IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v7y2015i3p2373-2396d46202.html

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/7/3/2373/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/7/3/2373/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Seifert, Ralf W. & Thonemann, Ulrich W. & Hausman, Warren H., 2004. "Optimal procurement strategies for online spot markets," European Journal of Operational Research, Elsevier, vol. 152(3), pages 781-799, February.
    2. Cai, Gangshu (George) & Zhang, Zhe George & Zhang, Michael, 2009. "Game theoretical perspectives on dual-channel supply chain competition with price discounts and pricing schemes," International Journal of Production Economics, Elsevier, vol. 117(1), pages 80-96, January.
    3. Cai, Gangshu (George), 2010. "Channel Selection and Coordination in Dual-Channel Supply Chains," Journal of Retailing, Elsevier, vol. 86(1), pages 22-36.
    4. Dumrongsiri, Aussadavut & Fan, Ming & Jain, Apurva & Moinzadeh, Kamran, 2008. "A supply chain model with direct and retail channels," European Journal of Operational Research, Elsevier, vol. 187(3), pages 691-718, June.
    5. repec:ack:journl:y::id:50 is not listed on IDEAS
    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.
    7. Geng, Qin & Mallik, Suman, 2007. "Inventory competition and allocation in a multi-channel distribution system," European Journal of Operational Research, Elsevier, vol. 182(2), pages 704-729, October.
    8. Editorial Article, 0. "The Information for Authors," Economics of Contemporary Russia, Regional Public Organization for Assistance to the Development of Institutions of the Department of Economics of the Russian Academy of Sciences, issue 2.
    9. repec:ack:journl:y::id:144 is not listed on IDEAS
    10. Hua, Guowei & Wang, Shouyang & Cheng, T.C.E., 2010. "Price and lead time decisions in dual-channel supply chains," European Journal of Operational Research, Elsevier, vol. 205(1), pages 113-126, August.
    11. repec:ack:journl:y::id:108 is not listed on IDEAS
    12. Chiang, Wei-yu Kevin, 2010. "Product availability in competitive and cooperative dual-channel distribution with stock-out based substitution," European Journal of Operational Research, Elsevier, vol. 200(1), pages 111-126, January.
    13. Qiang, Qiang & Ke, Ke & Anderson, Trisha & Dong, June, 2013. "The closed-loop supply chain network with competition, distribution channel investment, and uncertainties," Omega, Elsevier, vol. 41(2), pages 186-194.
    14. Joseph Hall & Evan Porteus, 2000. "Customer Service Competition in Capacitated Systems," Manufacturing & Service Operations Management, INFORMS, vol. 2(2), pages 144-165, November.
    15. Georgiadis, Patroklos & Athanasiou, Efstratios, 2013. "Flexible long-term capacity planning in closed-loop supply chains with remanufacturing," European Journal of Operational Research, Elsevier, vol. 225(1), pages 44-58.
    16. Fernando Bernstein & Awi Federgruen, 2004. "A General Equilibrium Model for Industries with Price and Service Competition," Operations Research, INFORMS, vol. 52(6), pages 868-886, December.
    17. Yan, Ruiliang & Pei, Zhi, 2009. "Retail services and firm profit in a dual-channel market," Journal of Retailing and Consumer Services, Elsevier, vol. 16(4), pages 306-314.
    18. R. Canan Savaskan & Luk N. Van Wassenhove, 2006. "Reverse Channel Design: The Case of Competing Retailers," Management Science, INFORMS, vol. 52(1), pages 1-14, January.
    19. repec:ack:journl:y::id:220 is not listed on IDEAS
    20. Yao, Dong-Qing & Liu, John J., 2005. "Competitive pricing of mixed retail and e-tail distribution channels," Omega, Elsevier, vol. 33(3), pages 235-247, June.
    21. Wei Hu & Yongjian Li, 2012. "Retail service for mixed retail and E-tail channels," Annals of Operations Research, Springer, vol. 192(1), pages 151-171, January.
    22. Chen, Jing & Bell, Peter C., 2012. "Implementing market segmentation using full-refund and no-refund customer returns policies in a dual-channel supply chain structure," International Journal of Production Economics, Elsevier, vol. 136(1), pages 56-66.
    23. Teunter, Ruud H. & Flapper, Simme Douwe P., 2011. "Optimal core acquisition and remanufacturing policies under uncertain core quality fractions," European Journal of Operational Research, Elsevier, vol. 210(2), pages 241-248, April.
    24. 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.
    25. Kurata, Hisashi & Yao, Dong-Qing & Liu, John J., 2007. "Pricing policies under direct vs. indirect channel competition and national vs. store brand competition," European Journal of Operational Research, Elsevier, vol. 180(1), pages 262-281, July.
    26. repec:ack:journl:y::id:91 is not listed on IDEAS
    27. Editorial Article, 0. "The Information for Authors," Economics of Contemporary Russia, Regional Public Organization for Assistance to the Development of Institutions of the Department of Economics of the Russian Academy of Sciences, issue 1.
    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. Huihui Liu & Xiaohang Yue & Hui Ding & G. Keong Leong, 2017. "Optimal Remanufacturing Certification Contracts in the Electrical and Electronic Industry," Sustainability, MDPI, vol. 9(4), pages 1-17, March.
    2. 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.
    3. 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.
    4. 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.
    5. 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.
    6. 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.
    7. 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.
    8. 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.
    9. 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.
    10. 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.
    11. 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.
    12. 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.
    13. 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.
    14. 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.
    15. 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.
    16. 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).
    17. 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.

    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. Xu, Guangye & Dan, Bin & Zhang, Xumei & Liu, Can, 2014. "Coordinating a dual-channel supply chain with risk-averse under a two-way revenue sharing contract," International Journal of Production Economics, Elsevier, vol. 147(PA), pages 171-179.
    2. Matsui, Kenji, 2017. "When should a manufacturer set its direct price and wholesale price in dual-channel supply chains?," European Journal of Operational Research, Elsevier, vol. 258(2), pages 501-511.
    3. 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.
    4. Fariba Soleimani & Alireza Arshadi Khamseh & Bahman Naderi, 2016. "Optimal decisions in a dual-channel supply chain under simultaneous demand and production cost disruptions," Annals of Operations Research, Springer, vol. 243(1), pages 301-321, August.
    5. Matsui, Kenji, 2020. "Optimal bargaining timing of a wholesale price for a manufacturer with a retailer in a dual-channel supply chain," European Journal of Operational Research, Elsevier, vol. 287(1), pages 225-236.
    6. Ciwei Dong & Liu Yang & Chi To Ng, 2020. "Quantity Leadership for a Dual-Channel Supply Chain with Retail Service," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 37(02), pages 1-32, March.
    7. Chen, Jingxian & Liang, Liang & Yao, Dong-Qing & Sun, Shengnan, 2017. "Price and quality decisions in dual-channel supply chains," European Journal of Operational Research, Elsevier, vol. 259(3), pages 935-948.
    8. Syed Asif Raza, 2022. "A bibliometric analysis of pricing models in supply chain," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 21(2), pages 228-251, April.
    9. Matsui, Kenji, 2022. "Optimal timing of acquisition price announcement for used products in a dual-recycling channel reverse supply chain," European Journal of Operational Research, Elsevier, vol. 300(2), pages 615-632.
    10. Ding, Qing & Dong, Ciwei & Pan, Zhicong, 2016. "A hierarchical pricing decision process on a dual-channel problem with one manufacturer and one retailer," International Journal of Production Economics, Elsevier, vol. 175(C), pages 197-212.
    11. Zhang, Linghong & Wang, Jingguo, 2017. "Coordination of the traditional and the online channels for a short-life-cycle product," European Journal of Operational Research, Elsevier, vol. 258(2), pages 639-651.
    12. Guoxuan Huang & Qing Ding & Ciwei Dong & Zhicong Pan, 2021. "Joint optimization of pricing and inventory control for dual-channel problem under stochastic demand," Annals of Operations Research, Springer, vol. 298(1), pages 307-337, March.
    13. Zhang Guoxing & Fang Shuai & Lai Kin Keung, 2015. "Game Analysis in a Dual Channels System with Different Power Structures and Service Provision," Journal of Systems Science and Information, De Gruyter, vol. 3(6), pages 513-524, December.
    14. 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.
    15. 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.
    16. Hamed Jafari & Seyed Reza Hejazi & Morteza Rasti-Barzoki, 2016. "Pricing Decisions in Dual-Channel Supply Chain Including Monopolistic Manufacturer and Duopolistic Retailers: A Game-Theoretic Approach," Journal of Industry, Competition and Trade, Springer, vol. 16(3), pages 323-343, September.
    17. Juhong Chen & Di Wu & Peng Li, 2018. "Research on the Pricing Model of the Dual-Channel Reverse Supply Chain Considering Logistics Costs and Consumers’ Awareness of Sustainability Based on Regional Differences," Sustainability, MDPI, vol. 10(7), pages 1-31, June.
    18. Huang, Song & Yang, Chao & Liu, Hui, 2013. "Pricing and production decisions in a dual-channel supply chain when production costs are disrupted," Economic Modelling, Elsevier, vol. 30(C), pages 521-538.
    19. Lee, Hsiao-Hui & Chang, Tingkai & Jean, Kevin & Kuo, Chia-Wei, 2022. "Channel design and OEM growth in a multi-market setup," European Journal of Operational Research, Elsevier, vol. 296(3), pages 862-872.
    20. Qiongqiong Gu & Xiaodong Yang & Bin Liu, 2020. "Pricing Decisions on Online Channel Entry for Complementary Products in a Dominant Retailer Supply Chain," Sustainability, MDPI, vol. 12(12), pages 1-24, June.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:7:y:2015:i:3:p:2373-2396:d:46202. 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 The email address of this maintainer does not seem to be valid anymore. Please ask MDPI Indexing Manager to update the entry or send us the correct address (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.