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Closed Loop Supply Chain under Power Configurations and Dual Competitions

Author

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  • Yang Liu

    (Department of Industrial Engineering, Tsinghua University, Beijing 100084, China)

  • Yang Zhang

    (Department of Industrial Engineering, Tsinghua University, Beijing 100084, China)

Abstract

This paper investigates pricing and collecting decisions in a closed loop supply chain (CLSC) under different power configurations and dual competitions. If the original equipment manufacturer (OEM) could sell products directly and collect used products, OEM has to compete with both forward retailer and reverse collector, simultaneously, and OEM possesses different bargaining powers. Specifically, we examine the following models: (1) M1: OEM holds the first position in both forward and reverse channels; (2) M2: OEM holds the first (second) position in the forward (reverse) channel; (3) M3: OEM holds the second position in both channels. We conduct a systematic comparison of forward competition, reverse competition and dual competitions across the above models. From the perspective of the entire supply chain, the outcome of model selection hinges on the extent of competition. If the competition is sufficient, two forward leaders will engage in a price battle which results in great losses for both. Then M1 is preferred. Otherwise, M3 outperforms.

Suggested Citation

  • Yang Liu & Yang Zhang, 2018. "Closed Loop Supply Chain under Power Configurations and Dual Competitions," Sustainability, MDPI, vol. 10(5), pages 1-23, May.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:5:p:1617-:d:147249
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    References listed on IDEAS

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    Cited by:

    1. Renzheng Xue & Fengbin Zhang & Feng Tian & Richard Oloruntoba & Shidi Miao, 2018. "Dual Chains Competition under Two Recycling Modes Based on System Dynamics Method," Sustainability, MDPI, vol. 10(7), pages 1-14, July.
    2. Fu, Lingxian & Tang, Jie & Meng, Fanyong, 2021. "A disease transmission inspired closed-loop supply chain dynamic model for product collection," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 152(C).
    3. 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.

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