Abstract
Manufacturing enterprises often face the problem of an increasing production cost per unit of output—that is, diseconomies of scale—due to technology or management ability. This paper examines the collection channel selection and coordination strategies of a dual-channel closed-loop supply chain (CLSC) in the presence of manufacturer diseconomies of scale. Decision models for a dual-channel CLSC with single- and dual-channel waste product collection are constructed from the perspectives of centralized and decentralized decision-making, and the effects of diseconomies of scale and sales/collection competition on the pricing of new products and the waste product collection rate are analyzed. Moreover, criteria for selecting a collection channel are given for CLSC members and the system as a whole, and two-part tariff contracts are designed to coordinate the dual-channel CLSC under different collection channels. We find that the optimal pricing decision and members’ profits are negatively correlated with diseconomies of scale and positively correlated with sales competition. Under the dual-channel sales structure, the direct sales volume is more than twice that of retail sales, the stronger the sales competition, the more pronounced this advantage is. Further, from the perspective of collection, when collection competition is weak, the dual-channel collection strategy is optimal, while as competition increases, the single-channel collection strategy may be better. The manufacturer’s collection rate is more than twice that of the retailer under dual-channel collection, and the stronger collection competition is, the larger this gap is. Finally, the conclusions are verified by numerical simulation, and management insights are proposed.
Highlights
With the large consumption of resources and increasing concerns over environmental protection, countries of the world are advocating the development of a green, lowcarbon and circular economy [1]-[3]
This paper focuses on the impact of diseconomies of scale on pricing decisions and collection and coordination strategies in a dual-channel supply chain and explores the optimal collection channel to mitigate the impact of diseconomies of scale
Two-part tariff contracts are designed to coordinate the closed-loop supply chain (CLSC) with different collection channels based on the optimal decision in the centralized model, and we identify the corresponding range of contract parameters
Summary
With the large consumption of resources and increasing concerns over environmental protection, countries of the world are advocating the development of a green, lowcarbon and circular economy [1]-[3]. In the following study, this paper attempts to explore effective ways to alleviate diseconomies of scale through the implementation of CLSCs. In the past few years, with the rapid development of ecommerce, many enterprises have adopted the dual-channel marketing model of direct sales and distribution in supply chains. Firms such as Apple, Lenovo, Haier and other large enterprises sell through traditional channels such as Suning, Gome and other retail stores and have established direct stores or ecommerce platforms to sell directly to consumers This helps reduce the dependence on traditional distributors and can develop new markets and enhance sensitivity to changes in consumer demand to alleviate adverse impacts of manufacturer diseconomies of scale and improve enterprise performance. The last part of this paper summarizes the research and points out shortcomings and further research directions
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