A Sustainable Closed-Loop Supply Chain Decision Mechanism in the Electronic Sector

Jiafu Su, Chi Li, Sang-Bing Tsai, Hui Lu, Aijun Liu and Quan Chen
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Jiafu Su: Chongqing Key Laboratory of Electronic Commerce & Supply Chain System, Chongqing Technology and Business University, Chongqing 400067, China
Chi Li: The State Key Laboratory of Mechanical Transmission, Chongqing University, Chongqing 400032, China
Sang-Bing Tsai: Zhongshan Institute, University of Electronic Science and Technology of China, No. 1, Xueyuan Road, Zhongshan 528400, Guangdong, China
Hui Lu: Tianhua College, Shanghai Normal University, Shanghai 201815, China
Aijun Liu: Department of Management Engineering, School of Economics & Management, Xidian University, Xi’an 710071, Shaanxi, China
Quan Chen: Zhongshan Institute, University of Electronic Science and Technology of China, No. 1, Xueyuan Road, Zhongshan 528400, Guangdong, China

Sustainability, 2018, vol. 10, issue 4, 1-15

Abstract: In a closed-loop supply chain for electronic products, the manufacturer’s priority is to enhance the residual value of the collected end-of-use product and decide whether to outsource this business to a retailer, a third-party service, or retain it exclusively. In this paper, we constructed three models to study the decision mechanism in a closed-loop supply chain, with different players selected to collect the used product. By comparing the three models, we characterized the conditions under which the manufacturer will benefit most, and we then aimed to determine the best choice for the manufacturer. Our findings show that, when the retailer and the third-party service provider provide equal performance in collecting the used product, the manufacturer will give priority to the third-party service provider if they choose to outsource this business. If the reverse flows managed by the retailer result in a higher payoff for the manufacturer, then the manufacturer will choose to outsource this business to the retailer who will also benefit.

Keywords: closed-loop supply chain; decision mechanism; Stackelberg game; sustainability decision-making (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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