Abstract
We study a closed-loop supply chain involving e-retailer’s online marketplace (i.e., platform service) and self-run shop, which are available options for upstream manufacturer to market new and remanufactured products. Considering the platform fee and the order fulfilment cost, we investigate four distribution channel modes, and obtain decision regions and corresponding optimal decisions for supply chain members. Furthermore, based on theoretical and numerical analyses, impacts of the platform fee and the order fulfilment cost on optimal decisions and performance of the supply chain are investigated. Our results indicate that the two parameters show different impacts on supply chain decisions under different channel modes. We also find that the preferred channel mode changes with the two parameters from the perspective of the manufacturer or the e-retailer, the preferred channel mode is only determined by the order fulfilment cost from the perspective of consumers, and selling the new product through the e-retailer and the remanufactured product in the online marketplace is more preferred from the perspective of the environment.
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