A Closed-loop Supply Chain Model for Managing Overall Optimization of Eco-efficiency

The focus and scope of environmental care has been extended over the past four decades. More and more attention has been attached to pollution prevention and minimization rather than end-of-pipe pollution control. It is believed that there is an optimized break-even point where more goods and services are created with fewer resources, less waste and pollution. This point is termed eco-efficiency. This paper discusses, firstly, the major challenges of managing eco-efficiency in the context of a supply chain. The challenges in optimization of eco-efficiency are also addressed. The disadvantages of applying traditional supply chain models in managing overall optimization of eco-efficiency are analyzed. A closed-loop supply chain model is proposed. Suggestions on future works are given at the end of this paper. Key words: Eco-efficiency, sustainable supply chain management, closed-loop model 1