Distributor-Remanufacturing Model for Closed-Loop Supply Chain: Basing on Stackelberg Game Model

2020 ◽  
Vol 29 (6) ◽  
Author(s):  
Ruiqi Xu ◽  
Kai Wang ◽  
Wei Yan
2021 ◽  
Vol 13 (11) ◽  
pp. 6425
Author(s):  
Quanxi Li ◽  
Haowei Zhang ◽  
Kailing Liu

In closed-loop supply chains (CLSC), manufacturers, retailers, and recyclers perform their duties. Due to the asymmetry of information among enterprises, it is difficult for them to maximize efficiency and profits. To maximize the efficiency and profit of the CLSC, this study establishes five cooperation models of CLSC under the government‘s reward–penalty mechanism. We make decisions on wholesale prices, retail prices, transfer payment prices, and recovery rates relying on the Stackelberg game method and compare the optimal decisions. This paper analyzes the impact of the government reward-penalty mechanism on optimal decisions and how members in CLSC choose partners. We find that the government’s reward-penalty mechanism can effectively increase the recycling rate of used products and the total profit of the closed-loop supply chain. According to the calculation results of the models, under the government’s reward-penalty mechanism, the cooperation can improve the CLSC’s used products recycling capacity and profitability. In a supply chain, the more members participate in the cooperation, the higher profit the CLSC obtain. However, the cooperation mode of all members may lead to monopoly, which is not approved by government and customers.


Author(s):  
Dooho Lee

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.


2020 ◽  
Vol 2020 ◽  
pp. 1-22 ◽  
Author(s):  
Doo Ho Lee

In this study, we consider a three-echelon closed-loop supply chain consisting of a manufacturer, a collector, and two duopolistic recyclers. In the supply chain, the collector collects end-of-life products from consumers in the market. Then, both recyclers purchase the recyclable waste from the collector, and each recycler turns them into new materials. The manufacturer has no recycling facilities; therefore, the manufacturer only purchases the recycled and new materials for its production from the two recyclers. Under this scenario, price competition between recyclers is inevitable. With two pricing structures (Nash and Stackelberg) of the leaders group and three competition behaviors (Collusion, Cournot, and Stackelberg) of the followers group, we suggest six different pricing game models. In each of them, we establish a pricing game model among the members, prove the uniqueness of the equilibrium prices of the supply chain members, and discuss the effects of competition on the overall supply chain’s profitability. Our numerical experiment indicates that as the price competition between recyclers intensifies, the supply chain profitability decreases. Moreover, the greater the recyclability degree of the waste is, the higher the profits in the supply chain become.


2016 ◽  
Vol 2016 ◽  
pp. 1-13 ◽  
Author(s):  
Jie Gao ◽  
Xiong Wang ◽  
Qiuling Yang ◽  
Qin Zhong

The dual-channel closed-loop supply chain (CLSC) which is composed of one manufacturer and one retailer under uncertain demand of an indirect channel is constructed. In this paper, we establish three pricing models under decentralized decision making, namely, the Nash game between the manufacturer and the retailer, the manufacturer-Stackelberg game, and the retailer-Stackelberg game, to investigate pricing decisions of the CLSC in which the manufacturer uses the direct channel and indirect channel to sell products and entrusts the retailer to collect the used products. We numerically analyze the impact of customer acceptance of the direct channel (θ) on pricing decisions and excepted profits of the CLSC. The results show that when the variableθchanges in a certain range, the wholesale price, retail price, and expected profits of the retailer all decrease whenθincreases, while the direct online sales price and manufacturer’s expected profits in the retailer-Stackelberg game all increase whenθincreases. However, the optimal recycling transfer price and optimal acquisition price of used product are unaffected byθ.


2021 ◽  
Author(s):  
Yuhao Zhang ◽  
Tao Zhang

Abstract In this paper, we study a dual-channel closed-loop supply chain(CLSC), where the manufacturer wholesales the new product through the traditional retail channel and distributes the remanufactured product via a direct channel established by himself. We focus on developing two dynamic Stackelberg game models under the assumption of the retailer is an adaptive agent and the manufacturer is a bounded rational player with non-delay and delay decisions. The existence and locally asymptotic stability of Nash equilibrium is investigated, and also the complex dynamics of each model is illustrated including period-doubling bifurcation, Neimark-Sacker bifurcation, strange attractor and chaotic phenomena. Numerical simulations are conducted to examine the impacts of key parameters on the complex behaviors of the long-run dynamic Stackelberg game and the performance of chain members under various scenarios. The results reveal that the excessively high value of the price adjustment speed of the manufacturer, the consumer discount perception for the remanufactured product as well as the consumer preference degree to the direct channel have adestabilization effect on the Nash equilibrium. Besides, the delay decision adopted by manufacturer no matter in the traditional or direct channel does not always necessarily make the system more stable, but the appropriately delay weights can expand the stability domain of the system. Moreover, the manufacturer would suffer a significant profit loss while the retailer can capture more profits when the dual-channel CLSC system falls into periodic cycles and chaos motions. At last, the variable feedback control method is utilized to eliminate the delayed system chaos.


2018 ◽  
Vol 10 (12) ◽  
pp. 4738 ◽  
Author(s):  
Xiaodong Zhu ◽  
Lingfei Yu ◽  
Ji Zhang ◽  
Chenliang Li ◽  
Yizhao Zhao

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.


2016 ◽  
Vol 2016 ◽  
pp. 1-15 ◽  
Author(s):  
Zunya Shi ◽  
Nengmin Wang ◽  
Tao Jia ◽  
Haoxun Chen

The importance of remanufacturing has been recognized in research and practice. The integrated system, combining the forward and reverse activities of supply chains, is called closed-loop supply chain (CLSC) system. By coordination in the CLSC system, players will get economic improvement. This paper studies different coordination performances of two types of contracts, two-part tariff (TTC) and reverse revenue sharing contract (RRSC), in a closed-loop system. Through mathematical analysis based on Stackelberg Game Theory, we find that it is easy for manufacturer to improve more profits and retailer’s collection effects by adjusting the ratio of transfer collection price through RRSC, and we also give the function to calculate the best ratio of transfer collection price, which may be a valuable reference for the decision maker in practice. Besides, our results also suggest that although the profits of the coordinated CLSC system are always higher than the contradictory scenario, the RRSC is more favorable to the manufacturer than to the retailer, as results show that the manufacturer will share more profits from the system through RRSC. Therefore, RRSC has attracted the manufacturers more to closing the supply chain for economic consideration.


Author(s):  
Wu Mei-xiang ◽  
Shi Cheng-dong ◽  
Sun Qiang

—In order to study the retailer-led differentiated guarantee behavior of CLSC's remanufactured products, assuming that demand is influenced by differentiated guarantee period of remanufactured products and consumers' willingness to pay, three game models of unguaranteed, manufacturer's guarantee and retailer's guarantee are constructed respectively to discuss the influence of guarantee mode selection and guarantee cost parameters on each member's decision. The results show that differentiated guarantees for remanufactured products are beneficial to extending the guarantee period, reducing the price of remanufactured products, improving CLSC members and overall profits. When consumers are less sensitive to differentiated guarantee for remanufactured products, CLSC decision in each mode has little to do with guarantee cost parameters and guarantor selection. When consumers are more sensitive, the advantages of each guarantee mode are significantly different, and manufacturer guarantee is the common choice of both parties. Finally, an example is given to further verify the conclusion.


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