Risk-Averse Pricing Decisions Related to Recyclables’ Quality in a Closed-Loop Supply Chain

In a closed-loop supply chain, uncertainty of recyclables’ quality is a major factor of supply chain members’ decision-making. Because of this uncertainty, manufacturers must pay varying manufacturing costs for remanufacturing recyclables. Our study assumed that manufacturers are risk-averse towards uncertainty in manufacturing costs and constructed a retailer recycling model and a third-party recycling model to investigate pricing decisions in a decentralized closed-loop supply chain under uncertainty about recyclables’ quality. Our findings can be summarized as follows: (1) the higher the degree of consumer preference for remanufactured products, the higher the wholesale and retail prices of remanufactured products and the higher the recycling price of used products; (2) the two recycling models showed a U-shaped relationship between supply chain revenue and the degree of consumer preference for remanufactured products, and this supply chain revenue is related to the consumer preference coefficient; (3) there is a U-shaped relationship between the retailer’s expected revenue and the degree of consumer preference for remanufactured products in the R mode and an M-shaped relationship between them in the 3P mode; (4) in both recycling modes, the manufacturer’s risk aversion is inversely proportional to supply chain revenue, and supply chain revenue in the R mode is higher than that in the 3P mode; and (5) the higher the uncertainty of recyclables’ quality, the lower the recycling price of used products and the lower the manufacturer’s enthusiasm for recycling or for used products.

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Pricing and Logistics Service Decisions in Platform-Led Electronic Closed-Loop Supply Chain with Remanufacturing

Sustainability ◽

10.3390/su132011357 ◽

2021 ◽

Vol 13 (20) ◽

pp. 11357

Author(s):

Kai Liu ◽

Chunfa Li ◽

Runde Gu

Keyword(s):

Supply Chain ◽

Closed Loop ◽

Service Level ◽

Optimal Choice ◽

Third Party ◽

Optimal Pricing ◽

Closed Loop Supply Chain ◽

Pricing Decisions ◽

Logistics Service ◽

The Third

With the continuous development of e-commerce, it has become normal for the manufacturer to sell products and to collect used products through e-commerce platforms (platform for short). We consider an electronic closed-loop supply chain (E-CLSC) where we composed a manufacturer with remanufacturing capability and a platform that can provide logistics services. The purpose of this paper is to address whether the manufacturer should directly collect used products from the consumer under the platform. Specifically, we have developed four game models, namely model N (no collection), model M (the manufacturer collects), model E (the platform collects), and model T (the third-party collects) and derived the optimal pricing decisions, logistics service level, and collection rate for E-CLSC members. We found that remanufacturing used products is conducive to increasing the profits of the manufacturer and the platform as well as to increasing the utility of the consumer. Under the same conditions, for the manufacturer, the platform, and the consumer, the optimal choice is that the manufacturer directly collects the used products from the consumer. If the manufacturer is unable to establish an effective collection channel, he should consider outsourcing to a contractor and should consider the platform to be under the same conditions. Numerical examples are also given to verify the proposed results.

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Research on Closed-Loop Supply Chain with the Third Party Recycler Based on Consumer Preference

Journal of Service Science and Management ◽

10.4236/jssm.2016.92021 ◽

2016 ◽

Vol 09 (02) ◽

pp. 175-181 ◽

Cited By ~ 2

Author(s):

Jiangbo Zheng ◽

Juan Wu

Keyword(s):

Supply Chain ◽

Closed Loop ◽

Consumer Preference ◽

Third Party ◽

Closed Loop Supply Chain ◽

The Third ◽

The Third Party

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Research on recycling channel selection of closed-loop supply chain considering consumer preference and fairness concern

MATEC Web of Conferences ◽

10.1051/matecconf/202133609001 ◽

2021 ◽

Vol 336 ◽

pp. 09001

Author(s):

Jiayi Sun ◽

Wei Chen ◽

Shuangfei Yang ◽

Yingluo Yan

Keyword(s):

Supply Chain ◽

Closed Loop ◽

Consumer Preference ◽

Channel Selection ◽

Selection Strategy ◽

Closed Loop Supply Chain ◽

Pricing Decisions ◽

Fairness Concern ◽

Recycle Rate ◽

Selection Of

This paper studied the influence of consumer preference and fairness concern on recycling and pricing decisions of closed-loop supply chain (CLSC) under different recycling channels. The results show that consumers' fairness concern cannot affect the manufacturer's decisions and profit; consumers' fairness concern is benefit to consumers, and it can improve the recycle rate. The channel selection strategy is depend on consumers' fairness attitude.

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Differential Pricing of Closed-loop Supply Chain Based on Recycling Competition between Retailer and Third-party Recycler

Proceedings of the 2020 2nd International Conference on Management Science and Industrial Engineering ◽

10.1145/3396743.3396759 ◽

2020 ◽

Author(s):

Yan Zou ◽

Sheng Liu

Keyword(s):

Supply Chain ◽

Closed Loop ◽

Third Party ◽

Closed Loop Supply Chain ◽

Differential Pricing

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Product Resynthesis as a Reverse Logistics Strategy for an Optimal Closed-Loop Supply Chain

Volume 4: 18th Design for Manufacturing and the Life Cycle Conference; 2013 ASME/IEEE International Conference on Mechatronic and Embedded Systems and Applications ◽

10.1115/detc2013-12587 ◽

2013 ◽

Author(s):

Chinmay Sane ◽

Conrad S. Tucker

Keyword(s):

Supply Chain ◽

Reverse Logistics ◽

Closed Loop ◽

Manufacturing Firms ◽

Third Party ◽

High Tech ◽

Closed Loop Supply Chain ◽

Supply Chain Strategy ◽

Logistics Strategy ◽

Original Product

With continued emphasis on sustainability-driven design, reverse logistics is emerging as a vital competitive supply chain strategy for many of the global high-tech manufacturing firms. Various original equipment manufacturers (OEMs) and multi-product manufacturing firms are enhancing their reverse logistics strategies in order to establish an optimal closed-loop supply chain through which they can introduce refurbished variants of their products back into the market. While a refurbished product strategy helps to mitigate environmental impact challenges as well as provide additional economic benefits, it is limited to an existing product market, possibly a subset of the existing market, and fails to commercialize/target new markets. In addition to refurbishing, the alternatives available for utilizing End-Of-Life (EOL) products are currently restricted to recycling and permanent disposal. In this work, the authors propose employing a new EOL option called “resynthesis” that utilizes existing waste from EOL products in a novel way. This is achieved through the synthesis of assemblies/subassemblies across multiple domains. The “newly” synthesized product can then be incorporated into the dynamics of a closed-loop supply chain. The proposed methodology enables OEMs to not only offer refurbished products as part of their reverse logistics strategy, but also provide them with resynthesized product concepts that can be used to expand to new/emerging markets. The proposed methodology provides a general framework that includes OEMs (manufacturers of the original product), retailers (distributors of the original product and collectors of the EOL products) and third-party firms (managers of the EOL products) as part of a closed-loop supply chain strategy. The proposed methodology is compared with the existing methodologies in the literature wherein a third-party supplies the OEM only with refurbished products and supplies products unsuitable for refurbishing to another firm(s) for recycling/disposal. A case study involving a multi-product electronics manufacturer is presented to demonstrate the feasibility of the proposed methodology.

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Controlling Waste and Carbon Emission for a Sustainable Closed-Loop Supply Chain Management under a Cap-and-Trade Strategy

Mathematics ◽

10.3390/math8040466 ◽

2020 ◽

Vol 8 (4) ◽

pp. 466 ◽

Cited By ~ 4

Author(s):

Mowmita Mishra ◽

Soumya Kanti Hota ◽

Santanu Kumar Ghosh ◽

Biswajit Sarkar

Keyword(s):

Supply Chain ◽

Supply Chain Management ◽

End Of Life ◽

Carbon Emission ◽

Closed Loop ◽

Emission Trading ◽

Third Party ◽

Closed Loop Supply Chain ◽

Chain Management ◽

Carbon Emission Trading

Considering the increasing number of end-of-life goods in the context of improving the ambience and health of a population and their destructive impacts, recycling strategies are important for industries and organizations. In this article, a closed-loop supply chain management containing a single manufacturer, a single retailer, and a third party is introduced in which the manufacturer first propagates newly finished goods and then dispatches some of the finished goods to the retailer considering a single-setup multi-delivery policy. Due to shipping, carbon emission is taken into account as well as a carbon emission trading mechanism to curb the amount of carbon emissions by the retailer. For recycling through collection, inspection, remanufacturing, and landfill, the third party collects the end-of-life goods from its customers and ships perfect products to the manufacturer after a two-stage inspection. In this model, major sources of emissions such as shipping, replenishment orders, and inventory have been taken care of. The minimizing of the total cost relating to the container capacity, shipment numbers, and replenishment cycle length is the main objective of the closed-loop supply chain management for making the system more profitable. Expository numerical explorations, analysis, and graphic representations are conferred to elucidate this model, and it is observed that this model saves some percentage of the cost compared to the existing literature.

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