Coordination strategies of dual channel closed-loop supply chain considering demand disruptions

Di Wu, Peng Li, Juhong Chen and Hao Wang

European Journal of Industrial Engineering, 2023, vol. 17, issue 4, 597-626

Abstract: From the perspective of emergency management, it is of great practical significance to study the effect of demand disruptions on the decisions of dual channel closed-loop supply chain. Firstly, based on Stackelberg game theory, this paper constructs and solves the game model of dual channel closed-loop supply chain in centralised and decentralised decision modes, and analyses the effect of positive and negative demand disruptions on the optimal decision and profit of enterprises. Secondly, the construction of revenue-cost sharing contract realises the coordination between online and offline channels. Finally, a numerical example is used to further explore the effects of the factors on the equilibrium solution. The results show that: 1) when the degree of demand disruptions is small, the decision has certain robustness; 2) when demand has a negative disruption, the manufacturer will consider helping the retailer to reduce the loss on the premise of giving priority to reducing its own profit loss. Such behaviour is a typical 'sharing joys but not sorrows'. [Submitted: 23 December 2021; Accepted: 30 April 2022]

Keywords: demand disruptions; dual channel closed-loop supply chain; recovery rate; pricing strategies; coordination strategies. (search for similar items in EconPapers)
Date: 2023
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