Reverse Channel Choice in a Closed-loop Supply Chain with Extended Warranty Service

doi:10.3969/j.issn.1007-7375.2019.02.006

Abstract

Abstract: To solve the problem of reverse channel choice in a closed-loop supply chain (CLSC) with extended warranty service, six decentralized CLSC models are developed by combining three typical reverse channel formats (i.e., manufacturer collecting, retailer collecting, and third-party collecting) and two kinds of extended warranty providers (i.e., the manufacturer or the retailer). For each scenario, the optimal decision on reverse channel choice and its impact on CLSC decisions are examined based on game theory. The results show that whether the manufacturer or the retailer offers the extended warranty, it is best for the retailer to collect used products. In this context, the manufacturer, the retailer and the whole CLSC all can get their maximum profits and the product return rate is the highest.

Key words: closed-loop supply chain(CLSC), extended warranty, channel structure, remanufacturing

CLC Number:

F252

DAN Ying, DAI Ying, MA Zujun. Reverse Channel Choice in a Closed-loop Supply Chain with Extended Warranty Service[J]. Industrial Engineering Journal , 2019, 22(2): 42-48.

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