scholarly journals Pricing-Decision and Coordination Contract considering Product Design and Quality of Recovery Product in a Closed-Loop Supply Chain

2015 ◽  
Vol 2015 ◽  
pp. 1-14 ◽  
Author(s):  
Qingming Zou ◽  
Guangyu Ye
Keyword(s):  
Supply Chain ◽  
Closed Loop ◽  
Wholesale Price ◽  
Retail Price ◽  
Recycling Rate ◽  
Supply Chain System ◽  
Closed Loop Supply Chain ◽  
Chain System ◽  
Total Profit

In a closed-loop supply chain consisting of a manufacturer and a retailer, this paper studies the pricing strategies and coordination mechanism of supply chain when the remanufacturing cost is random caused by the proportion of reusability parts in design stage and quality condition of recycling product. The results show that the wholesale price and retail price are negative correlation, while the recycling rate and total profit of supply chain system are positive correlation with the proportion of reusability component designed in new product and quality of recycling product. Moreover, there are conclusions that the wholesale price and retail price are lower while the recycling rate and total profit of supply chain system are higher with centralized decision. Then, in order to coordinate the closed-loop supply chain, this paper develops a revenue-sharing contract, in which the revenue share parameter is determined based on absolute deviation approach. The theoretical results are illustrated by a numerical example.

scholarly journals Warranty Period Decision and Coordination in Closed-Loop Supply Chains Considering Remanufacturing and Consumer Behavior

2019 ◽  
Vol 11 (15) ◽  
pp. 4237 ◽  
Author(s):  
Xiaodong Zhu ◽  
Lingfei Yu ◽  
Wei Li
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Supply Chains ◽  
Closed Loop ◽  
Supply Chain System ◽  
Closed Loop Supply Chain ◽  
Chain System ◽  
Warranty Period ◽  
Closed Loop Supply Chains ◽  
Decision Making Model

The closed-loop supply chain management model is an effective way to promote sustainable economic development and environmental protection. Increasing the sales volume of remanufactured products to stimulate green growth is a key issue in the development of closed-loop supply chains. By designing an effective warranty strategy, customer’s perceived value can be enhanced and market demand can be stimulated. This study cuts through the warranty period of closed-loop supply chain products. Based on the perspective of consumer behavior, game theory is used to construct the optimal decision-making model for closed-loop supply chains. The optimal warranty decision making for new products and remanufactured products under centralized and decentralized decision-making models is discussed. Further, the impact of the closed-loop supply chain system with warranty services and the design of contract coordination is also shown. We show that consumer preference has a positive impact on the sales of remanufactured products and the profits of enterprises; with the extension of the new product and remanufacturing warranty period, the profit of the supply chain system first increases and then decreases, and the value is maximized at the extreme point in the manufacturer-led decision-making model. Furthermore, the leader gains higher profits with bargaining power, but the profit of the supply chain system under decentralized decision model is less than that of the centralized decision model, reflecting the double marginalization effect. The revenue sharing contract and the two-charge contract designed in this study coordinate the closed-loop supply chain system with warranty services, so that the member companies in the supply chain can achieve Pareto improvement.

Containerization Method for Logistic Cost Reduction Based on Closed-Loop Supply Chain Model

2015 ◽  
Author(s):  
Xinyan Ou ◽  
Qing Chang ◽  
Guoxian Xiao ◽  
Jorge Arinez
Keyword(s):  
Mathematical Model ◽  
Supply Chain ◽  
System Performance ◽  
Closed Loop ◽  
Cost Savings ◽  
Supply Chain System ◽  
Logistics Cost ◽  
Closed Loop Supply Chain ◽  
Chain System ◽  
Logistic Cost

Logistics cost is an important contributor to the overall cost in a supply chain system. By using collapsible containers, the frequency of return freight can be reduced and the return of containers can be optimized, leading to potential logistic cost savings. However, the dynamic behavior of container flows due to demand, inventory, storage, and repair requirements make it difficult to accurately analyze container system performance. An accurate estimation of this collapsible container usage impact is of great importance for decision-making. This paper describes the development of a mathematical model of the container dynamic flow system by using the collapsible containers. A continuous time, discrete space Markov process is used for stochastic scenario. The model determines the total cost savings, based on the collapsible rate, the number of collapsible containers, the performance of the factory and the supplier and the transportation environment. The presented mathematical formulation enables the evaluation of the system performance. A case study of collapsible container supply chain system demonstrates the advantages of this methodology. In addition, a simulation model of this stochastic system is presented to verify the mathematical model. Simulation tests are conducted to demonstrate the potential logistics cost savings in the closed-loop supply chain system.

scholarly journals Warranty Decision Model and Remanufacturing Coordination Mechanism in Closed-Loop Supply Chain: View from a Consumer Behavior Perspective

2018 ◽  
Vol 10 (12) ◽  
pp. 4738 ◽  
Author(s):  
Xiaodong Zhu ◽  
Lingfei Yu ◽  
Ji Zhang ◽  
Chenliang Li ◽  
Yizhao Zhao
Keyword(s):  
Supply Chain ◽  
Decision Model ◽  
Closed Loop ◽  
Stackelberg Game ◽  
Coordination Mechanism ◽  
Market Demand ◽  
Supply Chain System ◽  
Closed Loop Supply Chain ◽  
Chain System ◽  
Warranty Service

The remanufacturing warranty strategy has become an effective mechanism for reducing consumer risk and stimulating market demand in closed-loop supply chain management. Based on the characteristics of consumers’ behavior of purchase decisions, this paper studies the warranty decision model of remanufacturing closed-loop supply chain under the Stackelberg game model. The present study discussed and compared the decision variables, including remanufacturing product pricing, extended warranty service pricing, warranty period and supply chain system profit. The research shows that consumers’ decision-making significantly affirms the dual marginalization effect of the supply chain system while significantly affecting the supply chain warranty decision; the improved revenue sharing contract and the two charge contracts respectively coordinates the manufacturer-led and retail-oriented closed-loop supply chain system, which effectively implements the Pareto improvement of the closed-loop supply chain system with warranty services. In the present study, the model is verified and analyzed by numerical simulation.

Inventory decisions in a closed-loop supply chain system with learning and rework

2018 ◽  
Vol 11 (5) ◽  
pp. 551 ◽  
Author(s):  
Wakhid Ahmad Jauhari ◽  
Oktiviandri Hendaryani ◽  
Nughthoh Arfawi Kurdhi
Keyword(s):  
Supply Chain ◽  
Closed Loop ◽  
Supply Chain System ◽  
Closed Loop Supply Chain ◽  
Chain System ◽  
Inventory Decisions

Lot sizing decisions in a closed-loop supply chain system with remanufacturing

2017 ◽  
Vol 10 (3) ◽  
pp. 381
Author(s):  
Wakhid Ahmad Jauhari ◽  
Anindya Rachma Dwicahyani ◽  
Nughthoh Arfawi Kurdhi
Keyword(s):  
Supply Chain ◽  
Closed Loop ◽  
Lot Sizing ◽  
Supply Chain System ◽  
Closed Loop Supply Chain ◽  
Chain System

scholarly journals An Efficient Approach for Coordination of Dual-Channel Closed-Loop Supply Chain Management

2018 ◽  
Vol 10 (10) ◽  
pp. 3433 ◽  
Author(s):  
Muhammad Arshad ◽  
Qazi Khalid ◽  
Jaime Lloret ◽  
Antonio Leon
Keyword(s):  
Supply Chain ◽  
Closed Loop ◽  
Wholesale Price ◽  
Third Party ◽  
Equilibrium Strategy ◽  
Recycling Rate ◽  
Closed Loop Supply Chain ◽  
Dual Channel ◽  
Fairness Concern ◽  
The Impact

In this paper, a closed-loop supply chain composed of dual-channel retailers and manufacturers, a dynamic game model under the direct recovery, and an entrusted third-party recycling mode of the manufacturer is constructed. The impact of horizontal fairness concern behavior is introduced on the pricing strategies and utility of decision makers under different recycling models. The equilibrium strategy at fair neutrality is used as a reference to compare offline retails sales. Research shows that in the closed-loop supply chain of dual-channel sales, whether in the case of fair neutrality or horizontal fairness concerns, the manufacturer’s direct recycling model is superior to the entrusted third-party recycling, and the third-party recycling model is transferred by the manufacturer. In the direct recycling model, the horizontal fairness concern of offline retailers makes two retailers in the positive supply chain compete to lower the retail price in order to increase market share. Manufacturers will lower the wholesale price to encourage competition, and the price will be the horizontal fairness concern coefficient, which is negatively correlated. In the reverse supply chain, manufacturers increase the recycling rate of used products. This pricing strategy increases the utility of manufacturers and the entire supply chain system compared to fair neutral conditions, while two retailers receive diminished returns. Manufacturers, as channel managers to encourage retailers to compete for price cuts, can be coordinated through a three-way revenue sharing contract to achieve Pareto optimality.

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