preservation of food products, whereas cool storage involves the constant threat of bacterial decay. Contemporary cold-chain development in temperature control usually focuses on single logistic chain rather than serving multiple channels. In order to overcome the aforementioned deficiency, this study proposes a time-temperature indicator (TTI) based cold-chain system, which uses wireless sensors for collecting temperature data and implements the formulation of Critical Control Point (CCP) criteria throughout the entire delivery process. In particular, this approach is based on an Internet-of-Things (IoT) architecture as well as international food standards named ISO 22,000. More importantly, four new business models including (1) cold chain home-delivery service; (2) Convenience store (CVS) indirect delivery; (3) CVS direct delivery; (4) flight kitchen service, are successfully developed for conducting performance assessment. Experimental results indicate that the proposed framework can increase annual sales of braised pork rice from 4.44 million bowls to over 6 million bowls, create more distribution channels to increase extra revenue of more than US$6.35 million, and reduce 10% energy consumption in central kitchens to enhance turnover of electricity from US$14.23 raised to US$18.64 per kilowatt hour. Wireless sensors are adopted to construct a time-temperature indicator system,Switching from frozen storage to cool storage is achieved in a food cold chain,Annual rice sales are increased from 4.44 million bowls to over 6 million bowls,More than 150 jobs and extra revenue of 6.35 million in $USD are created,10% reduction in energy costs is accomplished to enhance turnover of electricity.

title: Digital Food Hubs as Disruptive Business Models Based on Coopetition and “Shared Value” for Sustainability in the Agri-Food Sector
abstract: The chapter introduces digital food hubs as disruptive business models in the agri-food system shifting away from the unsustainable industrialized and conventional food sector and moving toward a re-localized food and farming pattern. They are new digital business models developed to support small and mid-size farms with a value focus, forming new ways to leverage the technology as a facilitator for coopetitive organizational forms. Indeed, they respond to a competitive strategy constituted by a “value strategy” oriented to the production and distribution of “shared value.” Second, they are based on an “organizational strategy” that shifts from individual competition to “coopetition” through the development of local “strategic networks” among small size producers. Central to the development of these business models is the digital disruption that has offered the space for the creation of unconventional exchange and transaction mechanisms distinguishing them from the already existing traditional ways of work. The agri-food markets exhibit structural holes that impede small farms from connecting with local consumers. This is due to a lack of material infrastructures and organizational forms on behalf of small farms that cannot reach the consumers, as well as the concentration of power in the hands of a restricted numbers of distributors, which causes the unequal redistribution of the economic value and impedes small farms accessing the food market. The advent of the digital technology is reshaping the market relationship by allowing out centralized intermediaries and creating new bridges between producers and consumers.

title: Developing a service offering for a logistical service provider—Case of local food supply chain
abstract: This study introduces a process of building potential business models for a logistic service provider operating in a local food supply chain. As a starting point, the logistical service needs of different participants in regional food supply chains are analyzed. Based on the analysis, two potential service offerings for a logistical service provider or an integrating entrepreneur of a local food supply chain are formed. Business models for the two service offerings are developed and analyzed using the Business Model Canvas. The study shows that this approach builds a logical connection between the services offered and the fundaments of the business of a logistic service provider.

title: Place-based business models for resilient local economies: Cases from Italian slow food, agritourism and thealbergo diffuso
abstract: This purpose of this paper is to introduce and analyze the concept of place-based business models, by which entrepreneurs use highly context-specific strategies and linkages to a “sense of place” as sources of value creation. To illustrate how place-based business models create unique value, case studies are reviewed from three sectors in Italy: Slow Food (Coop Italia and Eataly), agritourism (Spannocchia) and the Design/methodology/approach - This is a conceptual paper with case studies from qualitative data and external sources.  The case studies demonstrate the value-creating potential of opportunities for the implementation of place-based business models. In contrast with conventional harm reduction perspectives, these models show how organizational contributions to local and regional resilience may also directly generate competitive advantage. The cases also illustrate challenges such as scaling up while maintaining authenticity, and coping with the public goods-nature of place-based resources.  Conventional management theory and practice treat environmental context as a distraction from which the technical core of the organization must be protected. Place-based business models diverge from convention by using tight coupling with local context to create value, enhance local economic resilience and contribute to a “sense of place”.

title: A sustainable business model to fight food waste
abstract: Food waste is major problem in developed countries, with the latest studies pointing to one third of the food produced worldwide. This problem occurs throughout the food value stream and has economic, environmental and social consequences. This study focuses on a solution developed in Portugal for a specific type of waste, vegetables and fruits discarded by farmers due to aesthetic reasons. Although with the same quality, their appearance is not within the requirements set by the main retailers and therefore not commercialized and consumed. The project developed to tackle this problem is a non-profit co-op, called Fruta Feia (Ugly Fruit) that commercializes this type of products that farmers cannot sell through the conventional channels. Tested successfully in Lisbon region, is now being replicated in Porto region. This study aims at assessing the sustainability of this project and its business model regarding the three pillars of sustainability – economic, environmental and social. For this, Life Cycle Assessment, investment appraisal, Social-Life Cycle Assessment and Social Return on Investment methods are used and compared, aiming also at the discussion of the key success factors of Fruta Feia project. Results showed not only the sustainability of the project, but also the suitability of the methods applied to assess the sustainability of a business model.

title: Research on the Innovation of Strategic Business Model in Green Agricultural Products Based on Internet of Things (IOT)
abstract: In China, more and more daily food consuming has transferred from quantity to quality, and with economic development and people's living standards improve, more people like green food. The paper analyzes the characteristics of Green Agricultural products, combining the use of modern information technology-Internet of Things(IOT),and proposed an innovative Business Strategy Model. With the change and innovation of business model, the development of technology and its application are incalculable and sometimes even decisive factor.

title: Innovative e‐commerce model for food tourism products
abstract: The applications and opportunities for e-commerce are increasing. The unique features of the Internet have changed the styles and competition of enterprises. The key factor for the survival of enterprises in this competitive environment is whether they know how to make use of these features to maximise advantages and to make profits. Different enterprises' e-commerce business models were investigated in the food souvenir industry in Hualien, Taiwan. This study combines the characteristics of network marketing and develops a business model for e-commerce. This innovative business model in e-commerce suggests a new paradigm for traditional industries.

title: Fresh milk supply through vending machines: Consumption patterns and associated environmental impacts
abstract: Fresh pasteurized milk consumption is evaluated from environmental and socio-economic perspectives. Two different supply chains are analysed: traditional supply chain and vending machines—a circular business model based on a short supply chain. Milk vending machines show that consuming milk in proximity, eliminating intermediaries between producers and consumers and, therefore, reducing the use of resources and energy (packaging and transportation), has environmental advantages. Hence, milk distribution, electricity consumption and consumer transport caused the largest impacts. When the environmental profiles of pasteurized milk consumption in supermarkets and vending machines are benchmarked, the vending machine has a considerable lower impact. The sensitivity analysis emphasizes the latter findings, highlighting the relevance of consumer choices upon the environmental profile of milk consumption. Despite the environmental benefits, vending supply chain unexpectedly failed in Spain from a socioeconomic point of view due to several factors: the farmers’ lack of processing and marketing capacities, the difficulty of networking and collaboration with other key stakeholders, the necessity to raise consumer awareness of the benefits of pasteurized milk and the limited range of dairy products offered. The development of a close short supply chain can bring significant environmental and socio-economic benefits. Notwithstanding, the case analysed in this paper indicates that the isolated entrepreneurship is not sufficient and the transformation of the food system towards a circular model requires political and societal commitment.

title: Business Model Innovation for Sustainable Performance in Retail and Hospitality Industries
abstract: In the service sector, technological innovation is typically dominated by suppliers, and hence involves external knowledge that can be easily acquired and imitated by competitors. However, innovation that can sustain superior performance in retail and hospitality firms tends to be internal and non-technical, involving business models. Building on the perspectives of the resource-based view and dynamic capability, this study aims to understand how industry turbulence in retail and hospitality affects the sustainable competitive advantage of the firms operating in these service industries. Based on a quantitative study of 214 retail and food services companies, our study has empirically demonstrated that firms operating in an industry with high turbulence have a higher probability of achieving a sustainable competitive advantage. Second, our findings establish that a firm’s business model innovation (BMI) activities partially mediate this positive relationship. This suggests that BMI plays a role in enhancing the firm’s ability to address the challenges of the present, as well as prepare itself to adapt to the industry evolution and revolution of the future. BMI not only influences the acquisition and application of external innovations, it also affects the generation of internal innovations.

title: Business model innovation for sustainability: a food start-up case study
abstract: The purpose of this paper is to investigate and present the way in which a food start-up can develop business model innovations, taking into account the importance of social and environmental issues.,The authors studied an Italian pizzeria, implementing the illustrative single-case study methodology, to answer the research question: “how can food start-ups develop a sustainable business model innovation?”,The study highlights sustainable elements for each component of the business model configuration provided by Osterwalder to provide a deeper view of the sustainable business model concept.,The study contributes to the extant research introducing the concept of sustainable innovation within the business model literature. It concludes that, within the food industry, especially for start-ups, the development of sustainable business model innovation is particularly important because the industry is itself linked with nature and human respect. Moreover, it suggests a methodological analysis of the business model configuration, which will help to develop clearer and more accurate and influential research.

title: NUTRITION BUSINESS MODELS OF CONSUMER BEHAVIOUR WHENPURCHASING SELF-EXPLANATORY FOOD PRODUCTS
abstract: Successful operation of large companies is very de- 
pendent on having information on consumer’s deci- 
sions and shopping schemes for best buyers. Various 
 
methods are used to predict their behaviour when 
purchasing food products. These phenomena are 
 
complex, but despite their diversity, they have struc- 
tural and functional characteristics which can efficient- 
ly be simulated with modelling, and later on the basis 
 
of the generated model, to create powerful and easy 
to use software. The research subject of this paper is 
modelling for creating business models of consumer 
behaviour when purchasing food products, including 
 
the nutrition determinant. The aim is to develop a nu- 
trition business model of consumer behaviour in order 
 
to obtain information on the extent of the impact of 
labelling when buying food products and information 
 
related to significant new elements of nutritional de- 
terminant that should be included in foodstuffs. 
 
This paper showcases a concept of modelling for build- 
ing a business model of consumer behaviour when 
 
purchasing food products. The model is developed by 
 
using modern technologies such as GIS and data min- 
ing. The modelling is done in several stages in relation- 
al entity connection, with a self-explanatory model. In 
 
order for there to be a partial implementation of the 
nutrition behaviour pattern, as part of the research a 
survey was conducted among students enrolled in the 
first and second cycle at the Faculty of Technology and 
Technical sciences in Veles and the analysis included 
statistical methods One of them is a Statistical model 
for t-test. 
In building the business models of consumer behaviour 
when purchasing food products, it is necessary to use 
 
advanced methods and technology. This will contrib- 
ute to raising business models to a higher level. Spe- 
cifically, patterns of consumer nutrition behaviour will 
 
enable obtaining information on the impact and role 
 
of nutrition determinant on consumer behaviour and 
the need for improvement and production of healthy 
food products. 
 
 Nutrition Business Model for Consumer 
Behaviour, Nutrition Modelling, Data Mining, GIS.

title: Helping Agribusinesses—Small Millets Value Chain—To Grow in India
abstract: Small millets, a group of highly nutritious food, have taken a back seat in the Indian agriculture landscape in recent years, due to government policies and failings in the value chain. In this commentary, the unusual decline of small millets in comparison to its substitutes, and the repercussions thereof, were first presented as context. Thereafter, based on analysis of data from literature, survey, and stakeholder contributions, a cluster map for the Indian small millets value chain was designed, and its competitive state presented. This information was used to conceptualize an open innovation driven business model, and an ecosystem for the proposed model was discussed. This commentary provides the first cluster map analysis of small millets value chain in India, and a business model-based approach to stimulating its agribusinesses growth through a synthesis of stakeholders’ contributions and market data.

title: Towards a Conceptual Framework of Sustainable Business Model Innovation in the Agri-Food Sector: A Systematic Literature Review
abstract: This paper aims to increase our understanding of sustainable business model innovation in the agri-food sector in terms of its theoretical and practical approaches for sustainability and their degree of complexity and maturity. The paper is based on a systematic literature review of 570 journal articles on business models and business model innovation published between 1990 and 2014. Of these articles, only 21 have business model innovation as their main focus. The review shows that research interest in the agri-food sector has increased in these years. The paper proposes a conceptual framework for sustainable business model innovation in the agri-food sector that can be used to meet the challenges encountered in taking a sustainability perspective.

title: Barriers to business model innovation in the agri-food industry: A systematic literature review
abstract: The importance of business model innovation (BMI) is widely recognized. BMI is especially important in the agri-food industry that faces enormous challenges as the demand for food increases worldwide. Much of the BMI research focuses on the technology and biomedical industries. Far less attention has been paid to the agri-food industry. This article is a systematic literature review of the BMI research in the agri-food industry. The article’s aim is to identify and categorize various barriers to BMI as described in the literature (in English) published in peer-reviewed journals between 1990 and 2014. The findings show a fairly even distribution among external and internal BMI barriers. Because the main barrier is the mind-set that is resistant to change, it is recommended the researchers and practitioners should focus more on the cognitive barriers to BMI in the agri-food industry.

title: Selection of remanufacturing/production cycles with an alternative market: A perspective on waste management
abstract: Reduction of waiting time and waste directly improves the quality of supply chain and its sequence. The cost and energy consumption vary thereby resulting in an evolving sustainability. This paper investigates the policy that proves the optimum in reduction of such time and the condition, under which the said policies can be feasible. A mathematical model has been developed to analyse two approaches of the replenishment cycles with respect to the waste management. A closed-structured supply chain model has been considered with a primary and secondary market concepts having overlapped and in sequence manufacturing/remanufacturing policies. Through an analytical model, the minimization of total cost has been achieved. Some solutions of the decision variables are obtained in quasi-closed form. The way to use the used or waste from primary supply chain is found very useful for the secondary supply chain. Numerical study finds that the waiting time for the primary market is reduced by 84.62% and the cost is decreased by 1.38% by adopting the right policy such that the waste is reduced remarkably.

title: Recovery-channel selection in a hybrid manufacturing-remanufacturing production model with RFID and product quality
abstract: Due to the accelerated expansion of technology and improved living standards, the use of electronic products is increasing exponentially. Unfortunately, the improper disposal of used electronic products, such as cell phones, has resulted in rapid degradation of the environment and is, therefore, posing a great threat to human health. Meanwhile, proper recycling is also likely to generate high profits; thus, recycling of electronic products is a necessity of the time. However, the profitability of recycling and remanufacturing depends upon the return rate, which is very low in the cell phones industry. In this paper, we first identify the root causes of low return rate and, then, develop a novel Radio Frequency Identification (RFID) based return channel to increase the recycling rate. A dual-recovery-channel hybrid manufacturing-remanufacturing production model is proposed, which procure used products of different quality from both the traditional market-driven recovery channel as well as the new RFID based channel. A mathematical model is developed considering the cost of implementation and the design of the proposed RFID based recovery channel. Recovery-channel selection is studied, and results show that a hybrid collection strategy with 85% share of channel-1 and 15% of channel-2 is the optimal one. Moreover, the collection from the proposed RFID based channel increases as the demand increases. For the proposed RFID based system, reader sensing power is found more significant compared to the cost of readers. A numerical example is given with three different cases and impacts of different input parameters are studied to draw important results. Managerial insights are given to assist the designer of the system in some critical decisions.