Pricing and Logistics Service Decisions in Platform-Led Electronic Closed-Loop Supply Chain with Remanufacturing

Kai Liu, Chunfa Li and Runde Gu
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Kai Liu: School of Management, Tianjin University of Technology, Tianjin 300384, China
Chunfa Li: School of Management, Tianjin University of Technology, Tianjin 300384, China
Runde Gu: School of Management, Tianjin University of Technology, Tianjin 300384, China

Sustainability, 2021, vol. 13, issue 20, 1-28

Abstract: With the continuous development of e-commerce, it has become normal for the manufacturer to sell products and to collect used products through e-commerce platforms (platform for short). We consider an electronic closed-loop supply chain (E-CLSC) where we composed a manufacturer with remanufacturing capability and a platform that can provide logistics services. The purpose of this paper is to address whether the manufacturer should directly collect used products from the consumer under the platform. Specifically, we have developed four game models, namely model N (no collection), model M (the manufacturer collects), model E (the platform collects), and model T (the third-party collects) and derived the optimal pricing decisions, logistics service level, and collection rate for E-CLSC members. We found that remanufacturing used products is conducive to increasing the profits of the manufacturer and the platform as well as to increasing the utility of the consumer. Under the same conditions, for the manufacturer, the platform, and the consumer, the optimal choice is that the manufacturer directly collects the used products from the consumer. If the manufacturer is unable to establish an effective collection channel, he should consider outsourcing to a contractor and should consider the platform to be under the same conditions. Numerical examples are also given to verify the proposed results.

Keywords: electronic closed-loop supply chain (E-CLSC); e-commerce platform; remanufacturing; Stackelberg game; pricing and logistics service decisions (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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