Abstract
The aim of this paper is to choose the effective selling channel and reverse channel for a closed-loop supply chain (CLSC) with the e-commerce. The authors formulated six single-selling and dual-selling channel two-period CLSC models in which the manufacturer manufactures new products in the first period and then collects used products by itself, outsourcing to or cooperating with the retailer in the second period. Some interesting and new insights obtained from comparison analysis and numerical experiments are as follows: (1) The leading manufacturer ought to add e-commerce channel, and customers’ e-commerce preference can increase the market demand, collecting rate, and manufacturer’s profit. (2) With the e-commerce channel and the retail channel, dual-collecting channel is the best for the manufacturer and system while the manufacturer collecting channel becomes the best when the collecting competition is relatively large. When the collecting competition exists, retailer collecting channel is the best for the retailer. (3) The market demand, collecting rate, the profits of all members and system will rise by increasing the remanufacturing level and discount coefficient.
Highlights
The shortening life cycle and rapid technology innovation have greatly accelerated the updating speed of products in terms of function and appearance, leading to a sharp growth of such wastes as electronic devices, household appliances, and plastics [1]
To investigate the manufacturer’s selling channel and reverse channel design, this paper proposes a two-player closed-loop supply chain (CLSC) with two consecutive selling periods
Giovanni et al [25] extended [3] to a two-period framework taking into account reverse channel design from the environment and operation performance, which found that the manufacturer would outsource the collecting activity to the retailer or the third-party when they perform better in the environment and operation performance and outsource to the retailer when they have equal performance
Summary
The shortening life cycle and rapid technology innovation have greatly accelerated the updating speed of products in terms of function and appearance, leading to a sharp growth of such wastes as electronic devices, household appliances, and plastics [1]. As for dual reverse channel for self-recovery and outsourcing the retailer, Apple recycles used electronic products from its retailers and from consumers who send their used electronic products back to Apple, according to the prepaid shipping label generated by going to Apple’s official website; Adidas and Dell cooperate with their respective raw material suppliers; Coca-Cola ties up with the third-party recycler. It has been proven by many studies that the effective reverse channel varies under different business conditions [3,4,5,6,7,8,9].
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