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Design of contract parameters in a closed-loop supply chain

Author

Listed:
  • Imre Dobos

    ()

  • Barbara Gobsch

    ()

  • Nadezhda Pakhomova

    ()

  • Grigory Pishchulov

    ()

  • Knut Richter

    ()

Abstract

We study an extended joint economic lot size problem which incorporates the return flow of remanufacturable used products. The supply chain under consideration consists of a single supplier and a single buyer. The buyer orders a single product from the supplier, uses it for her own needs, and collects the remanufacturable items after use. The ordered items are shipped from the supplier to the buyer in the lot-for-lot fashion by a vehicle which also returns the collected used items from the buyer to the supplier for remanufacturing and subsequent service of the buyer’s demand in the next order cycle. For satisfying the total demand, the supplier manufactures new items or remanufactures used ones received from the buyer. For given demand, productivity, collection rate, disposal cost, setup cost, order cost, holding cost for serviceable and nonserviceable products at the supplier as well as the buyer the lot size (order size) for the supplier (buyer) has to be found which minimizes the total cost. Furthermore, we address a decentralised decision making of the parties under a two-part tariff and determine their equilibrium strategies within the Nash framework. Copyright Springer-Verlag Berlin Heidelberg 2013

Suggested Citation

  • Imre Dobos & Barbara Gobsch & Nadezhda Pakhomova & Grigory Pishchulov & Knut Richter, 2013. "Design of contract parameters in a closed-loop supply chain," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 21(4), pages 713-727, December.
  • Handle: RePEc:spr:cejnor:v:21:y:2013:i:4:p:713-727
    DOI: 10.1007/s10100-013-0308-5
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    References listed on IDEAS

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    1. L. Beril Toktay & Lawrence M. Wein & Stefanos A. Zenios, 2000. "Inventory Management of Remanufacturable Products," Management Science, INFORMS, vol. 46(11), pages 1412-1426, November.
    2. Robert J. Dolan, 1987. "Quantity Discounts: Managerial Issues and Research Opportunities," Marketing Science, INFORMS, vol. 6(1), pages 1-22.
    3. Reyniers, Diane J., 2001. "The effect of vertical integration on consumer price in the presence of inventory costs," European Journal of Operational Research, Elsevier, vol. 130(1), pages 83-89, April.
    4. Dobos, Imre & Gobsch, Barbara & Pakhomova, Nadezhda & Pishchulov, Grigory & Richter, Knut, 2011. "A vendor-purchaser economic lot size problem with remanufacturing and deposit," Discussion Papers 304, European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics.
    5. 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.
    6. Luo, Yadong, 2005. "Toward coopetition within a multinational enterprise: a perspective from foreign subsidiaries," Journal of World Business, Elsevier, vol. 40(1), pages 71-90, February.
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    8. Sucky, Eric, 2006. "A bargaining model with asymmetric information for a single supplier-single buyer problem," European Journal of Operational Research, Elsevier, vol. 171(2), pages 516-535, June.
    9. Rajeev Kohli & Heungsoo Park, 1989. "A Cooperative Game Theory Model of Quantity Discounts," Management Science, INFORMS, vol. 35(6), pages 693-707, June.
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    Cited by:

    1. Tibor Csendes & Tibor Jordán & Tamás Szántai, 2013. "Editorial," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 21(4), pages 663-664, December.

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