Cooperation Analysis of a Closed-loop Supply Chain Based on Remanufacturing

Abstract

Abstract: A closed-loop supply chain composed of one manufacturer, one dealer, and one recycler is considered. Based on differentiate-pricing strategy, Stackelberg game theory is used to analyze the effect of cooperation level on pricing, sales, and product returning rate. Results reveal that the manufacturer has more profit gain through the building of partnership with the dealer and recycler. And, along with the increase of cooperation level, the profits of the whole supply chain increase. At the same time, the cooperative relationship of the manufacturer with the dealer and the recycler can result in mutual interaction in building sale and product return channel. Based on the analysis, suggestions are made for coordination improvement by profit redistribution.

Key words: closed-loop supply chain, Stackelberg game, cooperative game, remanufacturing

Si Wen-jing, Ma Jun-hai. Cooperation Analysis of a Closed-loop Supply Chain Based on Remanufacturing[J]. Industrial Engineering Journal , 2013, 16(1): 86-90.

References

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