Incentive strategies for an optimal recovery program in a closed-loop supply chain

Pietro De Giovanni, Puduru V. Reddy and Georges Zaccour

European Journal of Operational Research, 2016, vol. 249, issue 2, 605-617

Abstract: We consider a dynamic closed-loop supply chain made up of one manufacturer and one retailer, with both players investing in a product recovery program to increase the rate of return of previously purchased products. End-of use product returns have two impacts. First, they lead to a decrease in the production cost, as manufacturing with used parts is cheaper than using virgin materials. Second, returns boost sales through replacement items.

Keywords: Closed-loop supply chain; Coordination; Incentive strategies; Pricing; Product recovery programs (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (61)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:249:y:2016:i:2:p:605-617

DOI: 10.1016/j.ejor.2015.09.021

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