Abstract
In this paper, we examine the influences of vertical and horizontal cooperation models on the optimal decisions and performance of a low-carbon closed-loop supply chain (CLSC) with a manufacturer and two retailers, and study optimal operation in the competitive pricing, competitive the low-carbon promotion, the carbon emission reduction, the used-products collection and the profits. We consider the completely decentralized model, M-R vertical cooperation model, R-R horizontal cooperation model, M-R-R vertical and horizontal cooperation model and completely centralized model, and also identify the optimal decision results and profits. It can be observed from a systematic comparison and numerical analysis that the completely centralized model is best in all optimal decision results among all models. In semi-cooperation, the M-R vertical cooperation model is positive, the R-R horizontal cooperation model is passive, and the positivity of the M-R-R vertical and horizontal cooperation model decreases with competitive intensity increasing in the used-products returning, carbon emissions reduction level, low-carbon promotion effort and the profits of the manufacturer and the entire supply chain.
Highlights
In recent years, energy saving and environmental protection problems have been drawing the attention of global and national organizations
The main results and contributions of this paper may be summarized as follows: (i) we consider that two retailers set competitive pricing and low carbon promotion in the low-carbon closed-loop supply chain (CLSC); (ii) we consider that a vertical cooperation strategy of the manufacturer and retailers is implemented by the manufacturer by providing a subsidy for low-carbon product promotion to the retailers, and the horizontal cooperation strategy of the retailers is implemented by the retailers’ joint decision making; (iii) we suggest how the retailers should choose a cooperation strategy in a competitive environment
Theorem 5 indicates that the optimal retail price is smallest in the C Model but the optimal return rate, the carbon emissions level, the low-carbon promotion effort and the market demand are best among all models
Summary
Energy saving and environmental protection problems have been drawing the attention of global and national organizations. Res. Public Health 2017, 14, 1332 activities, some manufacturers exert collection efforts such as product design, process modification to facilitate recycling, reverse logistics services, employee-training programs, etc. Public Health 2017, 14, 1332 activities, some manufacturers exert collection efforts such as product design, process modification to facilitate recycling, reverse logistics services, employee-training programs, etc These activities reflect the environmentally responsible features of the firms and enhance their reputation, satisfying the environmental concerns of consumers and simplify their disposal process [4]. While considering the situation of retailers’ competition, research on the operational issues of CLSC will be of great significance To this end, we consider the low carbon CLSC with a manufacturer who directly collects used-products and reduces carbon emissions as well as two retailers who practice competitive pricing and low carbon promotion.
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