Pricing decisions in closed-loop supply chains with marketing effort and fairness concerns

Peng Ma, Kevin W. Li and Zhou-Jing Wang

International Journal of Production Research, 2017, vol. 55, issue 22, 6710-6731

Abstract: We investigate closed-loop supply chains (CLSCs) under four reverse channel structures where a central planner, a manufacturer (M), a retailer (R) or a third party (T), respectively, serves as the collector of used product and demand depends on R’s marketing effort. We derive supply chain profitability under both the centralised and decentralised CLSCs and furnish the optimal marketing effort, collection rate and pricing decisions for the supply chain members. We then extend the base models along two directions: the first extension incorporates R’s distributional fairness concerns into the M collection model and the second extension considers potential recycle cost advantages by R and T compared to the M collection model.

Date: 2017
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Citations: View citations in EconPapers (43)

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DOI: 10.1080/00207543.2017.1346324

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