Multi-leadership in Closed Loop Supply Chain Based on Dual-channel

Abstract

With the implementation of the Expanded Production Responsibility Framework (EPR) and the lack of resources, people turned their attention to the closed-loop supply chain (CLSC) as a solution. In the practical application of the closed-loop supply chain, companies have adopted a dual-channel sales model for online direct sales and offline retail sales. Based on the actual situation, this paper establishes three Stackelberg leader CLSC models with three-echelon, based on the dual-channel models. These models includes manufacturer-led dual-channel CLSC, retailer-led dual-channel CLSC, collector-led dual-channel CLSC and centralized CLSC. This paper is aimed to find out the optimal solution on each various Stackelberg leading models. Unlike expectations, collector-led dual-channel CLSC is not so good as other models, it even can’t lead to high collection effort. The customers’ preference to online supply chain increases in certain range, which can make excellent performance of total dual-channel supply chain. In addition, too much preference of online sales in manufacturer-led dual-channel can lead to only existence of online sales.