scholarly journals Optimal decision problem in a three-level closed-loop supply chain with risk-averse players under demand uncertainty

2019 ◽  
pp. 351-368 ◽  
Author(s):  
Safoura Famil Alamdar ◽  
Masoud Rabbani ◽  
Jafar Heydari
Keyword(s):  
Supply Chain ◽  
Decision Problem ◽  
Demand Uncertainty ◽  
Closed Loop ◽  
Optimal Decision ◽  
Risk Averse ◽  
Closed Loop Supply Chain

scholarly journals Game Analysis and Coordination of a Closed-Loop Supply Chain: Perspective of Components Reuse Strategy

2020 ◽  
Vol 12 (22) ◽  
pp. 9681
Author(s):  
Xiaomin Zhao ◽  
Xueli Bai ◽  
Zhihui Fan ◽  
Ting Liu
Keyword(s):  
Game Theory ◽  
Supply Chain ◽  
Price Elasticity ◽  
Closed Loop ◽  
Economic Value ◽  
Wholesale Price ◽  
Optimal Decision ◽  
Closed Loop Supply Chain ◽  
Game Analysis

This paper studies a closed-loop supply chain that covers three key members: Manufacturer, new components supplier, and recycled-components supplier. Considering the power of each member in the chain, we use game theory to analyze the optimal decision and coordination, particularly investigating the economic value of components reuse strategy. The results show that, in a decentralized setting, the value of components reuse highly depends on the attributes of the products. For the products with low price elasticity, reuse strategy is only beneficial to the recycled-components suppliers. Further investigation shows the manufacturer can use wholesale price contracts to coordinate and improve the supply chain’s performance.

Competitive Pricing and Remanufacturing Problem in an Uncertain Closed-Loop Supply Chain with Risk-Sensitive Retailers

2018 ◽  
Vol 35 (01) ◽  
pp. 1850003 ◽  
Author(s):  
Hua Ke ◽  
Yong Wu ◽  
Hu Huang
Keyword(s):  
Supply Chain ◽  
Closed Loop ◽  
Historical Data ◽  
Risk Sensitivity ◽  
Risk Averse ◽  
Closed Loop Supply Chain ◽  
Academic Fields ◽  
Risk Sensitive ◽  
The Face ◽  
Competitive Pricing

Nowadays, pricing and remanufacturing problems under uncertain markets have gained increasing attention from both industrial and academic fields. In the literature, it is generally assumed that all the channel members are risk-neutral, ignoring the influences of channel members’ risk attitudes in the face of dynamic market. This paper focuses on a pricing problem in a closed-loop supply chain (CLSC) with two competitive risk-sensitive retailers under uncertain environment. The uncertainty is associated with the recycling costs, consumer demands and remanufacturing costs. Due to the dynamic market, supply chain managers may be unable to collect enough historical data to estimate these demands and costs when making pricing and remanufacturing decisions. In such cases, experts’ estimations are usually employed to describe these uncertain parameters. To deal with these human estimations, an uncertainty theory-based model is proposed. Based on the equilibrium results, how the retailers’ risk sensitivity and human estimations (uncertain degrees) affect the prices and profits is analyzed. It is found that both the retailers will get lower profits while the manufacturer will gain more profit when either of the two retailers becomes more risk-averse. We also find that a higher level of uncertainty in the supply chain will induce a higher collecting rate.

scholarly journals Design and Optimization of the Dual-Channel Closed Loop Supply Chain with E-Commerce

2020 ◽  
Vol 12 (23) ◽  
pp. 10117
Author(s):  
Essam Kaoud ◽  
Mohammad A. M. Abdel-Aal ◽  
Tatsuhiko Sakaguchi ◽  
Naoki Uchiyama
Keyword(s):  
Supply Chain ◽  
Closed Loop ◽  
Internet Technology ◽  
Mixed Integer ◽  
Optimal Decision ◽  
Closed Loop Supply Chain ◽  
Design And Optimization ◽  
Dual Channel ◽  
Dual Channels ◽  
Managerial Implications

The depletion of natural resources and the degradation of the ecosystem have led many countries to adopt closed-loop supply activities in both their industrial and service sectors. With the widespread use of Internet technology, these aspects motivate the incorporation of e-commerce with the classical closed-loop supply chain. This study suggests a novel mixed-integer linear programming (MILP) model that addresses the integration of e-commerce with a multi-echelon closed-loop supply chain with a multi-period planning time horizon by considering dual channels in manufacturing, and recovery facilities. To validate the model, we obtain optimal decision variables and examine the robustness and applicability of the model, and comprehensive computational experiments are performed. Moreover, sensitivity analysis is carried out to illustrate the efficacy of e-commerce integration by considering the two channels in the closed-loop supply chain. Accordingly, the total cost of the dual-channel CLSC decreases with an increase in customer demand via online retailers, the returned end of life (EOL) products, recycling ratio, and recovery ratio. Some useful managerial implications are provided based on the conducted analysis.

scholarly journals Risk-Averse Facility Location for Green Closed-Loop Supply Chain Networks Design under Uncertainty

2018 ◽  
Vol 10 (11) ◽  
pp. 4072 ◽  
Author(s):  
Xiao Zhao ◽  
Xuhui Xia ◽  
Lei Wang ◽  
Guodong Yu
Keyword(s):  
Supply Chain ◽  
Facility Location ◽  
Co2 Emissions ◽  
Closed Loop ◽  
Emission Rate ◽  
Uncertain Demand ◽  
Risk Averse ◽  
Closed Loop Supply Chain ◽  
Linearization Technique ◽  
Reformulation Linearization

With the increasing attention given to environmentalism, designing a green closed-loop supply chain network has been recognized as an important issue. In this paper, we consider the facility location problem, in order to reduce the total costs and CO2 emissions under an uncertain demand and emission rate. Particularly, we are more interested in the risk-averse method for providing more reliable solutions. To do this, we employ a coherent risk measure, conditional value-at-risk, to represent the underlying risk of uncertain demand and CO2 emission rate. The resulting optimization problem is a 0-1 mixed integer bi-objective programming, which is challenging to solve. We develop an improved reformulation-linearization technique, based on decomposed piecewise McCormick envelopes, to generate lower bounds efficiently. We show that the proposed risk-averse model can generate a more reliable solution than the risk-neutral model, both in reducing penalty costs and CO2 emissions. Moreover, the proposed algorithm outperforms and classic reformulation-linearization technique in convergence rate and gaps. Numerical experiments based on random data and a ‘real’ case are performed to demonstrate the performance of the proposed model and algorithm.

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

2021 ◽  
Vol 2021 ◽  
pp. 1-16
Author(s):  
Qunxiang Zhang ◽  
Zuqing Huang ◽  
Rong Zheng
Keyword(s):  
Supply Chain ◽  
Closed Loop ◽  
Consumer Preference ◽  
Third Party ◽  
Risk Averse ◽  
Manufacturing Costs ◽  
Closed Loop Supply Chain ◽  
Pricing Decisions ◽  
Retail Prices ◽  
Preference Coefficient

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.

scholarly journals Managing Pricing of Closed-Loop Supply Chain Under Patent Protection

2015 ◽  
Vol 3 (1) ◽  
pp. 37-47
Author(s):  
Xiaogang Cao ◽  
Leqi Hua ◽  
Hui Wen ◽  
Yan Wu
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Decision Problem ◽  
Patent Protection ◽  
Closed Loop ◽  
Third Party ◽  
Closed Loop Supply Chain ◽  
The Third ◽  
Pricing Decision ◽  
The Third Party

AbstractThis paper studies the closed-loop supply chain decision problem in which the original manufacturer allows the third-party remanufacturer to remanufacture under patent protection. In the two cycle mode, the authors discuss the pricing decision problem of the original manufacturer, the retailer, and the third-party remanufacturer in centralized and decentralized decision-making cases. The authors obtain the optimal sale price and wholesale price of new products and remanufactured products in two cases, and the optimal recycling rate of used products in centralized decision-making case. Finally, the authors carry out the corresponding numerical simulation of the pricing decision.

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