Game-theoretic analysis in an environment-friendly competitive closed-loop dual-channel supply chain with recycling

Brojeswar Pal () and Shib Sankar Sana ()
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Brojeswar Pal: The University of Burdwan
Shib Sankar Sana: Ramkrishna Sarani

Operations Management Research, 2022, vol. 15, issue 3, No 2, 627-646

Abstract: Abstract The closed-loop supply chain has an immense significance on the business policy of the next day’s world. This article appraises a closed-loop dual-channel supply chain of the returned used product and fresh materials. In the proposed circular economical modelling, the retailer collects the consumers’ obsolete products by paying satisfactory rewards and then sends the screened materials to the manufacturer for the production process. The manufacturer produces environmentally friendly greening products by using recycled items and fresh materials, where the manufacturer, alone or together with the retailer, can adjust the green innovation level. Two parallel competitive channels sell the products in the market where the manufacturer introduces a direct channel to sell them through an online contract with the consumers, and the retailer operates the traditional market for his business. The demand patterns of the players are sensitive with selling prices and green innovation level of the products and then a mathematical model is formulated and analysed in light of the decentralized scenarios for various manufacturer Stackelberg, Retailer Stackelberg, vertical Nash games, and the centralized system. The main aims of the proposed model is to investigate both the analytically and numerically the selling prices, rewards for obsolete items, and green innovation levels under different frameworks for the players’ best strategies. The analysis of the proposed model emphasizes on the impact of green innovation cost, production cost, screening acceptance ratios, and how to enhance the willingness to return factor, greening factor, and respective profits.

Keywords: Green Supply Chain; Closed-loop; Dual channel; Recycling; Green innovation; Stackelberg game; Price sensitivity (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s12063-021-00221-z

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