Abstract
The recycling and remanufacturing of e-waste is linked to a worldwide emphasis on the establishment and implementation of Extended Producer Responsibility system (ERP), which has become an important problem in the process of cycling economy. Meanwhile, with the development and expansion of large-scale retail enterprises, the power structure of supply chain channels is showing a tendency towards diversity as well. However, few studies on closed-loop supply chains (CLSC) have considered both recycling modes and channel power structures. We aim to explore the influence of different recycling modes and channel power structures on the optimal decisions and performance of a closed-loop supply chain (CLSC), considering three recycling channels including manufacturer recycling, retailer recycling and hybrid recycling of retailer and manufacturer and two dominant modes including manufacturer-led and retailer-led. We construct six closed-loop supply chain models under different combinations of three recycling channels and two dominant modes. We analyze the effect of different recycling channels on company decision-making under the same dominant mode, whether participating in recycling has an impact on company decision-making under different dominant modes, and the effect on supply chain members and supply chain system under different dominant modes and recycling channels. The results show that the hybrid recycling strategy is always optimal for both supply chain members; the sub-optimal recycling strategies are both recycled by the subordinate enterprise, and the worst recycling strategies are both recycled by the leading enterprise. Moreover, it is always the worst strategy for manufacturer to participate in a closed-loop supply chain dominated by retailer and recycled by retailer; participating in a closed-loop supply chain dominated by manufacturer and recycled by manufacturer is always the worst strategy for retailer. From a system point of view, system efficiency is the highest under hybrid recycling, and system efficiency is the lowest if leading company recycles separately.
Highlights
The rapid development of electronic and information technology has promoted the upgrading of electrical and electronic products, which has shortened the lifespan of those products (Islam et al [1])
According to “Global E-waste Monitor 2017” (Baldé et al [3]), 44.7 million metric tonnes (Mt) of e-waste was generated in the world and only 20% was recycled through appropriate channels in 2016
Change in channel power structure of the closed-loop supply chains (CLSC) may significantly impact the optimal choice of recycling modes to participating enterprises
Summary
The rapid development of electronic and information technology has promoted the upgrading of electrical and electronic products, which has shortened the lifespan of those products (Islam et al [1]). Change in channel power structure of the CLSC may significantly impact the optimal choice of recycling modes to participating enterprises. In this context, several questions naturally arise:. Few studies on CLSCs have considered both recycling modes and channel power structures, especially the hybrid recycling of retailer and manufacturer under different channel power structures. To answer these questions, this study constructs a two-echelon CLSC composed of a single manufacturer and a single retailer. To examine the impact of different channel power structures on the Sustainability 2019, 11, 6413 optimal choices of CLSC members, each recycling model will be explored in manufacturer-led and retailer-led scenarios respectively. All proofs of this study are given in the Appendices A–D
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