IDEAS home Printed from
   My bibliography  Save this article

Dual-channel closed-loop supply chain with government consumption-subsidy


  • Ma, Wei-min
  • Zhao, Zhang
  • Ke, Hua


The government has been acting as an important role in the formation and operation of closed-loop supply chain. This paper focuses on how consumption-subsidy influences dual-channel closed-loop supply chain. After introducing government consumption-subsidy program and dual-channel closed-loop supply chain, the paper analyzes the channel members’ decisions before and after the government-funded program performance, respectively. Finally, influence of consumption-subsidy has been considered from the consumers, the scale of closed-loop supply chain and the enterprises perspectives, which provides an important basis for our propositions. The key propositions of the paper are listed as follows: All the consumers that purchase the new products are beneficiaries of the government consumption-subsidy in varying degrees; the consumption-subsidy is conducive to the expansion of closed-loop supply chain; both the manufacturer and the retailer are beneficiaries of the consumption-subsidy, while the e-tailer benefits or not is uncertain.

Suggested Citation

  • Ma, Wei-min & Zhao, Zhang & Ke, Hua, 2013. "Dual-channel closed-loop supply chain with government consumption-subsidy," European Journal of Operational Research, Elsevier, vol. 226(2), pages 221-227.
  • Handle: RePEc:eee:ejores:v:226:y:2013:i:2:p:221-227
    DOI: 10.1016/j.ejor.2012.10.033

    Download full text from publisher

    File URL:
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL:
    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

    1. Roland Geyer & Luk N. Van Wassenhove & Atalay Atasu, 2007. "The Economics of Remanufacturing Under Limited Component Durability and Finite Product Life Cycles," Management Science, INFORMS, vol. 53(1), pages 88-100, January.
    2. Kevin Chiang, Wei-yu & Monahan, George E., 2005. "Managing inventories in a two-echelon dual-channel supply chain," European Journal of Operational Research, Elsevier, vol. 162(2), pages 325-341, April.
    3. Kyle Cattani & Wendell Gilland & Hans Sebastian Heese & Jayashankar Swaminathan, 2006. "Boiling Frogs: Pricing Strategies for a Manufacturer Adding a Direct Channel that Competes with the Traditional Channel," Production and Operations Management, Production and Operations Management Society, vol. 15(1), pages 40-56, March.
    4. Laurens G. Debo & L. Beril Toktay & Luk N. Van Wassenhove, 2005. "Market Segmentation and Product Technology Selection for Remanufacturable Products," Management Science, INFORMS, vol. 51(8), pages 1193-1205, August.
    5. 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.
    6. Wei-yu Kevin Chiang & Dilip Chhajed & James D. Hess, 2003. "Direct Marketing, Indirect Profits: A Strategic Analysis of Dual-Channel Supply-Chain Design," Management Science, INFORMS, vol. 49(1), pages 1-20, January.
    Full references (including those not matched with items on IDEAS)

    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. Tianqin Shi & Dilip Chhajed & Zhixi Wan & Yunchuan Liu, 2020. "Distribution Channel Choice and Divisional Conflict in Remanufacturing Operations," Production and Operations Management, Production and Operations Management Society, vol. 29(7), pages 1702-1719, July.
    2. Cheng-Han Wu, 2021. "Production-quality policy for a make-from-stock remanufacturing system," Flexible Services and Manufacturing Journal, Springer, vol. 33(2), pages 425-456, June.
    3. Ma, Peng & Gong, Yeming & Mirchandani, Prakash, 2020. "Trade-in for remanufactured products: Pricing with double reference effects," International Journal of Production Economics, Elsevier, vol. 230(C).
    4. Fan, Xiaojun & Guo, Xin & Wang, Shanshan, 2022. "Optimal collection delegation strategies in a retail-/dual-channel supply chain with trade-in programs," European Journal of Operational Research, Elsevier, vol. 303(2), pages 633-649.
    5. Raza, Syed Asif & Govindaluri, Srikrishna Madhumohan, 2019. "Pricing strategies in a dual-channel green supply chain with cannibalization and risk aversion," Operations Research Perspectives, Elsevier, vol. 6(C).
    6. Matsui, Kenji, 2016. "Asymmetric product distribution between symmetric manufacturers using dual-channel supply chains," European Journal of Operational Research, Elsevier, vol. 248(2), pages 646-657.
    7. Duan, Housheng & Deng, Sijing & Song, Haiqing & Xu, Jiayan, 2021. "The impacts of sales efforts and mode of payment on the competition between agent and retailer," Omega, Elsevier, vol. 103(C).
    8. Zhou, Qin & Meng, Chao & Yuen, Kum Fai & Sheu, Jiuh-Biing, 2021. "Remanufacturing authorization strategy for an original equipment manufacturer-contract manufacturer supply chain: Cooperation or competition?," International Journal of Production Economics, Elsevier, vol. 240(C).
    9. Yan, Yingchen & Zhao, Ruiqing & Liu, Zhibing, 2018. "Strategic introduction of the marketplace channel under spillovers from online to offline sales," European Journal of Operational Research, Elsevier, vol. 267(1), pages 65-77.
    10. Liu, Yan & Shi, Hongyan & Petruzzi, Nicholas C., 2018. "Optimal quality and quantity provisions for centralized vs. decentralized distribution: Market size uncertainty effects," European Journal of Operational Research, Elsevier, vol. 265(3), pages 1144-1158.
    11. Fuqiang Zhang & Renyu Zhang, 2018. "Trade-in Remanufacturing, Customer Purchasing Behavior, and Government Policy," Manufacturing & Service Operations Management, INFORMS, vol. 20(4), pages 601-616, October.
    12. Borenich, Andrea & Dickbauer, Yanick & Reimann, Marc & Souza, Gilvan C., 2020. "Should a manufacturer sell refurbished returns on the secondary market to incentivize retailers to reduce consumer returns?," European Journal of Operational Research, Elsevier, vol. 282(2), pages 569-579.
    13. Gan, Shu-San & Pujawan, I. Nyoman & Suparno, & Widodo, Basuki, 2017. "Pricing decision for new and remanufactured product in a closed-loop supply chain with separate sales-channel," International Journal of Production Economics, Elsevier, vol. 190(C), pages 120-132.
    14. Ze-Bin Wang & Yao-Yu Wang & Jian-Cai Wang, 2016. "Optimal distribution channel strategy for new and remanufactured products," Electronic Commerce Research, Springer, vol. 16(2), pages 269-295, June.
    15. 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.
    16. De Giovanni, Pietro & Zaccour, Georges, 2019. "Optimal quality improvements and pricing strategies with active and passive product returns," Omega, Elsevier, vol. 88(C), pages 248-262.
    17. Li, Sijie & Jia, Dongfeng & Zheng, Bin, 2022. "The manufacturer’s trade-in partner choice and pricing in the presence of collection platforms," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 168(C).
    18. Yang Liu & Yang Zhang, 2018. "Closed Loop Supply Chain under Power Configurations and Dual Competitions," Sustainability, MDPI, vol. 10(5), pages 1-23, May.
    19. Zu-Jun Ma & Qin Zhou & Ying Dai & Gao-Feng Guan, 2018. "To License or Not to License Remanufacturing Business?," Sustainability, MDPI, vol. 10(2), pages 1-21, January.
    20. Genc, Talat S. & Giovanni, Pietro De, 2017. "Trade-in and save: A two-period closed-loop supply chain game with price and technology dependent returns," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 514-527.


    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:eee:ejores:v:226:y:2013:i:2:p:221-227. 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: Catherine Liu (email available below). General contact details of provider: .

    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.