scholarly journals A Multi-Echelon Network Design in a Dual-Channel Reverse Supply Chain Considering Consumer Preference

2021 ◽  
Vol 18 (9) ◽  
pp. 4760
Author(s):  
Peng Li ◽  
Di Wu
Keyword(s):  
Supply Chain ◽  
Network Design ◽  
Environmental Sustainability ◽  
Rapid Development ◽  
Consumer Preference ◽  
Service Level ◽  
Mixed Integer ◽  
Reverse Supply Chain ◽  
Related Factors ◽  
Dual Channel

The rapid development of e-commerce technologies has encouraged collection centers to adopt online recycling channels in addition to their existing traditional (offline) recycling channels, such the idea of coexisting traditional and online recycling channels evolved a new concept of a dual-channel reverse supply chain (DRSC). The adoption of DRSC will make the system lose stability and fall into the trap of complexity. Further the consumer-related factors, such as consumer preference, service level, have also severely affected the system efficiency of DRSC. Therefore, it is necessary to help DRSCs to design their networks for maintaining competitiveness and profitability. This paper focuses on the issues of quantitative modelling for the network design of a general multi-echelon, dual-objective DRSC system. By incorporating consumer preference for the online recycling channel into the system, we investigate a mixed integer linear programming (MILP) model to design the DRSC network with uncertainty and the model is solved using the ε-constraint method to derive optimal Pareto solutions. Numerical results show that there exist positive correlations between consumer preference and total collective quantity, online recycling price and the system profits. The proposed model and solution method could assist recyclers in pricing and service decisions to achieve a balance solution for economic and environmental sustainability.

scholarly journals Research on Pricing and Service Level Strategies of Dual Channel Reverse Supply Chain Considering Consumer Preference in Multi-Regional Situations

2020 ◽  
Vol 17 (23) ◽  
pp. 9143
Author(s):  
Yao Kang ◽  
Juhong Chen ◽  
Di Wu
Keyword(s):  
Stackelberg Game ◽  
Consumer Preference ◽  
Service Level ◽  
Third Party ◽  
Optimal Pricing ◽  
Reverse Supply Chain ◽  
Service Levels ◽  
Dual Channel ◽  
Transfer Prices ◽  
High Level

Facing the increasingly serious waste electrical and electronic equipment (WEEE) recycling problem, recycling enterprises actively introduce online recycling channels, build dual channel reverse supply chains (DRSC), and use high-level recycling price and service levels to enhance consumers’ recycling enthusiasm and recycling amount. Nevertheless, in China, where the imbalance of regional development is widespread, the recycling center, third-party recycler (TPR), and third-party platform (TPP) are faced with the choices of pricing and service level when facing multi-regional consumers. This paper mainly answers the following questions: (1) When the recycling center and TPP introduce online recycling channels in multi-regional situations, how should they set online recycling price, transfer price, and service level? (2) When consumer preference for online channels changes in a certain region, how should recycling enterprises adjust their optimal pricing and service level decisions for different regions to maximize their own profits? How do the profits of recycling enterprises change? In order to solve the above problems, in this paper, we propose three pricing and service level decision models for the recycling center with online channels, namely, keeping prices unchanged, unifying all prices, and maximizing its own profits. By using the Stackelberg game to solve the model, we get the optimal pricing, service level decisions, as well as the maximum profits of the recycling center, TPP, and TPR when consumer preference changes. By analyzing the results of the model, we find that the change of consumer preference for online channels in a certain region will affect the decision and profits of multi-regional recycling enterprises. Specifically, consumer preference for online channels in a certain region will not only lead to an increase in the profits of the recycling center and TPP and a decrease in the profit of local TPRs, but also an increase in the profit of TPRs in other regions. In addition, at the beginning of introducing online channels, the recycling center can adopt two strategies to avoid conflicts among channels: keeping offline transfer prices unchanged and unifying all transfer prices, but the former promotes its economic profits more significantly.

Contract coordination of dual channel reverse supply chain considering service level

2020 ◽  
Vol 260 ◽  
pp. 121071 ◽  
Author(s):  
Di Wu ◽  
Juhong Chen ◽  
Peng Li ◽  
Ruijun Zhang
Keyword(s):  
Supply Chain ◽  
Service Level ◽  
Reverse Supply Chain ◽  
Dual Channel

Modelling and analysis of network design for a reverse supply chain

2015 ◽  
Vol 26 (6) ◽  
pp. 853-867 ◽  
Author(s):  
Sajan T John ◽  
R Sridharan
Keyword(s):  
Supply Chain ◽  
Network Design ◽  
Input Parameter ◽  
Mixed Integer ◽  
Future Research ◽  
Data Sets ◽  
Reverse Supply Chain ◽  
Content Type ◽  
Product Return ◽  
Multi Stage

Purpose – The purpose of this paper is to develop a mathematical model for the design of a multi-stage reverse supply chain. Design/methodology/approach – A mixed-integer linear programming formulation is used to model the network. Different data sets are generated randomly. Lingo, an optimisation package is used to solve the model developed. Findings – The model is able to provide optimum solutions regarding the number and location of different facilities to be established in the network. The flow of different items through the network is also obtained. Analysis of the results shows the sensitivity of design decisions with respect to the changes in the input parameter value. Research limitations/implications – The authors consider only a single-product and single-period situation for this study. Further research can be done by considering a multi-product and multi-period situation. Uncertainty in data can also be included for future research. Practical implications – The developed model can aid the managers in taking optimum decisions regarding the network design of a reverse supply chain. The analysis of the model for the variations in the input parameter values can also help the decision makers to take better decisions in a reverse supply chain. Originality/value – The present research simultaneously considers two types of product return, namely, end-of-life and end-of-use product return, in a seven stage supply chain. Different recovery options such as recycling and remanufacturing are also incorporated into the model.

Pareto Improvement Strategy for Service-Based Free-Riding in a Dual-Channel Supply Chain

2014 ◽  
Vol 31 (06) ◽  
pp. 1450050 ◽  
Author(s):  
Bin Dan ◽  
Can Liu ◽  
Guangye Xu ◽  
Xumei Zhang
Keyword(s):  
Supply Chain ◽  
Rapid Development ◽  
Relative Size ◽  
System Optimization ◽  
Service Level ◽  
Free Riding ◽  
Pareto Improvement ◽  
Service Levels ◽  
Dual Channel ◽  
Dual Channel Supply Chain

With the rapid development of the Internet, many manufacturers nowadays are increasingly adopting a dual-channel strategy to sell their products. In this paper, we present an analytical framework in a single-channel supply chain and a dual-channel supply chain, respectively. We compare the optimal service levels under different scenarios to investigate the impacts of bidirectional free-riding and service competition on members' decisions. In order to realize system optimization, we propose contracts to coordinate the decentralized supply chain under different cases. We find that when a new channel is added, the retailer will always increase his service level to compete with the manufacturer, while the manufacturer needs to take the relationship with the retailer into consideration and decides whether to increase or decrease her service level. We also find that the contracts for different cases can make the optimal solutions the same as those under the centralized scenario by adjusting service levels based on the relative size of competition effect and spillover effect. Finally, we conduct numerical examples to verify the existence of Pareto improvement intervals and derive some managerial insights.

scholarly journals A Novel Closed-Loop Supply Chain Network Design Considering Enterprise Profit and Service Level

2020 ◽  
Vol 12 (2) ◽  
pp. 544 ◽  
Author(s):  
Guanshuang Jiang ◽  
Qi Wang ◽  
Ke Wang ◽  
Qianyu Zhang ◽  
Jian Zhou
Keyword(s):  
Supply Chain ◽  
Network Design ◽  
Closed Loop ◽  
Programming Model ◽  
Service Level ◽  
Operating Conditions ◽  
Mixed Integer ◽  
Supply Chain Network Design ◽  
Supply Chain Network ◽  
Closed Loop Supply Chain

Increasing concerns for sustainable development have motivated the study of closed-loop supply chain network design from a multidimensional perspective. To cope with such issues, this paper presents a general closed-loop supply chain network comprising various recovery options and further formulates a multi-objective mixed-integer linear programming model considering enterprise profit and service level simultaneously. Within this model, market segmentation is also considered to meet real-world operating conditions. Moreover, an ε -constraint method and two interactive fuzzy approaches are applied to find a global optimum for this model together with the decisions on the numbers, locations, and capacities of the facilities, as well as the material flow through the network. Ultimately, numerical experiments are conducted to demonstrate the viability and effectiveness of both the proposed model and solution approaches.

Pricing and service decision of dual-channel operations in an O2O closed-loop supply chain

2017 ◽  
Vol 117 (8) ◽  
pp. 1567-1588 ◽  
Author(s):  
Lingcheng Kong ◽  
Zhiyang Liu ◽  
Yafei Pan ◽  
Jiaping Xie ◽  
Guang Yang
Keyword(s):  
Supply Chain ◽  
Closed Loop ◽  
Wholesale Price ◽  
Revenue Sharing ◽  
Service Level ◽  
Return Rate ◽  
Transfer Payment ◽  
Channel Conflict ◽  
Content Type ◽  
Dual Channel

Purpose The online direct selling mode has been widely accepted by enterprises in the O2O era. However, the dual-channel (online/offline, forward/backward) operations of the closed-loop supply chain (CLSC) changed the relationship between manufacturers and retailers, thus resulting in channel conflict. The purpose of this paper is to take a dual-channel operations of CLSC as the research target, where a manufacturer sells a single product through a direct e-channel as well as a conventional retail channel; the retailer are responsible for collecting used products in the reverse supply chain and the manufacturer are responsible for remanufacturing. Design/methodology/approach The authors build a benchmark model of dual-channel price and service competition and take the return rate, which is considered to be related to the service level of the retailer, as the function of the service level to extend the model in the reverse SC. The authors then analyze the optimal pricing and service decision under centralization and decentralization, respectively. Finally, with the revenue-sharing factor, wholesale price and recycling price transfer payment coefficient as contract parameters, the paper also designs a revenue-sharing contract led by the manufacturer and explores in what situation the contract could realize the Pareto optimization of all players. Findings In the baseline model, the results show that optimal price and service level correlate positively in centralization; however, the relation relies on consumers’ price sensitivity in decentralization. In the extension model, the relationship between price and service level also relies on the relative value of increased service cost and remanufacturing saved cost. When the return rate correlates with the service level, a recycling transfer payment can elevate the service level and thus raise the return rate. Through analyzing the parameters in revenue-sharing contract, a point can be reached where lowering the wholesale price and raising the transfer payment coefficient will promote retailers to share revenue. Practical implications Many enterprises establish the dual-channel distribution system both online and offline, which need to understand how to resolve their channel conflict. The conflict is especially strong in CLSC with remanufacturing. The result helps the node enterprises realize the coordination of the dual-channel CLSC. Originality/value It takes into account the fact that there are two complementary relationships, such as online selling and offline delivery; used product recycling and remanufacturing. The authors optimize the strategy of product pricing and service level in order to solve channel conflict and double marginalization in the closed-loop dual-channel distribution network.

scholarly journals Network Design for Municipal Solid Waste Collection: A Case Study of the Nanjing Jiangbei New Area

2018 ◽  
Vol 15 (12) ◽  
pp. 2812 ◽  
Author(s):  
Jing Liang ◽  
Ming Liu
Keyword(s):  
Municipal Solid Waste ◽  
Network Design ◽  
Solid Waste ◽  
Relative Size ◽  
Service Level ◽  
Optimal Number ◽  
Mixed Integer ◽  
Proposed Model ◽  
The Impact ◽  
Operation Cost

Garbage collection is an important part of municipal engineering. An effective service network design can help to reduce the municipal operation cost and improve its service level. In this paper, we propose an optimization model for the network design of municipal solid waste (MSW) collection in the Nanjing Jiangbei new area. The problem was formulated as a mixed integer nonlinear programming (MINLP) model with an emphasis on minimizing the annual operation cost. The model simultaneously decides on the optimal number of refuse transfer stations (RTSs), determines the relative size and location for each RTS, allocates each community to a specific RTS, and finally identifies the annual operation cost and service level for the optimal scenario as well as other scenarios. A custom solution procedure which hybrids an enumeration rule and a genetic algorithm was designed to solve the proposed model. A sensitivity analysis was also conducted to illustrate the impact of changes in parameters on the optimality of the proposed model. Test results revealed that our model could provide tangible policy recommendations for managing the MSW collection.

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