Pricing strategy of closed-loop supply chain under disruptions

The aim of this paper is to understand how disruptions effect on closed-loop supply chain, and how to achieve the coordination of closed-loop supply chain under disruptions situation for the whole supply chain system. Design/methodology/approach- This paper analyzed the effect caused by the disruptions of the closed-loop supply chain from both supply and demand , and applied the established margin profits sharing contract to achieve coordination under the disruptions. Findings- From both supply side and demand side, it drew how the disruptions affect the closed-loop supply chain. When the disruptions have less effect on the forward and reverse cost of closed-loop supply chain, the impact of the closed-loop supply chain is controllable; when the disruptions have lager effect on the forward and reverse cost of closed-loop supply chain, the impact of the closed-loop supply chain is uncontrollable. Research limitations/implications- In this paper, the contract costs are ignored for zero. While in actual situation, to maintain the efficient implementation of this contract must spend considerable cost. Sometimes the cost may be too high to become hinder between manufacturers and retailers. This paper also does not make in-depth study on this issue, so it will be further study in the future. Originality/value- This paper also designed a set of differential profit sharing contract based on revenue sharing contract mechanism. The contract is easy to be managed, easy to be operated, making the closed-loop supply chain system can achieve coordination whether in steady state or under disruptions.

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Analysis of the impact of COVID-19 on the coupling of the material flow and capital flow in a closed-loop supply chain

Advances in Production Engineering & Management ◽

10.14743/apem2021.1.381 ◽

2021 ◽

Vol 16 (1) ◽

pp. 5-22

Author(s):

W. Duan ◽

H. Ma ◽

D.S. Xu

Keyword(s):

Supply Chain ◽

Material Flow ◽

Closed Loop ◽

Capital Flow ◽

Simulation Software ◽

Dynamics Simulation ◽

Supply Chain System ◽

Closed Loop Supply Chain ◽

Chain System ◽

The Impact

The complex and changeable external social and economic environment has a significant impact on the sustainable development of the closed-loop supply chain. In particular, the occurrence of uncertain emergencies increases the risk of interruption of the closed-loop supply chain, making it insufficient to analyze its complex changes from the perspective of material flow alone. Based on this analysis, the paper constructs a closed-loop supply chain material flow and capital flow coupling system composed of manufacturers, sellers and recyclers to explore the impact of material flow sudden interruption on the closed-loop supply chain system when an uncertain emergency occurs. In this paper, based on the closed-loop supply chain system coupled with logistics and capital flow, a system dynamics simulation model was established by using Vensim simulation software to analyze the impact of COVID-19 epidemic on manufacturers, sellers and recyclers under five scenarios. The results show that when COVID-19 outbreaks occur, the material flow of each main enterprise in the closed-loop supply chain is more easily influenced than the capital flow. At the same time, it can be found that the recyclers in the main enterprises of the closed-loop supply chain are more easily influenced by the material flow. The model constructed in this paper has applicability and can be used for related studies of closed-loop supply chain under other emergencies, but the scene design should be carried out according to the characteristics of emergencies themselves.

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

Sustainability ◽

10.3390/su11154237 ◽

2019 ◽

Vol 11 (15) ◽

pp. 4237 ◽

Cited By ~ 3

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.

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

Volume 1A: 35th Computers and Information in Engineering Conference ◽

10.1115/detc2015-46371 ◽

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.

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

International Journal of Procurement Management ◽

10.1504/ijpm.2018.10014395 ◽

2018 ◽

Vol 11 (5) ◽

pp. 551 ◽

Cited By ~ 1

Author(s):

Nughthoh Arfawi Kurdhi ◽

Wakhid Ahmad Jauhari ◽

Oktiviandri Hendaryani

Keyword(s):

Supply Chain ◽

Closed Loop ◽

Supply Chain System ◽

Closed Loop Supply Chain ◽

Chain System ◽

Inventory Decisions

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Inventory decision-making models for a closed-loop supply chain system with different decision-making structures

International Journal of Production Research ◽

10.1080/00207543.2014.946160 ◽

2014 ◽

Vol 53 (1) ◽

pp. 183-219 ◽

Cited By ~ 15

Author(s):

Kai Fu Yuan ◽

Shi Hua Ma ◽

Bo He ◽

Yang Gao

Keyword(s):

Decision Making ◽

Supply Chain ◽

Closed Loop ◽

Supply Chain System ◽

Closed Loop Supply Chain ◽

Chain System ◽

Decision Making Models ◽

Inventory Decision

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

Sustainability ◽

10.3390/su10124738 ◽

2018 ◽

Vol 10 (12) ◽

pp. 4738 ◽

Cited By ~ 4

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.

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