A Study of Revenue-and-expense Sharing Contract of Closed-loop Supply Chain Coordination Based on Heterogeneous Demands

doi:10.3969/j.issn.1007-7375.e17-3203

Abstract

Abstract: In order to study differential pricing strategy and coordination mechanism of the closed-loop supply chain under the heterogeneous demands while considering the customers' different acceptance of new products, remanufactured products and second-hand products, a differential pricing model of closed-loop supply chain is established. Then, the influence of consumer acceptance on centralized and decentralized optimal decision and optimal profit is discussed. The result shows that the consumer acceptance of remanufactured products has a negative impact on new products. However, the consumer acceptance of second-hand products exerts no direct influence on new products. And the decentralized decisions cause the loss of system profits. To make up for such efficiency loss, a revenue-and-expense sharing contract is proposed to coordinate the decentralized closed-loop supply chain. Finally, an example is used to demonstrate the effectiveness of the proposed coordination mechanism for the closed-loop supply chain.

Key words: remanufactured product, second-hand product, consumer acceptance, revenue-and-expense sharing contract

CLC Number:

F224
F252

DU Maokang, LIN Panpan, WANG Qiang. A Study of Revenue-and-expense Sharing Contract of Closed-loop Supply Chain Coordination Based on Heterogeneous Demands[J]. Industrial Engineering Journal , 2018, 21(1): 30-35,66.

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