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Trade-in strategies in retail channel and dual-channel closed-loop supply chain with remanufacturing

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  • Xiao, Lu
  • Wang, Xian-Jia
  • Chin, Kwai-Sang

Abstract

To derive conditions for manufacturer and retailer to implement trade-in policies voluntarily and identify the optimal channel format for trade-in, we construct traditional retail channel model and dual-channel model under two scenarios: without trade-in and with trade-in. We find that the retailer would implement trade-in policy voluntarily in traditional retail channel only if old customers’ market share exceeds a certain threshold. Interestingly, the result is opposite in dual-channel case. The traditional retail channel and the dual-channel could be the optimal choice for implementing trade-in respectively, depending on different value ranges of customers’ acceptance of direct online channel.

Suggested Citation

  • Xiao, Lu & Wang, Xian-Jia & Chin, Kwai-Sang, 2020. "Trade-in strategies in retail channel and dual-channel closed-loop supply chain with remanufacturing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 136(C).
    • Handle: RePEc:eee:transe:v:136:y:2020:i:c:s1366554518304538
    DOI: 10.1016/j.tre.2020.101898
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    4. Lijun Meng & Qiang Qiang & Zuqing Huang & Baoyou Zhang & Yuxiang Yang, 2020. "Optimal Pricing Strategy and Government Consumption Subsidy Policy in Closed-Loop Supply Chain with Third-Party Remanufacturer," Sustainability, MDPI, vol. 12(6), pages 1-29, March.
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    7. Cao, Kaiying & Su, Yunyi & Han, Guoxin & Choi, Tsan-Ming, 2022. "Is it wise to offer rebates for unused extended warranties under trade-in programs in supply chains?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 167(C).
    8. Zhang, Abraham & Wang, Jason X. & Farooque, Muhammad & Wang, Yulan & Choi, Tsan-Ming, 2021. "Multi-dimensional circular supply chain management: A comparative review of the state-of-the-art practices and research," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 155(C).
    9. Mandal, Anindya & Pal, Brojeswar, 2023. "Investigating dual-channel green supply chain considering refurbishing process and product recycling with environmental awareness effort," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 204(C), pages 695-726.
    10. Yang, Feng & Wang, Manman & Ang, Sheng, 2021. "Optimal remanufacturing decisions in supply chains considering consumers’ anticipated regret and power structures," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 148(C).
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    12. Essam Kaoud & Mohammad A. M. Abdel-Aal & Tatsuhiko Sakaguchi & Naoki Uchiyama, 2020. "Design and Optimization of the Dual-Channel Closed Loop Supply Chain with E-Commerce," Sustainability, MDPI, vol. 12(23), pages 1-21, December.
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    15. Kittaka, Yuta & Matsushima, Noriaki & Saruta, Fuyuki, 2022. "Negative effect of price-matching policy on traditional retailers in a dual-channel supply chain with different content formats," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 161(C).

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