Industrial Engineering Journal ›› 2011, Vol. 14 ›› Issue (1): 28-32.

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Price Coordination of Closed-Loop Supply Chain Involving Third-Party Recycling

  

  1. 1.School of Economics and Management,Southwest Jiaotong University,Chengdu 610031,China;
    2.School of Economics and Management,North University of China,Taiyuan 030051,China
  • Online:2011-02-28 Published:2011-03-22

Abstract: Based on the game theory,the differential price coordination is addressed in this paper for a closed-loop supply chain with third-party collection of used products.First,the decentralized and centralized differential pricing models are established.With them,the optimal pricing strategy and the optimal profit for the members in a closed-loop supply chain are analyzed.Then,it is found that efficiency is lost in the decentralized closed-loop supply chain.Finally,it puts forward a profitsharing coordination contract to coordinate the closedloop supply chain,which makes the profit of the decentralized closed-loop supply chain equal to that of the integrated closed-loop supply chain.

Key words:  closedloop supply chain, third party collection, differential price, profitsharing

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