A Decision Analysis of Service Terminal Two-Period Closed-loop Supply Chain Considering Substitution Effect

doi:10.3969/j.issn.1007-7375.2022.05.003

Abstract

Abstract: To analyze the influence of substitution effect on the decision-making of service terminal closed-loop supply chain, based on the different responsibility subjects of recycling and remanufacturing, a two-period decision-making model of service terminal closed-loop supply chain was established. Then based on Stackelberg game method, the equilibrium solutions were solved under three modes: the recycler is responsible for recycling and the remanufacturer for remanufacturing; the recycler is responsible for recycling and the manufacturer for remanufacturing; and the manufacturer is responsible for both recycling and remanufacturing, and the variation trends of equilibrium solutions with substitution effect were analyzed. Several results were concluded: 1) when the manufacturer is responsible for recycling and remanufacturing, the sales price of new products is the lowest, the demand of new products is the largest, and the recycling rate is the highest in the first period; 2) when the manufacturer is engaged in remanufacturing, compared with the recycler, it is beneficial to improve the recovery rate, reduce the sales price of remanufactured products and expand the market demand when the manufacturer is responsible for recycling in the second period; 3) The enhancement of substitution effect will reduce the sales price of new products, and increase the demand of remanufactured products, and also improve the recycling rate in the second period.

Key words: substitution effect, service terminal, remanufacturing, closed-loop supply chain, Stackelberg game

CLC Number:

F272

SONG Shouxu, LI Kechen, ZHOU Dan, TIAN Yongting. A Decision Analysis of Service Terminal Two-Period Closed-loop Supply Chain Considering Substitution Effect[J]. Industrial Engineering Journal, 2022, 25(5): 20-28.

References

[1] 谢家平, 李璟, 杨非凡, 等. 新能源汽车闭环供应链的多级契约决策优化[J]. 管理工程学报, 2020, 34(2): 180-193
XIE Jiaping, LI Jing, YANG Feifan, et al. Decision-making and coordination optimized for multi-stage closed-loop supply chain of new energy vehicle[J]. Journal of Industrial Engineering/Engineering Management, 2020, 34(2): 180-193
[2] WANG W, DING J, SUN H. Reward-penalty mechanism for a two-period closed-loop supply chain[J]. Journal of Cleaner Production, 2018, 203: 898-917
[3] 张子健, 郭明波, 陈全朋. EPR下动力电池梯度利用的闭环供应链定价策略与协调机制[J]. 工业工程, 2020, 23(3): 10-18
ZHANG Zijian, GUO Mingbo, CHEN Quanpeng. Closed-loop supply chain pricing strategy and coordination mechanism for electric vehicle batteries gradient utilization under EPR[J]. Industrial Engineering Journal, 2020, 23(3): 10-18
[4] GU X, IEROMONACHOU P, ZHOU L, et al. Developing pricing strategy to optimise total profits in an electric vehicle battery closed loop supply chain[J]. Journal of Cleaner Production, 2018, 203: 376-385
[5] 姚锋敏, 王悦, 滕春贤. 考虑企业社会责任的闭环供应链销售努力与定价决策[J]. 计算机集成制造系统, 2020, 26(3): 839-848
YAO Fengmin, WANG Yue, TENG Chunxian. Sales effort and pricing decisions for closed-loop supply chain with corporate social responsibility[J]. Computer Integrated Manufacturing Systems, 2020, 26(3): 839-848
[6] 徐朗, 汪传旭, 程茜, 等. 考虑回收渠道竞争下闭环供应链的决策与协调[J]. 工业工程与管理, 2018, 23(6): 26-32
XU Lang, WANG Chuanxu, CHENG Qian, et al. Decision and coordination of closed-loop supply chain considering recycling channel competition[J]. Industrial Engineering and Management, 2018, 23(6): 26-32
[7] 王文宾, 丁军飞, 王智慧, 等. 回收责任分担视角下零售商主导闭环供应链的政府奖惩机制研究[J]. 中国管理科学, 2019, 27(7): 127-136
WANG Wenbin, DING Junfei, WANG Zhihui, et al. Reward-penalty mechanism of government for retailer-led closed-loop supply chain under collection responsibility sharing[J]. Chinese Journal of Management Science, 2019, 27(7): 127-136
[8] 黄宗盛, 聂佳佳, 赵映雪. 再制造闭环供应链产品回收合作模式研究[J]. 管理工程学报, 2019, 33(3): 147-152
HUANG Zongsheng, NIE Jiajia, ZHAO Yingxue. The cooperation recovery strategies across the closed-loop supply chain[J]. Journal of Industrial Engineering/Engineering Management, 2019, 33(3): 147-152
[9] WANG N, HE Q, JIANG B. Hybrid closed-loop supply chains with competition in recycling and product markets[J]. International Journal of Production Economics, 2019, 217: 246-258
[10] 杨爱峰, 詹倩颖, 宋明珠, 等. 授权模式下OEM和第三方的生产和回收定价竞争策略[J]. 工业工程, 2019, 22(1): 36-44
YANG Aifeng, ZHAN Qianying, SONG Mingzhu, et al. Producing and recycle pricing competitive strategies of the OEM and the third party under the authorization mode[J]. Industrial Engineering Journal, 2019, 22(1): 36-44
[11] LONG X, SHU T, CHEN S, et al. Strategy analysis of recycling and remanufacturing by remanufacturers in closed-loop supply chain[J]. Sustainability, 2017, 9(10): 1818
[12] MONDAL C, GIRI B C. Pricing and used product collection strategies in a two-period closed-loop supply chain under greening level and effort dependent demand[J]. Journal of Cleaner Production, 2020, 265: 121335.
[13] 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.
[14] 孙浩, 胡劲松, 王磊, 等. 考虑参考效应的两期闭环供应链定价策略与回收模式比较[J]. 计算机集成制造系统, 2016, 22(12): 2875-2887
SUN Hao, HU Jinsong, WANG Lei, et al. Pricing strategies and collection mode of two-period closed-loop supply chain based on price reference effect[J]. Computer Integrated Manufacturing Systems, 2016, 22(12): 2875-2887
[15] GIRI B C, MONDAL C, MAITI T. Optimal product quality and pricing strategy for a two-period closed-loop supply chain with retailer variable markup[J]. RAIRO-Operations Research, 2019, 53(2): 609-626
[16] SAVASKAN R C, BHATTACHARYA S, WASSENHOVE L N. Closed-loop supply chain models with product remanufacturing[J]. Management Science, 2004, 50(2): 239-252
[17] 罗利, 单仁邦, 贺佳思, 等. 考虑动态回收率的两阶段闭环供应链定价策略分析[J]. 工业工程与管理, 2021, 26(2): 90-97
LUO Li, SHAN Renbang, HE Jiasi, et al. Analysis of pricing strategy of two-stage closed-loop supply chain with considering dynamic recycling rate[J]. Industrial Engineering and Management, 2021, 26(2): 90-97