Trade-in strategies in retail channel and dual-channel closed-loop supply chain with remanufacturing

Lu Xiao, Xian-Jia Wang and Kwai-Sang Chin

Transportation Research Part E: Logistics and Transportation Review, 2020, vol. 136, issue C

Abstract: To derive conditions for manufacturer and retailer to implement trade-in policies voluntarily and identify the optimal channel format for trade-in, we construct traditional retail channel model and dual-channel model under two scenarios: without trade-in and with trade-in. We find that the retailer would implement trade-in policy voluntarily in traditional retail channel only if old customers’ market share exceeds a certain threshold. Interestingly, the result is opposite in dual-channel case. The traditional retail channel and the dual-channel could be the optimal choice for implementing trade-in respectively, depending on different value ranges of customers’ acceptance of direct online channel.

Keywords: Trade-in; Dual-channel; Remanufacturing; Closed-loop supply chain (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (18)

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DOI: 10.1016/j.tre.2020.101898

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