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Pricing and greening strategies for a dual-channel closed-loop green supply chain

Author

Listed:
  • C. Mondal

    (Jadavpur University)

  • B. C. Giri

    (Jadavpur University)

  • T. Maiti

    (Gurudas College)

Abstract

This article considers a closed-loop green supply chain with both forward and reverse dual-channels, where a manufacturer produces and sells a single green product to the potential customers through both the direct online channel (e-tail/internet) and the traditional retail channel in the forward dual-channel, and collects the used products for remanufacturing from the customers through both the retail and the direct online channels in the reverse dual-channel (Model II). The pricing and greening strategies for the channel members and the whole supply chain are derived both analytically and numerically under centralized and three decentralized scenarios viz. manufacturer-led and retailer-led decentralized scenarios and Nash game. These results are compared with those in the case when reverse logistic does not exist (Model I). Two special cases are examined when the products are returned through only online channel and only retail channel. Sensitivity analysis is performed to explore the effect of key model-parameters on optimal decisions. From numerical analysis, it is observed that the retail price in the centralized scenario is higher than that in the decentralized scenario, which contradicts the result due to double marginalization, and the retailer-led decentralized policy provides higher profit than the other decentralized policies. Model II gives better result in terms of profit of the whole supply chain, whereas Model I suggests a more environment-friendly product. It is also observed that the channel members gain more profit when the retailer only collects the used products.

Suggested Citation

  • C. Mondal & B. C. Giri & T. Maiti, 2020. "Pricing and greening strategies for a dual-channel closed-loop green supply chain," Flexible Services and Manufacturing Journal, Springer, vol. 32(3), pages 724-761, September.
    • Handle: RePEc:spr:flsman:v:32:y:2020:i:3:d:10.1007_s10696-019-09355-6
    DOI: 10.1007/s10696-019-09355-6
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    Cited by:

    1. Brojeswar Pal & Shib Sankar Sana, 2022. "Game-theoretic analysis in an environment-friendly competitive closed-loop dual-channel supply chain with recycling," Operations Management Research, Springer, vol. 15(3), pages 627-646, December.
    2. Shuiwang Zhang & Qianlan Ding & Jingcheng Ding, 2023. "Return Strategy of E-Commerce Platform Based on Green and Sustainable Development," Sustainability, MDPI, vol. 15(14), pages 1-18, July.
    3. Chirantan Mondal & Bibhas C. Giri & Sanjib Biswas, 2022. "Integrating Corporate Social Responsibility in a closed-loop supply chain under government subsidy and used products collection strategies," Flexible Services and Manufacturing Journal, Springer, vol. 34(1), pages 65-100, March.
    4. 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.

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