Abstract
While the previous literature overlooks value-added service in a closed-loop supply chain (CLSC), we consider new research problems with embedding value-added service into remanufacturing models. In this paper, we mainly study the role of value-added service in a CLSC and investigate how the value-added service influences profits and other decision variables. Then, we evaluate the performance of the CLSC in different service structures, where a manufacturer or a retailer provide the value-added service. Systematic comparisons and numerical studies show that the supply chain is more effective when service is provided by a manufacturer rather than by a retailer. Also, value-added service improves the whole supply chain performance and plays a regulatory role in a CLSC and influences the decisions of supply chain members. We also show that while a service cost-sharing mechanism can only optimise rather than achieve the supply chain coordination, and the degree of optimisation depends on cost-sharing percentage, the two-part tariff contract can be an effective mechanism to coordinate decentralised service scenarios by generating the same supply chain performance in a centralised service architecture model.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
