Three-Level Closed Loop Supply Chain Coordination Mechanism with Patent License Fee Considered

Abstract

Abstract: A three-level patent licensed closed loop supply chain system composed of one original manufacturer, two recover manufacturers, and two retailers is addressed in this paper. For such a supply chain system, based on the game theory, the pricing problem is studied. Result shows that the increase of saving cost results in the increase of unit patent license fee, while the increase of reproduction rate results in the decrease of unit patent license fee. Also, in sense of operation efficiency, centralized decision making is better than decentralized decision making. Finally, a revenue and expense sharing contract (RAESC) is proposed to coordinate the closed-loop supply chain.

Key words: patent license, closed loop supply chain, coordination mechanism, game theory
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Gao Peng, Xie Yin-cheng, Gao Jie. Three-Level Closed Loop Supply Chain Coordination Mechanism with Patent License Fee Considered[J]. Industrial Engineering Journal , 2013, 16(4): 14-19.

References

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