Closed-loop Supply Chain with Different Quality of Manufacturing and Remanufacturing Products and a Stochastic Return Rate by Game Theory Approach

Document Type : Research Paper

Authors

1 M. A. in Industrial Engineering, Faculty of Engineering, Al-Zahra University, Tehran, Iran

2 Associate Professor, Department of Industrial Engineering, Faculty of Engineering, Al-Zahra University, Tehran, Iran

Abstract

Nowadays, due to environmental issues, government laws and economic interests, attention to product collection and reproduction has increased. In this thesis, a two-level closed loop supply chain is considered, which includes a manufacturer and a retailer, and the demand is met through manufactured and remanufactured products. The quality of second-hand products that are remanufactured is not as same as the quality of new products, it is random and follows the distribution. Also, the rate of return of goods is considered random and follows a uniform distribution. The manufacturer determines the wholesale price of the remanufactured and manufactured products in order to maximize their profit, and the retailer determines the retail price of the manufactured and remanufactured products and the length of the cycle in order to maximize the profit. The interaction between the retailer and the manufacturer has been modeled by using the game theory approach in the static and Stackelberg (either the leader manufacturer or the leader retailer) games. According to studies, the profit of the supply chain (the manufacturer and the retailer) in Stackelberg game is more than static game.

Keywords

References

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یوسفی، خجسته (1397). بررسی رقابت بین دو محصول نو و بازتولید در یک زنجیره‌تأمین حلقه بسته با درنظر گرفتن کمبود با رویکرد نظریه بازی‌ها، دانشکده فنی مهندسی، الزهرا.

Journal of Industrial Engineering Research in Production Systems
Volume 10, Issue 20
January 0
Pages 49-61

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