Abstract

The optimal pricing of dual-channel supply chain with the third party product recovery and sales effort is considered in this paper. The optimal selling pricing of direct channel and retail channel in the forward supply chain and the optimal collection pricing of retail channel and the third party in the backward supply chain are given for the general case under the centralized and decentralized model. Then, the effect of sales effort of the retailer and the optimal pricing strategy with sales effort under the centralized and decentralized model are provided and analyzed. Finally, the comparative analysis of four situations is carried out by numerical results.

Highlights

  • In order to improve the utilization rate of resources and reduce environmental pollution, many enterprises are engaged in remanufacturing [1,2,3,4]

  • Due to changes in consumer shopping habits and the environmental protection consciousness enhancement, more and more enterprises would see the remanufacturing as a strategy to expand market share, and many companies have established a remanufacturing system [6,7,8,9,10,11,12]

  • Based on the above analysis, this paper aims to study the optimal pricing of the dual-channel supply chain with the third-party product recovery and sales effort

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Summary

Introduction

In order to improve the utilization rate of resources and reduce environmental pollution, many enterprises are engaged in remanufacturing [1,2,3,4]. Erefore, for those who are engaged in remanufacturing enterprise, how to build a profitable closed-loop supply chain to effectively recycle used products should be considered. Based on the above analysis, this paper aims to study the optimal pricing of the dual-channel supply chain with the third-party product recovery and sales effort.

The third party er pr et Consumer
The whole profit of supply chain without sales effort
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