The operation decisions of trade-in program in platform-based closed-loop supply chain under different sales modes

Zhaoqing Yu (), Yuyan Wang () and Xue Ji ()
Additional contact information
Zhaoqing Yu: Shandong Jianzhu University
Yuyan Wang: Shandong University of Finance and Economics
Xue Ji: Shandong Jianzhu University

Operational Research, 2025, vol. 25, issue 2, No 15, 40 pages

Abstract: Abstract Recycling platforms have combined with online sales channels to form the platform-based closed-loop supply chain (PB-CLSC), which realizes the combination of product sales and used product recycling through the trade-in program. This paper constructs decision-making models of trade-in program under different sales modes and comparatively analyzes the operation decisions. It is shown that the pricing decisions under the resale mode are the most unstable and may be the largest when the production cost is small. The direct mode has the lowest pricing and the largest demand for new products and recycling quantity of used products, but the demand for refurbished products is the lowest, making the refurbishment rate the lowest. The commission price markup mechanism of the agency mode leads to predatory pricing, which makes the pricing decisions the highest of the three sales modes when the production cost is large. While the direct sales mode can maximize the manufacturer’s profit and, under certain circumstances, also enhance the profitability of recycling platform, it suffers from the lowest refurbishment rate, which is not conducive to the circular economy. The pursuit of profit maximization by PB-CLSC firms often hinders them from achieving Pareto optimality, a balance between profit and environmental protection is imperative for stability. Notably, under specific conditions, the resale mode or the agency mode can foster the sustainability of PB-CLSC.

Keywords: Platform-based closed-loop supply chain; Trade-in program; Recycling platform; Sales mode (search for similar items in EconPapers)
Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s12351-025-00908-2 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:operea:v:25:y:2025:i:2:d:10.1007_s12351-025-00908-2

Ordering information: This journal article can be ordered from
https://www.springer ... search/journal/12351

DOI: 10.1007/s12351-025-00908-2

Access Statistics for this article

Operational Research is currently edited by Nikolaos F. Matsatsinis, John Psarras and Constantin Zopounidis

More articles in Operational Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().