scholarly journals Competition and Integration in Closed-Loop Supply Chain Network with Variational Inequality

2012 ◽  
Vol 2012 ◽  
pp. 1-21 ◽  
Author(s):  
Gengui Zhou ◽  
Yuxiang Yang ◽  
Jian Cao
Keyword(s):  
Supply Chain ◽  
Variational Inequality ◽  
End Of Life ◽  
Closed Loop ◽  
New Products ◽  
Horizontal Merger ◽  
Supply Chain Network ◽  
Closed Loop Supply Chain ◽  
Production Quantity ◽  
And Storage

A closed-loop supply chain network involves the manufactured and remanufactured homogeneous products. It comprises operation links to represent business activities including manufacturing/remanufacturing activities, treatment activities for EOL products, transportation activities, and storage activities, which are performed by the firms. Among all closed-loop supply chain problems, the horizontal merger of oligopolistic firms is so important and attracting to both businessman and researchers. In this paper, the interaction of the competitive firms prior to horizontal merger is analyzed. Three networks including prior to horizontal merger, postpartial merger, and complete merger are studied. Simultaneously, three economical models for these networks on different conditions of mergers are established and discussed. The variational inequality formulations are used for these three models, whose solutions give out the production quantity of new products, and remanufactured products, the product flows for new products, remanufactured products and end-of-life products at every path, the demand quantity, the recovery quantity of end-of-life products and the equilibrium prices. Finally, numerical examples are tested and illustrated for the proposed models.

scholarly journals Closed-Loop Supply Chain Network Equilibrium Model with Subsidy on Green Supply Chain Technology Investment

2019 ◽  
Vol 11 (16) ◽  
pp. 4403 ◽  
Author(s):  
Haixiang Wu ◽  
Bing Xu ◽  
Ding Zhang
Keyword(s):  
Supply Chain ◽  
Variational Inequality ◽  
Closed Loop ◽  
Raw Materials ◽  
Investment Decision ◽  
Green Supply Chain ◽  
Supply Chain Network ◽  
Closed Loop Supply Chain ◽  
Government Subsidies ◽  
Technology Investment

The green supply chain (GSC) can effectively reduce the waste of resources and avoid environmental pollution. For a closed-loop supply chain network consisting of multiple manufacturers, multiple retailers, and multiple consumer and recycling markets, we assume that retailers are responsible for the recycling of used products, manufacturers use raw materials to produce new products and recycled products for remanufacturing, and government departments subsidize all manufacturers and retailers for GSC technology investment. Then, the equilibrium conditions of manufacturers, retailers, demand markets, and recycling markets are obtained by using the variational inequality method, complementarity theorem, and Nash equilibrium theory, and the variational inequality model of the closed-loop supply chain network multiphase equilibrium is established. Based on numerical simulation, the optimal technology investment decision of green supply chain under different government subsidy rates, and the influence of market structure and enterprise cost asymmetry on the equilibrium solution of supply chain network are analyzed. The results show that government subsidies can effectively promote enterprises to upgrade their level of GSC technology investment. The intensification of enterprise competition and the asymmetry of enterprise costs will affect the composition of enterprise profits and the allocation of profits between enterprises, and the former will weaken the effect of government subsidies.

Closed supply network modelling for end-of-life ship remanufacturing

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Prem Chhetri ◽  
Mahsa Javan Nikkhah ◽  
Hamed Soleimani ◽  
Shahrooz Shahparvari ◽  
Ashkan Shamlou
Keyword(s):  
Supply Chain ◽  
End Of Life ◽  
Closed Loop ◽  
Payback Period ◽  
Mixed Integer ◽  
Supply Chain Network ◽  
Supply Network ◽  
Closed Loop Supply Chain ◽  
Content Type ◽  
Milp Model

PurposeThis paper designs an optimal closed-loop supply chain network with an integrated forward and reverse logistics to examine the possibility of remanufacturing end-of-life (EoL) ships.Design/methodology/approachExplanatory variables are used to estimate the number of EoL ships available in a closed-loop supply chain network. The estimated number of EoL ships is used as an input in the model and then it is solved by a mixed-integer linear programming (MILP) model of the closed-loop supply chain network to minimise the total logistic costs. A discounted payback period formula is developed to calculate the length of time to recoup an investment based on the investment's discounted cash flows. Existing ship wrecking industry clusters in the Western region of India are used as the case study to apply the proposed model.FindingsThe MILP model has optimised the total logistics costs of the closed-loop supply network and ascertained the optimal number and location of remanufacturing for building EoL ships. The capital and variable costs required for establishing and operating remanufacturing centres are computed. To remanufacture 30 ships a year, the discounted payback period of this project is estimated to be less than two years.Practical implicationsShip manufacturing businesses are yet to re-manufacture EoL ships, given high upfront capital expenditure and operational challenges. This study provides management insights into the costs and benefits of EoL ship remanufacturing; thus, informing the decision-makers to make strategic operational decisions.Originality/valueThe design of an optimal close loop supply chain network coupled with a Bayesian network approach and discounted payback period formula for the collection and remanufacturing of EoL ships provides a new integrated perspective to ship manufacturing.

scholarly journals Closed-Loop Supply Chain Network under Oligopolistic Competition with Multiproducts, Uncertain Demands, and Returns

2014 ◽  
Vol 2014 ◽  
pp. 1-15 ◽  
Author(s):  
Yan Zhou ◽  
Chi Kin Chan ◽  
Kar Hung Wong ◽  
Y. C. E. Lee
Keyword(s):  
Supply Chain ◽  
Variational Inequality ◽  
Nash Equilibrium ◽  
Closed Loop ◽  
New Product ◽  
Supply Chain Network ◽  
Oligopolistic Competition ◽  
Equilibrium Conditions ◽  
Closed Loop Supply Chain ◽  
Set Up

We develop an equilibrium model of a closed-loop supply chain (CLSC) network with multiproducts, uncertain demands, and returns. This model belongs to the context of oligopolistic firms that compete noncooperatively in a Cournot-Nash framework under a stochastic environment. To satisfy the demands, we use two different channels: manufacturing new products and remanufacturing returned products through recycling used components. Since both the demands and product returns are uncertain, we consider two types of risks: overstocking and understocking of multiproducts in the forward supply chain. Then we set up the Cournot-Nash equilibrium conditions of the CLSC network whereby we maximize every oligopolistic firm's expected profit by deciding the production quantities of each new product as well as the path flows of each product on the forward supply chain. Furthermore, we formulate the Cournot-Nash equilibrium conditions of the CLSC network as a variational inequality and prove the existence and the monotonicity of the variational inequality. Finally, numerical examples are presented to illustrate the efficiency of our model.

Research on Multi-Period Closed-Loop Supply Chain Network Equilibrium Based on Consumers' Preference for Products

2020 ◽  
Vol 13 (4) ◽  
pp. 68-94
Author(s):  
Xiu Guoyi ◽  
Duan Caiquan ◽  
Zhang Yubin ◽  
Zhang Yunhui
Keyword(s):  
Supply Chain ◽  
Closed Loop ◽  
New Products ◽  
Consumer Preference ◽  
Supply Chain Network ◽  
Planning Period ◽  
Closed Loop Supply Chain ◽  
Static Conditions ◽  
Preliminary Planning ◽  
The Impact

This paper comprehensively analyzes the impact of consumer preference for products in a multi-period closed-loop supply chain network (CLSCN) equilibrium. This paper is based on the multi-period CLSCN equilibrium model of remanufacturers' recoveries and multiple planning periods. The consumer preference for products at multiple planning periods are respectively divided into dynamic and static conditions. Moreover, the intervention of government is considered. Meanwhile, the variational inequalities are employed to separately depict the optimal behaviors and equilibrium conditions of the supply chain network. The results show that when the consumer preference for new products is static, the impact of consumer preference for new products has a significant impact on the multi-period CLSCN. If consumer preference for new products is dynamic, at the preliminary planning period, the impact of consumer preference for new products on the multi-period CLSCN will be better defined.

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