Abstract
The recycling of waste products can sharply save manufacturing cost and improve the economic efficiency and corporate-reputation. It also has a great effect on the environment and resources protection. In the management of the closed-loop supply chain, the recycling of waste products and decision-making on pricing often directly affect the supply and demand of products and the operation efficiency of supply chain. Therefore, first we take waste glass bottles as an example and establish a mathematical model to solve the profit of manufacturers and retailers solely. Then, we analyzed whole supply chain profit under a dual-channel recycling condition which is directly recycled by consumers or by retailers. Finally, we concluded that no matter what product’s price, quality, profit, or operational efficiency of supply chain is, the overall recycling is better than the single node recycling model. Based on the analysis, we developed a new model to coordinate the profit of manufacturers and retailers in the supply chain with revenue-sharing contract. A numerical study shows that this approach is applicable and effective.
Highlights
With the development of science and technology and consciousness growth of limited resource, the reuse of resources has been widely concerned
Waste glass product in a Chinese city is more than 7 million tons each year, accounting for 3%–5% of the total municipal waste
Household waste glass bottles can be handled together with other types of garbage; part of them will be melted in high-temperature, to make the building materials with coal cinder; the other part will be transported to the landfill
Summary
With the development of science and technology and consciousness growth of limited resource, the reuse of resources has been widely concerned. Govindan et al [3] have made a review of recently published papers and proposed that utilizing new approaches and applying greener, sustainable, and environmental objectives can be the future directions in reverse logistic Under both joint and individual productions with different cost structures, Lu et al [4] proposed that different firms can cooperate in their recycling and pricing decisions using cooperative game theory to maximize total profit. For dual-channel sales and dual-channel recovery in loop supply chain, Hao [15] established a tripartite game model which included manufacturers, retailers, and third-party recycling enterprise and analyzed and verified the coordination mechanism of compensation contract and cost sharing contract for the supply chain system. This research can help the corporation to combine their own conditions to plan recycling channels or make recycling decisions
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
