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Triple Recycling Channel Strategies for Remanufacturing of Construction Machinery in a Retailer-Dominated Closed-Loop Supply Chain

Author

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  • Min Huang

    (School of Mechanical Science & Engineering, Huazhong University of Science & Technology, Wuhan 430074, China
    Institute of Systems Engineering, China Academy of Engineering Physics, Mianyang 621900, China)

  • Pengxing Yi

    (School of Mechanical Science & Engineering, Huazhong University of Science & Technology, Wuhan 430074, China)

  • TieLin Shi

    (School of Mechanical Science & Engineering, Huazhong University of Science & Technology, Wuhan 430074, China)

Abstract

Firms engaged in remanufacturing activities generally adopt more than one recycling channel to collect more used products and gain more profits. This paper explores the optimal strategies for a retailer-dominated closed-loop supply chain (CLSC) with a triple recycling channel in the construction machinery remanufacturing context. In this special system, the retailer is the leader and authorized by the original equipment manufacturer (OEM) to remanufacture. Moreover, the OEM, the retailer, and the secondary market all take part in the used products collection activities. Considering the differentiation of the OEM, the retailer, and the secondary market in collecting the used construction machinery, a mathematical model of the CLSC system based on reasonable assumptions is built, the closed-form optimal pricing decisions are derived, and the optimal collection efforts allocation strategies are explored within the framework of the game theory. In addition, the impacts of the reverse logistics cost coefficient, the competing coefficient, and the buy-back price coefficient on the supply chain performance are elaborately analyzed. These achievements provide decision makers with managerial insights and offer efficient guidelines for the construction machinery remanufacturing firms to solve similar puzzles.

Suggested Citation

  • Min Huang & Pengxing Yi & TieLin Shi, 2017. "Triple Recycling Channel Strategies for Remanufacturing of Construction Machinery in a Retailer-Dominated Closed-Loop Supply Chain," Sustainability, MDPI, vol. 9(12), pages 1-19, December.
    • Handle: RePEc:gam:jsusta:v:9:y:2017:i:12:p:2167-:d:121063
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    References listed on IDEAS

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    Cited by:

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    2. Sungki Kim & Nina Shin & Sangwook Park, 2020. "Closed-Loop Supply Chain Coordination under a Reward–Penalty and a Manufacturer’s Subsidy Policy," Sustainability, MDPI, vol. 12(22), pages 1-28, November.
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    4. Linan Zhou & Gengui Zhou & Hangying Li & Jian Cao, 2023. "Channel Selection of Closed-Loop Supply Chain for Scrapped Agricultural Machines Remanufacturing," Sustainability, MDPI, vol. 15(6), pages 1-30, March.
    5. Wei Yan & Hengyu Li & Junwu Chai & Zhifeng Qian & Hong Chen, 2018. "Owning or Outsourcing? Strategic Choice on Take-Back Operations for Third-Party Remanufacturing," Sustainability, MDPI, vol. 10(1), pages 1-18, January.
    6. Sadok Turki & Nidhal Rezg, 2018. "Impact of the Quality of Returned-Used Products on the Optimal Design of a Manufacturing/Remanufacturing System under Carbon Emissions Constraints," Sustainability, MDPI, vol. 10(9), pages 1-21, September.
    7. Haoxuan Zheng & Xingwei Li & Xiaowen Zhu & Yicheng Huang & Zhili Liu & Yuxin Liu & Jiaxin Liu & Xiangye Li & Yuejia Li & Chunhui Li, 2022. "Impact of Recycler Information Sharing on Supply Chain Performance of Construction and Demolition Waste Resource Utilization," IJERPH, MDPI, vol. 19(7), pages 1-22, March.

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