A Research on the Pricing Strategy of Closed-Loop Supply Chain under Two Stages

doi:10.3969/j.issn.1007-7375.e17-4160

Abstract

Abstract: With an enhanced awareness of concepts such as environmental protection and sustainable development, recycling has aroused the attention of enterprises and scholars. Because of the difference between the acceptance of re-manufactured products and the popularity of new products, these two products' pricing processes are different. It is assumed that the manufacturer only produces new products in the first stage, and both new products and re-manufactured products in the second stage. Under this assumption, the pricing decisions about system of supply chain and reverse supply chain between the manufacturer and the retailer are studied under the different market situations. The results show that, in the second stage, sale prices of new and re-manufactured products are both lower than those of only new products. When the former is chosen, it will obtain more benefits. Furthermore, the retailer will do better when more money is paid for waste products. And the manufacturer's wholesale price is determined by the cost of new products, recycled products and recycling prices. The study further shows that the overall supply chain will obtain maximal profits when the retailer dominates the market, and the overall supply chain will obtain minimum profits when manufacturer dominates the market. However, when the authority between the two is not obvious, the overall supply chain profits will be in the middle.

Key words: closed-loop supply chain, collection, re-manufacturing, reverse logistics, pricing decisions

CLC Number:

F062

LIANG Xiaohao, HUANG Zuqing, MENG Lijun, YANG Yuxiang. A Research on the Pricing Strategy of Closed-Loop Supply Chain under Two Stages[J]. Industrial Engineering Journal , 2017, 20(6): 47-55.

References

[1] GUIDE V D R, WASSENHOVE L N. Business aspects of closed-loop supply chains [M]. Pittsburgh:Carnegie Mellon University Press, 2003.
[2] 达庆利, 黄祖庆, 张钦. 逆向物流系统结构研究的现状及展望[J]. 中国管理科学, 2004, 12(1): 131-138.
DA Qingli, HUANG Zuqing, ZHANG Qin. Current and future studies on structure of the reverse logistics system: A review[J]. Chinese Journal of Management Science, 2004, 12(1): 131-138.
[3] SAVASKAN R C, BHATTACHARYA S, WASSENHOVE L N. Closed-loop supply chain models with product re-manufacturing [J]. Management Science, 2004, 50(2): 239-252.
[4] 黄祖庆, 达庆利. 直线型再制造供应链结构的效率分析研究[J]. 管理科学学报, 2006, 9(4): 51-57.
HUANG Zuqing, DA Qingli. Study on efficiency of serial supply chains with remanufacture[J]. Journal of Management Sciences in China, 2006, 9(4): 51-57.
[5] 黄祖庆, 易荣华, 达庆利. 第三方负责回收的再制造闭环供应链决策结构的效率分析[J]. 中国管理科学, 2008, 16(3): 73-77.
HUANG Zuqing, YI Ronghua, DA Qingli. Study on the efficiency of the closed-loop supply chains with remanufacture based on third-party collecting[J]. Chinese Journal of Management Science, 2008, 16(3): 73-77.
[6] 孙嘉轶, 滕春贤, 陈兆波. 基于回收价格与销售数量的再制造闭环供应链渠道选择模型[J]. 系统工程理论与实践, 2013, 33(12): 3079-3085.
SUN Jiayi, TENG Chunxian, CHEN Zhaobo. Channel selection model of remanufacturing closed-loop supply chain based on buy-back price and sale quantity[J]. System Engineering Theory and Practice, 2013, 33(12): 3079-3085.
[7] CHUANG C H, WANG C X, ZHAO Y. Closed-loop supply chain models for a high-tech product under alternative reverse channel and collection cost structures [J]. International Journal of Production Economics, 2014, 156(5): 108-123.
[8] ZIKOPOULOS C, TAGARAS G. Reverse supply chains: Effects of collection network and returns classification on profitability[J]. European Journal of Operational Research, 2015, 246(2): 435-449.
[9] HEESE H S, CATTANI K, FERRER G, et al. Competitive advantage through take-back of used products [J]. European Journal of Operational Research, 2005, 164 (1): 143-157.
[10] FERGUSON M, TOKTAY L B. The effect of competition on recovery strategies [J]. Production and Operations Management, 2006, 15 (3): 351-368.
[11] 葛静燕, 黄培清. 基于博弈论的闭环供应链定价策略分析[J]. 系统工程学报, 2008, 23(1): 111-115.
GE Jingyan, HUANG Peiqing. Price decision analysis for closed-loop supply chain based on game theory[J]. Journal of Systems Engineering, 2008, 23(1): 111-115.
[12] 孙浩, 达庆利. 基于产品差异的再制造闭环供应链定价与协调研究[J]. 管理学报, 2010, 7(5): 733-738.
SUN Hao, DA Qingli. Pricing and coordination of remanufacturing closed-loop supply chain based on product differentiation[J]. Chinese Journal of Management, 2010, 7(5): 733-738.
[13] 包晓英, 唐志英, 唐小我. 基于回收再制造的闭环供应链差异定价策略及协调[J]. 系统管理学报, 2010, 19(5): 546-552.
BAO Xiaoying, TANG Zhiying, TANG Xiaowo. Coordination and differential price strategy of closed-loop supply chain with product remanufacturing[J]. Journal of Systems and Management, 2010, 19(5): 546-552.
[14] 易余胤, 袁江. 渠道冲突环境下的闭环供应链协调定价模型[J]. 管理科学学报, 2012, 15(1): 54-65.
YI Yuyin, YUAN Jiang. Pricing coordination of closed-loop supply chain in channel conflicts environment[J]. Journal of Management Sciences in China, 2012, 15(1): 54-65.
[15] 颜荣芳, 程永宏, 王彩霞. 再制造闭环供应链最优差别定价模型[J]. 中国管理科学, 2013, 21(1): 90-97.
YAN Rongfang, CHENG Yonghong, WANG Caixia. Strategy analysis on differential pricing in closed-loop supply chain with remanufacturing[J]. Chinese Journal of Management Science, 2013, 21(1): 90-97.
[16] 刘家国, 周学龙, 赵金楼. 基于产品质量差异的闭环供应链定价策略与协调研究[J]. 中国管理科学, 2013, 21(S2): 426-431.
LIU Jiaguo, ZHOU Xuelong, ZHAO Jinlou. Study on price decision and coordination of closed-loop supply chain Based on quality difference of product[J]. Chinese Journal of Management Science, 2013, 21(S2): 426-431.
[17] GIRI B C, CHAKRABORTY A, MAITI T. Pricing and return product collection decisions in a closed-loop supply chain with dual-channel in both forward and reverse logistics[J]. Journal of Manufacturing Systems, 2017, 42: 104-123.
[18] LIANG Y, POKHAREL S, LIM G H. Pricing used products for remanufacturing [J]. European Journal of Operational Research, 2009, 193(2): 390-395.
[19] 张建军, 霍佳震, 张艳霞. 基于价格博弈的闭环供应链协调策略设计[J]. 管理工程学报, 2009, 23(2): 119-124.
ZHANG Jianjun, HUO Jiazhen, ZHANG Yanxia. Coordination strategy designing in closed-loop supply chain based on pricing game[J]. Journal of Industrial Engineering Management, 2009, 23(2): 119-124.
[20] 谢家平, 王爽. 偏好市场下制造/ 再制造系统最优生产决策[J]. 管理科学学报, 2011, 14(3): 24-33.
XIE Jiaping, WANG Shuang. Optimal production decision model of the manufacturing/re-manufacturing system in the heterogeneous[J]. Journal of Management Sciences in China, 2011, 14(3): 24-33.
[21] SHAKOURLOO A, KAZEMI A, JAVAD MOM. A new model for more effective supplier selection and remanufacturing process in a closed-loop supply chain[J]. Applied Mathematical Modelling, 2016, 40(23): 9914-9931.
[22] GIUTINI R, GAUDETTE K. The economics of remanufacturing under limited component durability and finite product life cycles [J]. Management Science, 2007, 53(1): 88-100.
[23] 张维迎. 博弈论与信息经济学[M]. 上海: 上海人民出版社, 1996.