Retail Services and Pricing Decisions in a Closed-Loop Supply Chain with Remanufacturing

Zhen-Zheng Zhang, Zong-Jun Wang and Li-Wen Liu
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Zhen-Zheng Zhang: School of Management, Huazhong University of Science and Technology, Wuhan 430074, China
Zong-Jun Wang: School of Management, Huazhong University of Science and Technology, Wuhan 430074, China
Li-Wen Liu: School of Management, Huazhong University of Science and Technology, Wuhan 430074, China

Sustainability, 2015, vol. 7, issue 3, 1-24

Abstract: Environmental and social responsibilities have led many manufacturers to used products recovery. Meanwhile, many manufacturers nowadays sell products via indirect retailer channels and direct Internet channels. This paper models a dual-channel closed-loop supply chain to improve the sustainability of products. We apply the two-stage optimization technique and the Nash game to examine the impacts of the retail services and the degree of customer loyalty to the retail channel on the pricing of players in a centralized and a decentralized dual-channel supply chain. Our results show that the retail services have a great impact on the manufacturer and the retailer’s pricing strategies. We also compare the differences of pricing strategies between a centralized and a decentralized dual-channel supply chain and suggest the optimal retail services and pricing decisions for the players in the supply chain.

Keywords: closed-loop supply chain; dual-channel; remanufacturing; retail services; pricing strategy (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

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