Closed-loop supply chain for recycling of waste clothing: A comparison of two different modes

Abstract Waste clothing, as a renewable resource, has received increasing attention. Due to high production costs, establishing an efficient supply chain for the recycling of waste clothing is a problem that brand owners need to solve. This study uses mathematical modeling methods to study the closed-loop supply chain models of original equipment manufacturers and cutting making trimming (CMT) in the recycling of waste clothing. By using the Stackelberg game method to analyze the model, the optimal decisions and profits of supply chain members under these two modes were obtained. Based on this, further comparative analysis was conducted between the two modes. Our research finds that brand owners choose to produce and sell recycled clothing not for profit maximization, but based on enhancing brand image or corporate social responsibility considerations. For the brand owner, adopting the CMT model is more advantageous, but this mode requires higher production technology for the recycled fabric supplier.