IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i16p12587-d1220596.html
   My bibliography  Save this article

Research on the Impact of New Parts Price Increase on the Stability of Closed-Loop Supply Chain

Author

Listed:
  • Wei Duan

    (School of Economics and Management, Inner Mongolia University of Technology, Hohhot 010051, China
    Inner Mongolia Management Modernization Research Center, Hohhot 010051, China)

  • Hengli Cao

    (School of Economics and Management, Inner Mongolia University of Technology, Hohhot 010051, China
    Inner Mongolia Management Modernization Research Center, Hohhot 010051, China)

  • Desheng Xu

    (School of Economics and Management, Inner Mongolia University of Technology, Hohhot 010051, China
    Inner Mongolia Management Modernization Research Center, Hohhot 010051, China)

Abstract

In the closed-loop supply chain system of component remanufacturing, new parts suppliers are likely to be affected by certain factors that lead to sudden increases in supply prices, and this sudden increase in new parts prices may trigger the chain collapse of the closed-loop supply chain system and impact the stability of the closed-loop supply chain. Therefore, this paper combines closed-loop supply chain theory, evolutionary game theory, and system dynamics theory, which are internalized to construct a complex system model. Furthermore, the impact of different price increases of new parts on the stability of the closed-loop supply chain is analyzed through scenario simulation. The results show that a 25% increase in the price of new parts will delay the time for remanufacturers and retailers to reach a stable state of product flow, reduce the profitability of remanufacturers and retailers, and inhibit the willingness of remanufacturers to carry out high-green production in the early stage. A 50% increase in the price of new parts can break the closed-loop supply chain from the remanufacturer, severely undermining the stability of the closed-loop supply. According to the simulation results, this paper presents a timely government dynamic reward and punishment optimization scheme for remanufacturers to improve the tolerance level of the closed-loop supply chain for the price increase of new parts and to provide a reference for enhancing the stability of the closed-loop supply chain and optimizing the government supervision strategy.

Suggested Citation

  • Wei Duan & Hengli Cao & Desheng Xu, 2023. "Research on the Impact of New Parts Price Increase on the Stability of Closed-Loop Supply Chain," Sustainability, MDPI, vol. 15(16), pages 1-24, August.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:16:p:12587-:d:1220596
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/16/12587/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/16/12587/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Giutini, Ron & Gaudette, Kevin, 2003. "Remanufacturing: The next great opportunity for boosting US productivity," Business Horizons, Elsevier, vol. 46(6), pages 41-48.
    2. Daniel Friedman, 1998. "On economic applications of evolutionary game theory," Journal of Evolutionary Economics, Springer, vol. 8(1), pages 15-43.
    3. Yenipazarli, Arda, 2016. "Managing new and remanufactured products to mitigate environmental damage under emissions regulation," European Journal of Operational Research, Elsevier, vol. 249(1), pages 117-130.
    4. Qian-wang Deng & Hao-lan Liao & Bo-wen Xu & Xia-hui Liu, 2017. "The Resource Benefits Evaluation Model on Remanufacturing Processes of End-of-Life Construction Machinery under the Uncertainty in Recycling Price," Sustainability, MDPI, vol. 9(2), pages 1-21, February.
    5. V. Daniel R. Guide & Terry P. Harrison & Luk N. Van Wassenhove, 2003. "The Challenge of Closed-Loop Supply Chains," Interfaces, INFORMS, vol. 33(6), pages 3-6, December.
    6. Friedman, Daniel, 1991. "Evolutionary Games in Economics," Econometrica, Econometric Society, vol. 59(3), pages 637-666, May.
    7. Efthymios Katsoras & Patroklos Georgiadis, 2022. "A Dynamic Analysis for Mitigating Disaster Effects in Closed Loop Supply Chains," Sustainability, MDPI, vol. 14(9), pages 1-20, April.
    8. Wei, Shouke & Yang, Hong & Song, Jinxi & Abbaspour, Karim C. & Xu, Zongxue, 2012. "System dynamics simulation model for assessing socio-economic impacts of different levels of environmental flow allocation in the Weihe River Basin, China," European Journal of Operational Research, Elsevier, vol. 221(1), pages 248-262.
    9. Xiong, Yu & Zhao, Quanwu & Zhou, Yu, 2016. "Manufacturer-remanufacturing vs supplier-remanufacturing in a closed-loop supply chain," International Journal of Production Economics, Elsevier, vol. 176(C), pages 21-28.
    10. Sarat Kumar Jena & Abhijeet Ghadge & S P Sarmah, 2018. "Managing channel profit and total surplus in a closed-loop supply chain network," Journal of the Operational Research Society, Taylor & Francis Journals, vol. 69(9), pages 1345-1356, September.
    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. Xin Lu & Fangchao Xu & Fan Qin, 2024. "Remanufacturing Operations in Different Financial Ownership Structures with Consideration of the Upwards Supplier," Sustainability, MDPI, vol. 16(8), pages 1-21, April.

    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. Zongbao Zou & Cong Wang & Qinjia Zhong, 2022. "How Does Retailer-Oriented Remanufacturing Affect the OEM’s Quality Choice?," Sustainability, MDPI, vol. 14(13), pages 1-21, June.
    2. Liu, Zhi & Li, Kevin W. & Li, Bang-Yi & Huang, Jun & Tang, Juan, 2019. "Impact of product-design strategies on the operations of a closed-loop supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 124(C), pages 75-91.
    3. Jin, Tao & Jiang, Yulian & Liu, Xingwen, 2023. "Evolutionary game analysis of the impact of dynamic dual credit policy on new energy vehicles after subsidy cancellation," Applied Mathematics and Computation, Elsevier, vol. 440(C).
    4. Xiongwei Quan & Gaoshan Zuo & Helin Sun, 2022. "Risk Perception Thresholds and Their Impact on the Behavior of Nearby Residents in Waste to Energy Project Conflict: An Evolutionary Game Analysis," Sustainability, MDPI, vol. 14(9), pages 1-20, May.
    5. Zhuozhuo Gou & Yansong Deng, 2021. "Dynamic Model of Collaboration in Multi-Agent System Based on Evolutionary Game Theory," Games, MDPI, vol. 12(4), pages 1-19, October.
    6. Fisher, Eric ON. & Kakkar, Vikas, 2004. "On the evolution of comparative advantage in matching models," Journal of International Economics, Elsevier, vol. 64(1), pages 169-193, October.
    7. Faggini, Marisa & Parziale, Anna, 2011. "Fitness landscape and tax planning: NK model for fiscal federalism," MPRA Paper 33770, University Library of Munich, Germany.
    8. Wu, Xiaole & Zhou, Yu, 2019. "Buyer-specific versus uniform pricing in a closed-loop supply chain with third-party remanufacturing," European Journal of Operational Research, Elsevier, vol. 273(2), pages 548-560.
    9. Matthew McGinty, 2010. "International Environmental Agreements as Evolutionary Games," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 45(2), pages 251-269, February.
    10. Kyung Sung Jung & Milind Dawande & H. Neil Geismar & V. Daniel R. Guide & Chelliah Sriskandarajah, 2016. "Supply planning models for a remanufacturer under just-in-time manufacturing environment with reverse logistics," Annals of Operations Research, Springer, vol. 240(2), pages 533-581, May.
    11. Dijkstra, Bouwe R. & de Vries, Frans P., 2006. "Location choice by households and polluting firms: An evolutionary approach," European Economic Review, Elsevier, vol. 50(2), pages 425-446, February.
    12. Tong Shu & Qian Liu & Shou Chen & Shouyang Wang & Kin Keung Lai, 2018. "Pricing Decisions of CSR Closed-Loop Supply Chains with Carbon Emission Constraints," Sustainability, MDPI, vol. 10(12), pages 1-25, November.
    13. Kuechle, Graciela, 2011. "Persistence and heterogeneity in entrepreneurship: An evolutionary game theoretic analysis," Journal of Business Venturing, Elsevier, vol. 26(4), pages 458-471, July.
    14. Qianwen Wu & Qiangqiang Wang & Yongwu Dai, 2023. "Analysis of Strategy Selection in Third-Party Governance of Rural Environmental Pollution," Sustainability, MDPI, vol. 15(11), pages 1-19, May.
    15. Weisheng Deng, 2019. "Does Remanufacturing Always Benefit the Manufacturer and Hurt the Supplier?," Sustainability, MDPI, vol. 11(6), pages 1-13, March.
    16. Jie Jin & Jun Zhuang & Qiuhong Zhao, 2018. "Supervision after Certification: An Evolutionary Game Analysis for Chinese Environmental Labeled Enterprises," Sustainability, MDPI, vol. 10(5), pages 1-22, May.
    17. Qiao, Haike & Su, Qin, 2021. "Distribution channel and licensing strategy choice considering consumer online reviews in a closed-loop supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 151(C).
    18. Yingxia Xue & Fang Liu & Guangbin Wang & Jungang Shao, 2023. "Research on Strategy Evolution of Contractor and Resident in Construction Stage of Old Community Renovation Project," Sustainability, MDPI, vol. 15(2), pages 1-20, January.
    19. Serdar Ş. Güner, 2004. "Aegean Territorial Waters Conflict: An Evolutionary Narrative," Conflict Management and Peace Science, Peace Science Society (International), vol. 21(4), pages 297-312, September.
    20. Ling Cao & Jie Yin, 2023. "Research on Sharing Behavior Strategy of Cultural Heritage Institutions Based on Evolutionary Game Theory," Sustainability, MDPI, vol. 15(13), pages 1-23, June.

    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:gam:jsusta:v:15:y:2023:i:16:p:12587-:d:1220596. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.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.