Research on the Supply Chain Buy-Back Modes Based on the Consumer's Strategic Returns with the Competition

Abstract

In this study, we have a research on the supply chain buy-back modes based on the consumer’s strategic returns with the competition. In the supply chain with the manufacturer and two competing retailers, discuss the three supply chain buy-back modes focusing on the consumer’s strategic returns from the point of the manufacturers: the manufacturers repurchasing the return products through the retailers; the manufacturers repurchasing the return products directly; the asymmetric return repurchasing mode. By analyzing the three models, the manufacturers’ and two retailers’ optimal decision and the optimal profits are obtained, which provides the suggestions for the members to choose the right supply chain buy-back mode. The results show that: in the different buy back mode, the players’ profits in the supply chain are different; the choice of the buyback modes depends on the consumers’ return rate, the proportion of the customers choosing to return and the repurchasing price, but the asymmetric buy back mode is nonoptimal mode. Finally, the numerical analysis strongly supports the conclusions in the study.