scholarly journals A Marketing Strategy in a Closed-Loop Supply Chain with Loss-Averse Consumers

2018 ◽  
Vol 2018 ◽  
pp. 1-9 ◽  
Author(s):  
Bi-feng Liao ◽  
Bang-yi Li
Keyword(s):  
Supply Chain ◽  
Demand Uncertainty ◽  
Closed Loop ◽  
Sensitivity Analyses ◽  
Market Demand ◽  
Closed Loop Supply Chain ◽  
Online Store ◽  
Consumer Valuation ◽  
Proposed Model ◽  
Valuation Uncertainty

The importance of remanufacturing system has been extensively investigated in recent years. Taking into account the consumer valuation uncertainty and the demand uncertainty, this paper addresses the issue of closed-loop supply chain with remanufacturing by game theory. We consider two types of consumers in the market: loss-neutral consumers and loss-averse consumers. The loss-neutral consumers are completely rational. The loss-averse consumers, on the other hand, are with losses being more painful than equal-sized gains being pleasant. When multichannel structure can be chosen, the manufacturer has three pricing strategies in direct market: (1) keeping the price high with a small discount, no customers choose the online store; (2) keeping the price high with a moderate discount, only the loss-neutral customers choose the online store; (3) keeping the price low with a big discount, all customers choose the online store. Consumers make up their decisive selections through comparing the price and channel attributes. We introduce utility function for analyzing the market demand and then identify the optimal pricing and channel strategy to maximize the manufacturer’s profit. Finally, the rationality and validities of the proposed model are illustrated by numerical examples, and sensitivity analyses of the parameters are also presented.

scholarly journals Green Closed-Loop Supply Chain Network under the COVID-19 Pandemic

2021 ◽  
Vol 13 (16) ◽  
pp. 9407
Author(s):  
Lily Poursoltan ◽  
Seyed-Mohammad Seyed-Hosseini ◽  
Armin Jabbarzadeh
Keyword(s):  
Supply Chain ◽  
Network Design ◽  
Carbon Emissions ◽  
Environmental Sustainability ◽  
Closed Loop ◽  
Network Design Problem ◽  
Sensitivity Analyses ◽  
Supply Chain Network ◽  
Closed Loop Supply Chain ◽  
Proposed Model

The closed-loop supply chain considers conceptually the possibility of reverse logistics with the use of recycling, remanufacturing and disposal centers. This study contributes for the first time a green closed-loop supply chain framework for the ventilators, which are highly important in the case of the COVID-19 pandemic. The proposed model simulates a case study of Iranian medical ventilator production. The proposed model includes environmental sustainability to limit the carbon emissions as a constraint. A novel stochastic optimization model with strategic and tactical decision making is presented for this closed-loop supply chain network design problem. To make the proposed ventilator logistics network design more realistic, most of the parameters are considered to be uncertain, along with the normal probability distribution. Finally, to show the managerial dimensions under the COVID-19 pandemic for our proposed model, some sensitivity analyses are performed. Results confirm the high impact of carbon emissions and demand variations on the optimal solution in the case of COVID-19.

scholarly journals Who Drives Green Innovation? A Game Theoretical Analysis of a Closed-Loop Supply Chain under Different Power Structures

2020 ◽  
Vol 17 (7) ◽  
pp. 2274 ◽  
Author(s):  
Dooho Lee
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Closed Loop ◽  
Stackelberg Game ◽  
Innovation Strategy ◽  
Market Demand ◽  
Green Innovation ◽  
Closed Loop Supply Chain ◽  
Innovation Strategies ◽  
Market Leadership

As awareness of environmental protection increases worldwide, enterprises have been building their supply chains in ways that conserve natural resources and minimize the creation of pollutants. One of the practical ways to make supply chains more sustainable is for enterprises to utilize green innovation strategies and to increase resource reuse. In this work, we focus on a closed-loop supply chain (CLSC) consisting of a manufacturer, a retailer, and a collector. In the investigated CLSC, the manufacturer and the retailer drive the green innovation strategy either individually or simultaneously to boost market demand. In the reverse flow of the CLSC, the collector is responsible for collecting consumers’ used products and transferring them to the manufacturer for remanufacturing. By combining two types of the market leadership and three types of green innovation strategies, we establish six different Stackelberg game models and solve them analytically. Through an extensive comparative analysis, we show who should have market leadership and who should drive the green innovation strategy in the CLSC. Various numerical examples are also given to support our major findings. One of our key findings suggests that the supply chain members must participate in green innovation activities at the same time to achieve a win-win scenario in the CLSC.

The Uncertain Programming of the Closed-Loop Supply Chain with Remanufacturing System

2012 ◽  
Vol 190-191 ◽  
pp. 218-221 ◽  
Author(s):  
Yu Juan Chen ◽  
Dong Bo Liu ◽  
Hong Wei Mao ◽  
Zi Qiang Zhang
Keyword(s):  
Supply Chain ◽  
Hybrid System ◽  
Closed Loop ◽  
Programming Model ◽  
Uncertain Programming ◽  
Fuzzy Simulation ◽  
Closed Loop Supply Chain ◽  
Proposed Model ◽  
Uncertain Model ◽  
Intelligent Optimization Algorithm

This paper addresses an integrated uncertain programming model for a closed-loop supply chain with manufacturing/remanufacturing hybrid system. The hybrid system is studied under the grey fuzzy uncertainty and grey uncertainty. The hybrid intelligent optimization algorithm integrating the grey fuzzy simulation, neural network and genetic algorithm can optimize the uncertain model. One numerical example is given to illustrate the effectiveness of the proposed model and algorithm.

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

2018 ◽  
Vol 10 (12) ◽  
pp. 4738 ◽  
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.

Robust optimization model for sustainable supply chain for production and distribution of polyethylene pipe

2020 ◽  
Vol 15 (4) ◽  
pp. 1613-1653
Author(s):  
Jaber Valizadeh ◽  
Ehsan Sadeh ◽  
Zainolabedin Amini Sabegh ◽  
Ashkan Hafezalkotob
Keyword(s):  
Genetic Algorithm ◽  
Supply Chain ◽  
Environmental Impacts ◽  
Closed Loop ◽  
Optimal Location ◽  
Computational Time ◽  
Closed Loop Supply Chain ◽  
Content Type ◽  
Proposed Model ◽  
Production And Distribution

Purpose In this study, the authors consider the key decisions in the design of the green closed-loop supply chain (CSLC) network. These decisions include considering the optimal location of suppliers, production facilities, distribution, customers, recycling centers and disposal of non-recyclable goods. In the proposed model, the level of technology used in recycling and production centers is taken into account. Moreover, in this paper is the environmental impacts of production and distribution of products based on the eco-indicator 99 are considered. Design/methodology/approach In this study, the author consider the key decisions in the design of the green CLSC network. These decisions include considering the optimal location of suppliers, production facilities, distribution, customers, recycling centers and disposal of non-recyclable goods. In the proposed model, the level of technology used in recycling and production centers is taken into account. Moreover, the environmental impacts of production and distribution of products based on the eco-indicator 99 are considered. Findings The results indicate that the results obtained from the colonial competition algorithm have higher quality than the genetic algorithm. This quality of results includes relative percentage deviation and computational time of the algorithm and it is shown that the computational time of the colonial competition algorithm is significantly lower than the computational time of the genetic algorithm. Furthermore, the limit test and sensitivity analysis results show that the proposed model has sufficient accuracy. Originality/value Solid modeling of the green supply chain of the closed loop using the solid optimized method by Bertsimas and Sim. Development of models that considered environmental impacts to the closed loop supply chain. Considering the impact of the technology type in the manufacture of products and the recycling of waste that will reduce emissions of environmental pollutants. Another innovation of the model is the multi-cycle modeling of the closed loop of supply chain by considering the uncertainty and the fixed and variable cost of transport.

scholarly journals Emergency Strategies of Closed-Loop Supply Chain with Single Retailer Recycling under Demand Disruptions

2020 ◽  
Vol 2020 ◽  
pp. 1-19
Author(s):  
Jian Cao ◽  
Yuting Yan ◽  
Lingyuan Wang ◽  
Xihui Chen ◽  
Xuemei Zhang ◽  
...  
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Closed Loop ◽  
Wholesale Price ◽  
Normal Operation ◽  
Market Demand ◽  
Closed Loop Supply Chain ◽  
Decentralized Decision Making ◽  
Retail Prices ◽  
Emergency Decision

The uncertainty caused by emergencies will influence the normal operation of the supply chain. Considering demand disruptions, a closed-loop supply chain consisting of one manufacturer and two competing retailers based on decentralized decision-making is considered. In the supply chain, one retailer recovers end-of-life products while the other does not. Analytic results show that, when the disturbance of demand occurs, the manufacturer and retailers adjust the wholesale price and retail prices of products according to the direction of the market demand disruptions. Under demand disruptions, the retailer who participates in recovering can gain more profits, especially in the case of the positive disruption. Theoretic and pragmatic references for the emergency decision-making of closed-loop supply chain enterprises are provided.

Multi-objective robust optimization for multi-stage-multi-product agile closed-loop supply chain under uncertainty in the context of circular economy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Saeid Jafarzadeh Ghoushchi ◽  
Iman Hushyar ◽  
Kamyar Sabri-Laghaie
Keyword(s):  
Supply Chain ◽  
Robust Optimization ◽  
Circular Economy ◽  
Closed Loop ◽  
Mixed Integer ◽  
Closed Loop Supply Chain ◽  
Content Type ◽  
Multi Objective ◽  
Multi Stage ◽  
Proposed Model

PurposeA circular economy (CE) is an economic system that tries to eliminate waste and continually use resources. Due to growing environmental concerns, supply chain (SC) design should be based on the CE considerations. In addition, responding and satisfying customers are the challenges managers constantly encounter. This study aims to improve the design of an agile closed-loop supply chain (CLSC) from the CE point of view.Design/methodology/approachIn this research, a new multi-stage, multi-product and multi-period design of a CLSC network under uncertainty is proposed that aligns with the goals of CE and SC participants. Recycling of goods is an important part of the CLSC. Therefore, a multi-objective mixed-integer linear programming model (MILP) is proposed to formulate the problem. Besides, a robust counterpart of multi-objective MILP is offered based on robust optimization to cope with the uncertainty of parameters. Finally, the proposed model is solved using the e-constraint method.FindingsThe proposed model aims to provide the strategic choice of economic order to the suppliers and third-party logistic companies. The present study, which is carried out using a numerical example and sensitivity analysis, provides a robust model and solution methodology that are effective and applicable in CE-related problems.Practical implicationsThis study shows how all upstream and downstream units of the SC network must work integrated to meet customer needs considering the CE context.Originality/valueThe main goal of the CE is to optimize resources, reduce the use of raw materials, and revitalize waste by recycling. In this study, a comprehensive model that can consider both SC design and CE necessities is developed that considers all SC participants.

scholarly journals Optimal Manufacturing-Remanufacturing Production Policy for a Closed-Loop Supply Chain under Fill Rate and Budget Constraint in Bifuzzy Environments

2014 ◽  
Vol 2014 ◽  
pp. 1-14 ◽  
Author(s):  
Soumita Kundu ◽  
Tripti Chakrabarti ◽  
Dipak Kumar Jana
Keyword(s):  
Supply Chain ◽  
Closed Loop ◽  
Budget Constraint ◽  
Raw Material ◽  
Market Demand ◽  
Fill Rate ◽  
Closed Loop Supply Chain ◽  
Manufacturing Facility ◽  
Production Policy

We study a closed-loop supply chain involving a manufacturing facility and a remanufacturing facility. The manufacturer satisfies stochastic market demand by remanufacturing the used product into “as-new” one and producing new products from raw material in the remanufacturing facility and the manufacturing facility, respectively. The remanufacturing cost depends on the quality of used product. The problem is maximizing the manufacturer’s expected profit by jointly determining the collected quantity of used product and the ordered quantity of raw material. Following that we analyze the model with a fill rate constraint and a budget constraint separately and then with both the constraints. Next, to handle the imprecise nature of some parameters of the model, we develop the model with both constraints in bifuzzy environment. Finally numerical examples are presented to illustrate the models. The sensitivity analysis is also conducted to generate managerial insight.

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