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Investigating different reverse channels in a closed-loop supply chain: a power perspective

Author

Listed:
  • Hadi Sahebi

    (Iran University of Science and Technology)

  • Shayan Ranjbar

    (Iran University of Science and Technology)

  • Ashkan Teymouri

    (Iran University of Science and Technology)

Abstract

This study investigates reverse channel choice for a bi-level closed-loop supply chain consisting of a manufacturer and a retailer. In the forward channel, the manufacturer sells the products through the retailer. We consider three collection channels to collect end-of-use products for the reverse channel: (1) retailer collection (R model), (2) manufacturer and retailer hybrid collection (MRH model), and (3) manufacturer and retailer competitive collection (MRC model). This study considers both manufacturer leadership and retailer leadership for all these three models. After obtaining the members' optimal decisions in the different models using backward induction, the models were applied to a vacuum cleaner company's data in Iran. A comparison of these models shows that the retailer leadership was better than the manufacturer leadership. From the manufacturer leadership perspective, the MRH model is the best one. From the retailer leadership perspective, the prices, the retailer collection rate, and the retail profit are the same in the R and MRH models, while the total collection rate and the total yield are more extensive in the MRH model than in the R model. The MRH model is better than the MRC model at any competition intensity. Moreover, this study indicates that the range of competition intensity between two collection channels in which the MRC model outperforms the R model is different under the retailer leadership and the manufacturer leadership. The results of this study can be used as a reference for reverse channel selection. Finally, we perform a sensitivity analysis for the model parameters.

Suggested Citation

  • Hadi Sahebi & Shayan Ranjbar & Ashkan Teymouri, 2022. "Investigating different reverse channels in a closed-loop supply chain: a power perspective," Operational Research, Springer, vol. 22(3), pages 1939-1985, July.
    • Handle: RePEc:spr:operea:v:22:y:2022:i:3:d:10.1007_s12351-021-00645-2
    DOI: 10.1007/s12351-021-00645-2
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    References listed on IDEAS

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    Cited by:

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    2. Hong Sun & Yan Li, 2023. "Optimal Acquisition and Production Policies for Remanufacturing with Quality Grading," Mathematics, MDPI, vol. 11(7), pages 1-21, March.

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