Alliance Decision of Supply Chain Considering Product Greenness and Recycling Competition

Yong Liu, Qian-qian Shi and Qian Xu
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Yong Liu: School of Business, Jiangnan University, Wuxi 214122, China
Qian-qian Shi: School of Business, Jiangnan University, Wuxi 214122, China
Qian Xu: School of Business, Jiangnan University, Wuxi 214122, China

Sustainability, 2019, vol. 11, issue 24, 1-24

Abstract: In a closed-loop supply chain (CLSC), the right alliance can help manufacturers better manufacture green products and make more profits. Choosing the most suitable alliance partner is also critical for manufacturers. In regard to product greenness and recycling competition, this paper considers the CLSC comprised of a dominant manufacturer, a retailer, and a third-party recycler. Based on the Stackelberg game and equilibrium analysis, we discuss the optimal supply chain decision-making under four different models. Then, in order to ensure supply chain (SC) members’ enthusiasm to participate in the alliance, we design a profit distribution method to distribute the total profit to SC members. The results show that manufacturer’s optimal alliance decision is related to the degree of recycling competition. When less than the threshold, C alliance(the manufacturer make an alliance with the retailer and the third-party recycler at the same time) is optimal, otherwise, MR alliance(the manufacturer and the retailer make an alliance ) is more beneficial for the manufacturer.

Keywords: greenness; recycling competition; closed-loop supply chain; alliance decisions (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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