IDEAS home Printed from https://ideas.repec.org/a/pal/jorsoc/v65y2014i1p88-96.html
   My bibliography  Save this article

An incentive model for closed-loop supply chain under the EPR law

Author

Listed:
  • X Li

    (Nankai University, Tianjin, People's Republic of China)

  • Y Li

    (Nankai University, Tianjin, People's Republic of China)

  • K Govindan

    (University of Southern Denmark, Odense, Denmark)

Abstract

Motivated by the collection outsourcing phenomena under Extended Producer Responsibility (EPR), this paper studies a contract design problem for a manufacturer who consigns the used product collection to a collector, while the manufacturer only has incomplete information on the collector's cost. On the basis of the incentive theory, optimal contracts are developed to minimize the cost and satisfy the collection constraints prescribed by EPR. Properties of the contract parameters are derived, and issues such as information rent and information value are also explored. The impacts of EPR are analysed by comparing whether or not EPR law is implemented, and more managerial insights are further obtained through numerical examples.

Suggested Citation

  • X Li & Y Li & K Govindan, 2014. "An incentive model for closed-loop supply chain under the EPR law," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 65(1), pages 88-96, January.
    • Handle: RePEc:pal:jorsoc:v:65:y:2014:i:1:p:88-96
    as

    Download full text from publisher

    File URL: http://www.palgrave-journals.com/jors/journal/v65/n1/pdf/jors2012179a.pdf
    File Function: Link to full text PDF
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: http://www.palgrave-journals.com/jors/journal/v65/n1/full/jors2012179a.html
    File Function: Link to full text HTML
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tsan-Ming Choi & Ya-Jun Cai, 2020. "Impacts of lead time reduction on fabric sourcing in apparel production with yield and environmental considerations," Annals of Operations Research, Springer, vol. 290(1), pages 521-542, July.
    2. Pietro De Giovanni & Georges Zaccour, 2022. "A selective survey of game-theoretic models of closed-loop supply chains," Annals of Operations Research, Springer, vol. 314(1), pages 77-116, July.
    3. Devika Kannan & Kiran Garg & P. C. Jha & Ali Diabat, 2017. "Integrating disassembly line balancing in the planning of a reverse logistics network from the perspective of a third party provider," Annals of Operations Research, Springer, vol. 253(1), pages 353-376, June.
    4. Shen, Bin & Choi, Tsan-Ming & Chan, Hau-Ling, 2019. "Selling green first or not? A Bayesian analysis with service levels and environmental impact considerations in the Big Data Era," Technological Forecasting and Social Change, Elsevier, vol. 144(C), pages 412-420.
    5. Ghosh, Debabrata & Gouda, Sirish & Shankar, Ravi & Swami, Sanjeev & Thomas, Vinu Cheruvil, 2018. "Strategic decision making under subscription-based contracts for remanufacturing," International Journal of Production Economics, Elsevier, vol. 200(C), pages 134-150.
    6. Seyyed-Mahdi Hosseini-Motlagh & Mona Jazinaninejad & Nazanin Nami, 2022. "Coordinating a socially concerned reverse supply chain for pharmaceutical waste management considering government role," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(2), pages 1852-1877, February.
    7. Xiaojiao Qiao & Xiukun Zhao & Jinhui Zou, 2021. "Remanufacturing Marketing Decisions in the Presence of Retailing Platforms in the Carbon Neutrality Era," IJERPH, MDPI, vol. 19(1), pages 1-18, December.
    8. Choi, Tsan-Ming & Chow, Pui-Sze & Lee, Chang Hwan & Shen, Bin, 2018. "Used intimate apparel collection programs: A game-theoretic analytical study," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 109(C), pages 44-62.
    9. Gunasekara, Lahiru & Robb, David J. & Zhang, Abraham, 2023. "Used product acquisition, sorting and disposition for circular supply chains: Literature review and research directions," International Journal of Production Economics, Elsevier, vol. 260(C).
    10. Deepak Singhal & Sarat Kumar Jena & Satyabrata Aich & Sushanta Tripathy & Hee-Cheol Kim, 2021. "Remanufacturing for Circular Economy: Understanding the Impact of Manufacturer’s Incentive under Price Competition," Sustainability, MDPI, vol. 13(21), pages 1-19, October.
    11. 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.
    12. Pietro Giovanni & Georges Zaccour, 2019. "A selective survey of game-theoretic models of closed-loop supply chains," 4OR, Springer, vol. 17(1), pages 1-44, March.
    13. Yongjian Li & Qianzhou Deng & Chi Zhou & Lipan Feng, 2020. "Environmental governance strategies in a two-echelon supply chain with tax and subsidy interactions," Annals of Operations Research, Springer, vol. 290(1), pages 439-462, July.
    14. Song, Malin & Fisher, Ron & Kwoh, Yusen, 2019. "Technological challenges of green innovation and sustainable resource management with large scale data," Technological Forecasting and Social Change, Elsevier, vol. 144(C), pages 361-368.
    15. Liu, Baolong & Papier, Felix, 2022. "Remanufacturing of multi-component systems with product substitution," European Journal of Operational Research, Elsevier, vol. 301(3), pages 896-911.
    16. Sung Wook Yoon & Suk Jae Jeong, 2016. "Implementing Coordinative Contracts between Manufacturer and Retailer in a Reverse Supply Chain," Sustainability, MDPI, vol. 8(9), pages 1-15, September.

    More about this item

    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:pal:jorsoc:v:65:y:2014:i:1:p:88-96. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.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.