The pricing and collection decisions in the closed-loop supply chain with dual competitive recycling channels under different channel leadership

Document Type : Research Paper

Authors

1 Systems Engineering, Iran University of Science & Technology

2 school of IE, IUST

Abstract

In the twenty-first century especially in the recent decade, due to concerns about the environment and social responsibility, the Closed-loop supply chain has attracted more attention. In this paper, a closed loop supply chain consisting of a manufacturer, a retailer, and a third-party collector is considered. The manufacturer also produces new products from raw materials and simultaneously remanufacturing the used products. In the direct channel, the manufacturer introduces new products and remanufactured products to the market through a retailer, and in the reverse channel, the retailer and third-party collector competitively collect the products used. To analyze the optimal pricing and collecting decisions under different channel leadership, Four different scenarios based on game theory have been developed - a centralized model and three decentralized models based on the Stackelberg game including Manufacturer-led, Retailer-led, and Third Party collector-led. Then, using numerical analysis, we compared and analyzed the optimal decisions in different scenarios and examined the effect of competition intensity between the dual recycling channel of the retailer and third-party collector on decision variables, profit of members and total profit. We concluded that the profit of chain Supply in the centralized scenario is larger than decentralized models, In addition it can be concluded that the retailer-led decentralized model is often the most effective scenario in the CLSC.

Keywords

References

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Journal of Industrial Engineering Research in Production Systems
Volume 7, Issue 15
March 2020
Pages 377-393

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