Retailer Takeback Closedloop Supply Chain Coordination under Competitive Environment
Li Ming-fang, Xue Jing-mei, Jiang Jia, Han Na
2013, 16 (6):
101-105.
Under the fierce competitive market, manufacturers and retailers cannot do pricing freely. Therefore, wholesale price and sale price are no longer the enterprises′ decision variables. In this paper, a closedloop supply chain with retailers′ response for the products recycling is addressed. For such a supply chain, the optimization problem for product recycling decision is studied. Result shows that, for a centralized supply chain, an optimal remanufacturing rate can be reached. The optimal remanufacturing rate is positively correlated with product′s distribution margins and margin requirements, while it is negatively correlated with market capacity and cost factor. If income function of curvature is bigger than cost function of curvature, the optimal remanufacturing rate is positively correlated with the cost saving, otherwise, the optimal remanufacturing rate is negatively correlated with the cost saving. When the equilibrium remanufacturing rate in decentralized supply chain is lower than the optimal value, the system is uncoordinated. By introducing a target incentive contract, the supply chain can achieve the coordination and Pareto improvement simultaneously.
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