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Retail Services and Pricing Decisions in a Closed-Loop Supply Chain with Remanufacturing

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  • Zhen-Zheng Zhang

    (School of Management, Huazhong University of Science and Technology, Wuhan 430074, China)

  • Zong-Jun Wang

    (School of Management, Huazhong University of Science and Technology, Wuhan 430074, China)

  • Li-Wen Liu

    (School of Management, Huazhong University of Science and Technology, Wuhan 430074, China)

Abstract

Environmental and social responsibilities have led many manufacturers to used products recovery. Meanwhile, many manufacturers nowadays sell products via indirect retailer channels and direct Internet channels. This paper models a dual-channel closed-loop supply chain to improve the sustainability of products. We apply the two-stage optimization technique and the Nash game to examine the impacts of the retail services and the degree of customer loyalty to the retail channel on the pricing of players in a centralized and a decentralized dual-channel supply chain. Our results show that the retail services have a great impact on the manufacturer and the retailer’s pricing strategies. We also compare the differences of pricing strategies between a centralized and a decentralized dual-channel supply chain and suggest the optimal retail services and pricing decisions for the players in the supply chain.

Suggested Citation

  • Zhen-Zheng Zhang & Zong-Jun Wang & Li-Wen Liu, 2015. "Retail Services and Pricing Decisions in a Closed-Loop Supply Chain with Remanufacturing," Sustainability, MDPI, vol. 7(3), pages 1-24, February.
    • Handle: RePEc:gam:jsusta:v:7:y:2015:i:3:p:2373-2396:d:46202
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    Cited by:

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    2. Quanxi Li & Haowei Zhang & Kailing Liu, 2021. "Research on Closed-Loop Supply Chain Decision-Making in Different Cooperation Modes with Government’s Reward-Penalty Mechanism," Sustainability, MDPI, vol. 13(11), pages 1-22, June.
    3. Yucai Wu & Jiguang Wang & Changhong Li, 2019. "Decisions of Supply Chain Considering Chain-to-Chain Competition and Service Negative Spillover Effect," Sustainability, MDPI, vol. 11(6), pages 1-19, March.
    4. Kai Liu & Chunfa Li & Runde Gu, 2021. "Pricing and Logistics Service Decisions in Platform-Led Electronic Closed-Loop Supply Chain with Remanufacturing," Sustainability, MDPI, vol. 13(20), pages 1-28, October.
    5. Yadong Shu & Ying Dai & Zujun Ma, 2019. "Pricing Decisions in Closed-Loop Supply Chains with Peer-Induced Fairness Concerns," Sustainability, MDPI, vol. 11(18), pages 1-19, September.
    6. Luttiely Santos Oliveira & Ricardo Luiz Machado, 2021. "Application of optimization methods in the closed-loop supply chain: a literature review," Journal of Combinatorial Optimization, Springer, vol. 41(2), pages 357-400, February.
    7. Huihui Liu & Xiaolin Wu & Desheng Dou & Xu Tang & G. Keong Leong, 2018. "Determining Recycling Fees and Subsidies in China’s WEEE Disposal Fund with Formal and Informal Sectors," Sustainability, MDPI, vol. 10(9), pages 1-14, August.
    8. Yucai Wu & Jiguang Wang & Lu Chen, 2021. "Optimization and Decision of Supply Chain Considering Negative Spillover Effect and Service Competition," Sustainability, MDPI, vol. 13(4), pages 1-20, February.
    9. Shizhen Bai & Ling Ge & Xuelian Zhang, 2022. "Platform or direct channel: government-subsidized recycling strategies for WEEE," Information Systems and e-Business Management, Springer, vol. 20(2), pages 347-369, June.
    10. Muhammad Arshad & Qazi Salman Khalid & Jaime Lloret & Antonio Leon, 2018. "An Efficient Approach for Coordination of Dual-Channel Closed-Loop Supply Chain Management," Sustainability, MDPI, vol. 10(10), pages 1-20, September.
    11. Jiafu Su & Chi Li & Sang-Bing Tsai & Hui Lu & Aijun Liu & Quan Chen, 2018. "A Sustainable Closed-Loop Supply Chain Decision Mechanism in the Electronic Sector," Sustainability, MDPI, vol. 10(4), pages 1-15, April.
    12. Yuan, Yanhong & Yang, Jinyao & Li, Yang & Li, Wei, 2020. "Necessary conditions for coordination of dual-channel closed-loop supply chain," Technological Forecasting and Social Change, Elsevier, vol. 151(C).
    13. 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.
    14. Yan Liu & Yongsheng Cheng & Hong Chen & Sidai Guo & Yujia Lu, 2018. "Selling Remanufactured Products under One Roof or Two? A Sustainability Analysis on Channel Structures for New and Remanufactured Products," Sustainability, MDPI, vol. 10(7), pages 1-20, July.
    15. Seyed Jafar Sadjadi & Hashem Asadi & Ramin Sadeghian & Hadi Sahebi, 2018. "Retailer Stackelberg game in a supply chain with pricing and service decisions and simple price discount contract," PLOS ONE, Public Library of Science, vol. 13(4), pages 1-24, April.
    16. Shan Chen & Xu Wang & Yingbo Wu & Fuli Zhou, 2017. "Pricing Policies of a Dual-Channel Supply Chain Considering Channel Environmental Sustainability," Sustainability, MDPI, vol. 9(3), pages 1-14, March.
    17. Zongsheng Huang & Jiajia Nie & Sang-Bing Tsai, 2017. "Dynamic Collection Strategy and Coordination of a Remanufacturing Closed-Loop Supply Chain under Uncertainty," Sustainability, MDPI, vol. 9(5), pages 1-18, April.

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