IDEAS home Printed from https://ideas.repec.org/a/spr/annopr/v257y2017i1d10.1007_s10479-016-2123-6.html
   My bibliography  Save this article

Coordination of fuzzy closed-loop supply chain with price dependent demand under symmetric and asymmetric information conditions

Author

Listed:
  • Jing Zhao

    (Tianjin Polytechnic University)

  • Jie Wei

    (Military Transportation University)

  • Xiaochen Sun

    (Tianjin University)

Abstract

This paper investigates the coordination issue of a two-echelon fuzzy closed-loop supply chain. Two coordinating models with symmetric and asymmetric information about retailer’s collecting scale parameter are established by using game theory, and the corresponding analytical solutions are obtained. Theoretical analysis and numerical example show that the maximal expected profits of the fuzzy closed-loop supply chain in two coordination situations are equal to that in the centralized decision case and greater than that in the decentralized decision scenario. Furthermore, under asymmetric information contract, the maximal expected profit obtained by the low-collecting-scale-level retailer is higher than that under symmetric information contract.

Suggested Citation

  • Jing Zhao & Jie Wei & Xiaochen Sun, 2017. "Coordination of fuzzy closed-loop supply chain with price dependent demand under symmetric and asymmetric information conditions," Annals of Operations Research, Springer, vol. 257(1), pages 469-489, October.
    • Handle: RePEc:spr:annopr:v:257:y:2017:i:1:d:10.1007_s10479-016-2123-6
    DOI: 10.1007/s10479-016-2123-6
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10479-016-2123-6
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10479-016-2123-6?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Zhao, Jing & Tang, Wansheng & Zhao, Ruiqing & Wei, Jie, 2012. "Pricing decisions for substitutable products with a common retailer in fuzzy environments," European Journal of Operational Research, Elsevier, vol. 216(2), pages 409-419.
    2. Xie, Ying & Petrovic, Dobrila & Burnham, Keith, 2006. "A heuristic procedure for the two-level control of serial supply chains under fuzzy customer demand," International Journal of Production Economics, Elsevier, vol. 102(1), pages 37-50, July.
    3. Charles J. Corbett & Deming Zhou & Christopher S. Tang, 2004. "Designing Supply Contracts: Contract Type and Information Asymmetry," Management Science, INFORMS, vol. 50(4), pages 550-559, April.
    4. Petrovic, Dobrila & Roy, Rajat & Petrovic, Radivoj, 1999. "Supply chain modelling using fuzzy sets," International Journal of Production Economics, Elsevier, vol. 59(1-3), pages 443-453, March.
    5. Hsieh, Chung-Chi & Wu, Cheng-Han & Huang, Ya-Jing, 2008. "Ordering and pricing decisions in a two-echelon supply chain with asymmetric demand information," European Journal of Operational Research, Elsevier, vol. 190(2), pages 509-525, October.
    6. Lau, Amy Hing Ling & Lau, Hon-Shiang & Zhou, Yong-Wu, 2007. "A stochastic and asymmetric-information framework for a dominant-manufacturer supply chain," European Journal of Operational Research, Elsevier, vol. 176(1), pages 295-316, January.
    7. Yao, Jing-Shing & Chen, Miao-Sheng & Lu, Huei-Fu, 2006. "A fuzzy stochastic single-period model for cash management," European Journal of Operational Research, Elsevier, vol. 170(1), pages 72-90, April.
    8. R. Canan Savaskan & Luk N. Van Wassenhove, 2006. "Reverse Channel Design: The Case of Competing Retailers," Management Science, INFORMS, vol. 52(1), pages 1-14, January.
    9. Harish Krishnan & Roman Kapuscinski & David A. Butz, 2004. "Coordinating Contracts for Decentralized Supply Chains with Retailer Promotional Effort," Management Science, INFORMS, vol. 50(1), pages 48-63, January.
    10. Jie Wei & Jing Zhao & Yongjian Li, 2012. "Pricing Decisions For A Closed-Loop Supply Chain In A Fuzzy Environment," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 29(01), pages 1-30.
    11. Terry A. Taylor, 2002. "Supply Chain Coordination Under Channel Rebates with Sales Effort Effects," Management Science, INFORMS, vol. 48(8), pages 992-1007, August.
    12. Wong, Bo K. & Lai, Vincent S., 2011. "A survey of the application of fuzzy set theory in production and operations management: 1998-2009," International Journal of Production Economics, Elsevier, vol. 129(1), pages 157-168, January.
    13. Lau, Amy Hing Ling & Lau, Hon-Shiang, 2005. "Some two-echelon supply-chain games: Improving from deterministic-symmetric-information to stochastic-asymmetric-information models," European Journal of Operational Research, Elsevier, vol. 161(1), pages 203-223, February.
    14. Hsieh, Chung-Chi & Wu, Cheng-Han, 2008. "Capacity allocation, ordering, and pricing decisions in a supply chain with demand and supply uncertainties," European Journal of Operational Research, Elsevier, vol. 184(2), pages 667-684, January.
    15. Choi, Tsan-Ming & Li, Yongjian & Xu, Lei, 2013. "Channel leadership, performance and coordination in closed loop supply chains," International Journal of Production Economics, Elsevier, vol. 146(1), pages 371-380.
    16. Zhao, Jing & Tang, Wansheng & Wei, Jie, 2012. "Pricing decision for substitutable products with retail competition in a fuzzy environment," International Journal of Production Economics, Elsevier, vol. 135(1), pages 144-153.
    17. R. Canan Savaskan & Shantanu Bhattacharya & Luk N. Van Wassenhove, 2004. "Closed-Loop Supply Chain Models with Product Remanufacturing," Management Science, INFORMS, vol. 50(2), pages 239-252, February.
    18. Gérard P. Cachon & Martin A. Lariviere, 2005. "Supply Chain Coordination with Revenue-Sharing Contracts: Strengths and Limitations," Management Science, INFORMS, vol. 51(1), pages 30-44, January.
    19. Ravi Anupindi & Yehuda Bassok, 1999. "Centralization of Stocks: Retailers vs. Manufacturer," Management Science, INFORMS, vol. 45(2), pages 178-191, February.
    20. V. Daniel R. Guide, Jr. & Ruud H. Teunter & Luk N. Van Wassenhove, 2003. "Matching Demand and Supply to Maximize Profits from Remanufacturing," Manufacturing & Service Operations Management, INFORMS, vol. 5(4), pages 303-316, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ehsan Shekarian & Simme Douwe Flapper, 2021. "Analyzing the Structure of Closed-Loop Supply Chains: A Game Theory Perspective," Sustainability, MDPI, vol. 13(3), pages 1-32, January.
    2. Pietro De Giovanni & Georges Zaccour, 2022. "A selective survey of game-theoretic models of closed-loop supply chains," Annals of Operations Research, Springer, vol. 314(1), pages 77-116, July.
    3. Suvadarshini, Pinakhi & Biswas, Indranil & Srivastava, Samir K., 2023. "Impact of reverse channel competition, individual rationality, and information asymmetry on multi-channel closed-loop supply chain design," International Journal of Production Economics, Elsevier, vol. 259(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Liu, Wenjie & Liu, Wei & Shen, Ningning & Xu, Zhitao & Xie, Naiming & Chen, Jian & Zhou, Huiyu, 2022. "Pricing and collection decisions of a closed-loop supply chain with fuzzy demand," International Journal of Production Economics, Elsevier, vol. 245(C).
    2. Syed Asif Raza, 2022. "A bibliometric analysis of pricing models in supply chain," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 21(2), pages 228-251, April.
    3. Senlin Zhao & Qinghua Zhu, 2017. "Remanufacturing supply chain coordination under the stochastic remanufacturability rate and the random demand," Annals of Operations Research, Springer, vol. 257(1), pages 661-695, October.
    4. Matsui, Kenji, 2019. "A supply chain member should set its margin later if another member's cost is highly uncertain," European Journal of Operational Research, Elsevier, vol. 275(1), pages 127-138.
    5. Leng, Mingming & Zhu, An, 2009. "Side-payment contracts in two-person nonzero-sum supply chain games: Review, discussion and applications," European Journal of Operational Research, Elsevier, vol. 196(2), pages 600-618, July.
    6. Yang, Jian & Qi, Xiangtong, 2009. "On the design of coordinating contracts," International Journal of Production Economics, Elsevier, vol. 122(2), pages 581-594, December.
    7. Emad Sane-Zerang & Jafar Razmi & Ata Allah Taleizadeh, 2020. "Coordination in a closed-loop supply chain under asymmetric and symmetric information with sales effort-dependent demand," Journal of Business Economics, Springer, vol. 90(2), pages 303-334, March.
    8. Hong, I-Hsuan & Ammons, Jane C. & Realff, Matthew J., 2008. "Decentralized decision-making and protocol design for recycled material flows," International Journal of Production Economics, Elsevier, vol. 116(2), pages 325-337, December.
    9. Lin Chen & Jin Peng & Zhibing Liu & Ruiqing Zhao, 2017. "Pricing and effort decisions for a supply chain with uncertain information," International Journal of Production Research, Taylor & Francis Journals, vol. 55(1), pages 264-284, January.
    10. Maiti, T. & Giri, B.C., 2017. "Two-way product recovery in a closed-loop supply chain with variable markup under price and quality dependent demand," International Journal of Production Economics, Elsevier, vol. 183(PA), pages 259-272.
    11. Chirantan Mondal & Bibhas C. Giri, 2022. "Retailers’ competition and cooperation in a closed-loop green supply chain under governmental intervention and cap-and-trade policy," Operational Research, Springer, vol. 22(2), pages 859-894, April.
    12. Ghosh, Debabrata & Shah, Janat, 2012. "A comparative analysis of greening policies across supply chain structures," International Journal of Production Economics, Elsevier, vol. 135(2), pages 568-583.
    13. Xiaohua Han & Haiyan Wu & Qianxia Yang & Jennifer Shang, 2017. "Collection channel and production decisions in a closed-loop supply chain with remanufacturing cost disruption," International Journal of Production Research, Taylor & Francis Journals, vol. 55(4), pages 1147-1167, February.
    14. Hua Ke & Yong Wu & Hu Huang, 2018. "Competitive Pricing and Remanufacturing Problem in an Uncertain Closed-Loop Supply Chain with Risk-Sensitive Retailers," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 35(01), pages 1-21, February.
    15. Matsui, Kenji, 2022. "Optimal timing of acquisition price announcement for used products in a dual-recycling channel reverse supply chain," European Journal of Operational Research, Elsevier, vol. 300(2), pages 615-632.
    16. Hosseini-Motlagh, Seyyed-Mahdi & Choi, Tsan-Ming & Johari, Maryam & Nouri-Harzvili, Mina, 2022. "A profit surplus distribution mechanism for supply chain coordination: An evolutionary game-theoretic analysis," European Journal of Operational Research, Elsevier, vol. 301(2), pages 561-575.
    17. Lili Dai & Tong Shu & Shou Chen & Shouyang Wang & Kin Keung Lai, 2020. "CSR Remanufacturing Supply Chains under WTP Differentiation," Sustainability, MDPI, vol. 12(6), pages 1-19, March.
    18. Abhishek Srivastava & Abhishek Chakraborty & Arqum Mateen, 2022. "Role of power imbalance on channel coordination under greening investments," OPSEARCH, Springer;Operational Research Society of India, vol. 59(4), pages 1522-1554, December.
    19. Juhong Chen & Di Wu & Peng Li, 2018. "Research on the Pricing Model of the Dual-Channel Reverse Supply Chain Considering Logistics Costs and Consumers’ Awareness of Sustainability Based on Regional Differences," Sustainability, MDPI, vol. 10(7), pages 1-31, June.
    20. Hong, Xianpei & Xu, Lei & Du, Peng & Wang, Wenjuan, 2015. "Joint advertising, pricing and collection decisions in a closed-loop supply chain," International Journal of Production Economics, Elsevier, vol. 167(C), pages 12-22.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:annopr:v:257:y:2017:i:1:d:10.1007_s10479-016-2123-6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.