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Managing channel profit and total surplus in a closed-loop supply chain network

Author

Listed:
  • Sarat Kumar Jena
  • Abhijeet Ghadge
  • S P Sarmah

Abstract

Today’s government is interested in the product recovery programme in order to encourage sustainability. The research develops four closed-loop supply chain models by considering different scenarios for the governmental subsidies and fees under price-sensitive demand. Analytical results suggest that the government should provide subsidies to the manufacturer to maximise channel profit and total surplus. Higher subsidies advocates a manufacturer’s intention to lean towards remanufacturing activities under given manufacturing and consumption fees scenarios. The sensitivity analysis reveals that the total surplus and channel profit increases as subsidies increase in all closed-loop supply chain models.

Suggested Citation

  • Sarat Kumar Jena & Abhijeet Ghadge & S P Sarmah, 2018. "Managing channel profit and total surplus in a closed-loop supply chain network," Journal of the Operational Research Society, Taylor & Francis Journals, vol. 69(9), pages 1345-1356, September.
    • Handle: RePEc:taf:tjorxx:v:69:y:2018:i:9:p:1345-1356
    DOI: 10.1080/01605682.2017.1392408
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    Cited by:

    1. Wei Duan & Hengli Cao & Desheng Xu, 2023. "Research on the Impact of New Parts Price Increase on the Stability of Closed-Loop Supply Chain," Sustainability, MDPI, vol. 15(16), pages 1-24, August.
    2. Haitao Chen & Zhaohui Dong & Gendao Li, 2020. "Government Reward-Penalty Mechanism in Dual-Channel Closed-Loop Supply Chain," Sustainability, MDPI, vol. 12(20), pages 1-15, October.
    3. Wang, Zhen & Duan, Yongrui & Huo, Jiazhen, 2022. "The impact of government intervention measures on recycling of waste electrical and electronic equipment in China considering consumer decision," Energy Policy, Elsevier, vol. 160(C).
    4. Li, Wei & Wang, Peilin & Cheng, Wencheng & Nie, Kai, 2024. "Transnational remanufacturing decisions under carbon taxes and tariffs," European Journal of Operational Research, Elsevier, vol. 312(1), pages 150-163.
    5. Renbang Shan & Li Luo & Baoli Shi, 2023. "The choice of recycling strategies for decision-makers based on government subsidy and service budget," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(2), pages 1441-1472, February.
    6. Rezayat, Mohammad Reza & Yaghoubi, Saeed & Fander, Atieh, 2021. "The impact of government intervention in competitive electronic closed-loop supply chain to support internal industry," Resources Policy, Elsevier, vol. 74(C).
    7. Suchitra Pattnaik & Mitali Madhusmita Nayak & Stefano Abbate & Piera Centobelli, 2021. "Recent Trends in Sustainable Inventory Models: A Literature Review," Sustainability, MDPI, vol. 13(21), pages 1-20, October.

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