Dual-channel Closed-loop Supply Chain Research Articles

Pricing strategy with quality improvement in a dual collection channel closed-loop supply chain under return uncertainty

Pricing strategy with quality improvement in a dual collection channel closed-loop supply chain under return uncertainty

Recycling, pricing decisions, and coordination in the dual-channel closed-loop supply chain: A dynamic perspective

As the “Internet+” mode promotes transforming and upgrading the traditional recycling industry, dual-channel recycling has become the focus of commercial activities. Based on such background, this paper constructs the differential game models of the dual-channel closed-loop supply chain (DCCLSC) system in the complete non-cooperation (DN), incomplete cooperation (D), and complete cooperation (C) scenarios by applying game theory. The novelty is that recycling and pricing decision problems are investigated for the DCCLSC system from a dynamic perspective. A cost sharing-transfer payment contract is designed to realize the perfect coordination of the DCCLSC system. Moreover, the extended models with government intervention and inventory management are proposed. Finally, the numerical examples are used to verify the feasibility and validity of the addressed results. The results show that 1) online retail price is higher than offline retail price when μ>μN; 2) The retail price in the DN model is always lower than the D model, and their comparative relationship with the C model is closely related to the ratio of recoverability rate; 3) The recoverability rate and the profit of DCCLSC system are highest in the C model; 4) Competition and government intervention can create a win-win situation with improving environmental and economic benefits.

Pricing decisions of online and offline dual-channel supply chains considering data resource mining

Data resources, a fundamental component in the digital economy, play a vital role for businesses aiming to establish a lasting competitive edge. A company's data resources can uniquely influence the decisions surrounding products and services within the supply chain. The integrated dual-channel supply chain (DCSC) involves direct online channels utilized by manufacturing service providers alongside offline channels, such as physical retail stores, managed by sales service integrators. The DCSC is capable of performing second-stage data mining services in accordance with the sold products and customer services after the product sales are completed. Subsequently, data resource mining can be achieved through a cross-channel approach. As such, considering the exploration of cross-channel data resources, this study strives to formulate a structure for a dual-channel closed-loop supply chain. Furthermore, utilizing concepts from the Stackelberg and Nash equilibrium game theories, it delves into the analysis of pricing decisions and profit allocation. This examination encompasses distinct closed-loop supply chain configurations, viewed through the lenses of both centralized and decentralized decision-making approaches. In addition, the effects of cross-channel data mining and channel consumption preferences on supply chain decisions are analyzed, and the analysis is conducted in combination with numerical examples. As evidenced by the findings in this investigation, cross-channel data resource mining, consumer channel preference, and the data mining value conversion rate can prominently affect the formulation of pricing strategies and the distribution of profits in closed-loop supply chains. The potential value of data resources can lead to the generation of “external incentives” following the strategy of data resource mining. Furthermore, the data resource mining strategy is promising in stimulating the growth of the product and service markets. Finally, the overall profit of the supply chain is increased with the increase in the efficiency of data resource conversion. Enhancements in the efficacy of data resource conversion correspondingly lead to heightened overall profits within the supply chain.

Effects of Online Consumer Reviews on a Dual-Channel Closed-Loop Supply Chain With Trade-In

To study the effects of online consumer reviews (OCRs) on a dual-channel closed-loop supply chain and the manufacturer's trade-in authorization strategy, we construct four Stackelberg game models with or without OCRs under two scenarios, i.e., whether the retailer is authorized to determine the retail channels trade-in rebate or not. Results show that under both scenarios, incorporating OCRs will increase the overall prices as well as the profits of the manufacturer and the total supply chain only when the OCRs are sufficiently positive, which is always harmful to the retailer. Authorization of the retailer to trade-in will increase the retailer's profit. When the quality belief reflected by OCRs is increasing, it becomes more harmful for the manufacturer to authorize the retailer to trade-in: when OCRs are not available, the manufacturer can benefit from authorizing the retailer to trade-in; when OCRs are available and lower than certain thresholds, authorization of the retailer to trade-in can benefit the manufacturer; and when OCRs are sufficiently positive, it is more profitable for the manufacturer not to authorize the retailer to trade-in. Furthermore, two extended models considering channel-heterogeneous and consumer-heterogeneous OCRs are investigated, and it is found that the main conclusions still hold. These research findings could facilitate managers' decisions on hosting a consumer review system and authorizing the retailer to trade-in.

Pricing and Financing Strategies of Dual Channel Closed-loop Supply Chain Considering Capital-constrained Manufacturer

Pricing and Financing Strategies of Dual Channel Closed-loop Supply Chain Considering Capital-constrained Manufacturer

Pricing and financing strategies of dual channel closed-loop supply chain considering capital-constrained manufacturer

Pricing and financing strategies of dual channel closed-loop supply chain considering capital-constrained manufacturer

Dynamic Analysis of a Dual-Channel Closed-Loop Supply Chain with Heterogeneous Players and a Delay Decision

This paper considers a dual-channel closed-loop supply chain (CLSC) consisting of a manufacturer who wholesales new products through the traditional retail channel and distributes remanufactured products via a direct (online) channel established by himself. Two dynamical Stackelberg game models are developed based on the assumption that the retailer is an adaptive player, and the manufacturer is a bounded rational player who may adopt a delay decision. The existence and locally asymptotic stability of the Nash equilibrium are examined. Moreover, the impacts of key parameters on the complexity characteristics of the models and the performance of chain members are studied by numerical simulation. The results reveal that the excessively fast price adjustment speeds of the manufacturer, the larger consumers’ discount perception for the remanufactured products, and the consumers’ preference for the direct channel have a strong destabilizing effect on the Nash equilibrium’s stability. Furthermore, the delay decision implemented by the manufacturer could be a stabilizing or destabilizing factor for the system. The manufacturer will tolerate a considerable profit reduction while the retailer gains more profits when the dual-channel CLSC system enters periodic cycles and chaotic motions.

Data-driven robust optimization of dual-channel closed-loop supply chain network design considering uncertain demand and carbon cap-and-trade policy

With the popularization of Internet applications and the development of e-commerce, the number of online consumers is constantly increasing. This study aims to provide a framework for a sustainable and environmentally friendly closed-loop supply chain network with dual-channel (online channel and offline channel). The goal is to assist managers in making economically and environmentally sustainable decisions. Accordingly, a multi-period mathematical model is designed to address the challenges of the appliance industry, which faces uncertain demand. The model considers the carbon cap-and-trade policy, the regional protection policy of the retailer, and multiple transport modes in the design of the supply chain network. To handle demand uncertainty, we propose a robust model that utilizes a data-driven polyhedral uncertainty set based on principal component analysis and kernel smoothing methods and transforms the robust model into a mixed-integer linear programming problem. Additionally, we present a two-stage adaptive genetic algorithm to effectively tackle the large-scale and complex nature of the supply chain network. Extensive computations are performed to verify the algorithm's effectiveness. Finally, sensitivity analysis is conducted on key parameters to gain valuable insights. The results demonstrate that an increase in online consumers can significantly reduce stockouts, while an increase in uncertain demand leads to a substantial increase in the total cost.

What is the role of product services in the dual-channel closed-loop supply chain?

With the continuous development of Internet technology and the increasing awareness of environmental protection among consumers, the dual-channel closed-loop supply chain management combining online direct sales channel and retail channel has received more and more attention, however, the existing research has neglected the service research of the dual-channel closed-loop supply chain, so this paper focuses on the service strategy in the dual-channel closed-loop supply chain. In this paper, we propose three service strategy models for dual-channel closed-loop supply chains, including when there is no service provision, after-sales service and recycling service provided by retailers and after-sales service provided by manufacturers and recycling service provided by retailers, compare and analyze the optimal decisions of supply chain members under the three service strategy models, discuss the role of service generated in dual-channel closed-loop supply chains, and propose a service cost-sharing strategy to achieve a Pareto improvement in the effectiveness of a dual-channel closed-loop supply chain. The study finds that service plays a positive role in the dual-channel closed-loop supply chain; the model of manufacturer providing after-sales service and retailer providing recycling service is the best service strategy choice in terms of economic and social benefits; the service cooperation mechanism of service cost sharing can achieve Pareto improvement of the supply chain within a reasonable range.

Strategic information sharing in the dual-channel closed loop supply chain with nonlinear production cost

This paper explores the strategy of information sharing within a closed loop supply chain comprising three echelons and dual channels. By considering the supplier’s collecting activities and the two formats of nonlinear production costs (i.e., production diseconomy and production economy) faced by the manufacturer, we construct and utilize game-theoretic models to determine the optimal strategy (i.e., no sharing, sharing information solely with the manufacturer, sharing with the supplier, and sharing with both the manufacturer and supplier) for information sharing by the retailer. The findings indicate that the retailer's inclination to voluntarily share information and the most effective approach are significantly influenced by the interplay between the supplier's recycling efficiency and the manufacturer's nonlinear production cost. Specifically, in the context of production diseconomy, it is commonly observed that the retailer can derive advantages by engaging in information sharing with a supplier who possesses a high recycling efficiency. In contract, the retailer would share the information when the recycling efficiency is high or the production economy coefficient is large. Otherwise, no sharing strategy can be considered as the optimal choice. Ultimately, the study aims to assess the effects of various approaches to sharing information on the remaining participants within the supply chain.

Investigating a closed-loop dual-channel green supply chain with stochastic demand rate and collection ratio using the distribution-free approach

This paper investigates a dual-channel closed-loop supply chain in an uncertain market environment consisting of a manufacturer, a retailer, and a collector, where the manufacturer can produce green products by utilizing recycling components from the collector and raw materials from an outside source. According to our analysis, market demand is stochastic and strongly influenced by channels’ selling prices, the level of green innovation, and retail service. Additionally, the collection rate of used-obsolete products is also random and affected by green innovation levels and refund prices. We analyze the model by dividing it into three scenarios based on players’ collaborative and non-collaborative behavior and then solve the problem in centralized and decentralized cases through a distribution-free approach. Using vertical Nash and Stackelberg game approaches, the interaction between players is modeled in the decentralized scenario. The model’s findings are illustrated with a numerical example, and a sensitivity analysis is also performed to provide insights into management by determining how different parameters will impact profits. Results suggest that the higher expected value of demand randomness is linked to increased market scale but that random variables with higher variance levels are more uncertain, leading to lower channel profitability. Moreover, a collaborative effort between manufacturer and collector could improve both prices and greenness, ultimately boosting the fraction collected. In addition, results reveal that the retailer Stackelberg frameworks will most adversely affect players, whereas the manufacturer Stackelberg frameworks will generate profits almost every time.

Designing a dual-channel closed loop supply chain network using advertising rate and price-dependent demand: Case study in tea industry

Today, with the development of the Internet, e-commerce, and digital advertising, along with traditional advertising, have attracted the attention of many sectors and businesses, including the agricultural industry. One of the most consumed agricultural products is tea, which advertising plays a significant role in attracting more customers and improving the efficiency of its supply chain. Therefore, managing the supply chain of such product should be monitored and configured effectively considering sustainability aspects. The aim of this study is to design a dual-channel Sustainable Closed-Loop Supply Chain (SCLSC) network for tea industry for the first time. Then, a Mixed Integer Linear Programming (MILP) model is proposed for optimizing the total costs, the number of emissions and the number of created job vacancies. In addition, customer demand is dependent on traditional and digital advertising rates and product prices. For solving this model in small dimensions, LP-metric method and in high dimensions, four meta-heuristic multi-objective algorithms including Simulated Annealing Algorithm (MOSA), Particle Swarm Optimization (MOPSO), Gray Wolf Optimizer (MOGWO) and Whale Optimization Algorithm (MOWOA) were used and their results and performance were compared. Furthermore, sensitivity analysis was performed to further evaluate some parameters such as demand. The obtained results confirmed the validity of the planned model and the correctness of its solution method. Finally, practical insights are provided for the related managers and tea producer countries.

Discounting strategies' effects on a closed-loop dual-channel environmentally friendly supply chain of complementary products under sales effort

ABSTRACT The relevance and impact of the internet are growing in every aspect of daily life, particularly in business which has the potential to address a lot of issues and transform many conventional techniques and procedures, including distribution. Many manufacturers have expanded their traditional retail channels to include a channel to trade the products to consumers exclusively. This paper investigates the pricing decision and the effect of discounting in a dual-channel closed-loop supply chain with two green complementary products by exploring the market demand is linearly correlated with the product selling prices, sales effort level and green innovation level. Here, four different models are analysed analytically under a game-theoretic methodology and then validated the findings using a numerical example. Additionally, the sensitivity analysis is performed to investigate the impacts of a few significant critical parameters on the supply chain participants. The findings of the article demonstrate how environmentally and economically advantageous green innovation can raise profits throughout the supply chain. Also, it is worth noting that sales efforts contribute to an increase in supply chain profit. Moreover, the discounts policy proves to be more profitable when the discount rate surpasses a specific threshold.

Impacts of sales mode and recycling mode on a closed-loop supply chain

This paper forms a closed-loop supply chain (CLSC) consisting of a manufacturer and a retailer, within which the retail channel or dual-channel sales mode is chosen for selling products while the manufacturer, retailer or hybrid recycling mode is chosen for collecting used products. Based on different sales modes and recycling modes, six-game theory models are formulated to derive the optimal pricing and recycling rate decisions. Through the model comparisons and the numerical analysis, we investigate the strategies for choosing the optimal sales mode and the optimal recycling mode. We find that the customers, the environment and the manufacturer always prefer the dual-channel sales mode. However, the retailer prefers the dual-channel (retail channel) sales mode when the discount coefficient of demand is relatively low (high). Moreover, the customers, the environment and the manufacturer prefer the hybrid (retailer) recycling mode when the competing intensity of recycling is relatively low (high). However, the retailer prefers the hybrid (retailer) recycling mode in the retail channel CLSC while preferring the hybrid (manufacturer) recycling mode in the dual-channel CLSC when the competing intensity of recycling is relatively low (high).

Pricing and greening decisions of a government-subsidised dual-channel closed-loop green supply chain model with price-dependent collection rate

ABSTRACT Online shopping has become increasingly popular among customers due to the availability and easy accessibility of electronic devices. Hence, a manufacturer would like to open an online platform with his traditional retail channel. Government subsidies are endogenised in a research joint venture based on recent observations. Here, government subsidies are assumed to increase the production of eco-friendly products to be much more environmental friendly. The retailer and third-party collector collect used products from the customer and return them to the manufacturer for recycling. Demand rates are modelled as linear functions of selling prices and the level of green innovation. The collection rates are considered linear functions of collecting fees and the level of green innovation. The study investigates three decentralised models under three scenarios and the centralised model. A sensitivity analysis is composed to study the effects of the essential parameters. Critical managerial insights have been provided, which is beneficial for the supply chain members. If the cost co-efficient of green innovation can be reduced, then the optimal level of green innovation and the members' profits increase. Again the governmental subsidy is directly proportional to the level of green innovation and the manufacturer's profit.

A scenario-based sustainable dual-channel closed-loop supply chain design with pickup and delivery considering social conditions in a natural disaster under uncertainty: a real-life case study.

In the context of the COVID-19 pandemic, utilizing the potential of online markets to sell products has become increasingly important for creating competitive advantages and ensuring the growth and survival of businesses. The pandemic has disrupted traditional business practices, and with social distancing measures in place, consumers have turned to online channels to meet their needs. As a result, businesses that have adapted quickly to online markets have been able to maintain their customer base and revenue streams. Thus, considering the potential of online markets is of utmost importance in the current pandemic situation. In this regard, the present research aims to provide a practical framework for creating a green and sustainable closed-loop supply chain network (SCLSCN), including the integration of online markets, to assist managers in making decisions that support economic, environmental, and social goals. Accordingly, a multi-objective mixed integer linear programming (MOMILP) optimization model was designed under uncertain demand and disruption caused by natural disasters in Iran's home appliance industry. The study also considered changes in the capacities of online and marketplace sales channels, revealing a significant reduction in costs at each stage. The results show that the increase in demand has a direct impact on the production level, warehousing, and transportation costs, leading to social impacts on the model. However, the current system cannot handle an increase in demand of more than 20%, requiring managers to make decisions to increase production capacity or build new factories. Thus, the study highlights the importance of considering online markets as a means to adapt to disruptions caused by the pandemic and maintain a competitive edge.

Impacts of sales mode and recycling mode on a closed-loop supply chain

Statement of Removal Due to a technical issue, this article incorrectly published in the International Journal of Systems Science instead of the International Journal of Systems Science: Operations & Logistics. Therefore, this article has been removed from International Journal of Systems Science and republished in the International Journal of Systems Science:Operations & Logistics. The article is now available in the link: https://doi.org/10.1080/23302674.2023.2221076 Article title: Impacts of sales mode and recycling mode on a closed-loop supply chain Authors: N.Wan Journal: International Journal of Systems Science Version of Record Published Online: 06 April 2023 DOI: http://doi.org/10.1080/00207721.2023.2197434

Screening third-party collectors’ double asymmetric information in a dual-channel closed-loop supply chain

We investigate the third-party collector’s private information in a dual-channel closed-loop supply chain (DCLSC). The manufacturer sells her products through both an e-channel and retail channel and delegates the collection of waste electrical and electronic equipment (WEEE) to a third-party collector. The collector in a DCLSC has two types of private information: i.e., his collection effort level and collection ability. We develop principal-agent models to help the manufacturer design an information screening contract to obtain the collector’s asymmetric information. The results show that (i) an information screening contract can effectively prevent low ability collectors from misrepresenting their private information; (ii) although the increased awareness of environmental protection of consumers improves the manufacturer’s expected profit, it does not affect the retailer’s expected profit and the collector’s expected utility; (iii) the manufacturer’s expected profit enhances with the number of high ability collectors, whereas the expected utility of the high ability collector declines; (iv) the e-channel could not increase the total expected profit of the manufacturer and the retailer, but the channel transfers a part of the retailer’s expected profit to the manufacturer.

Coordination strategies of dual channel closed-loop supply chain considering demand disruptions

Coordination strategies of dual channel closed-loop supply chain considering demand disruptions

Coordination Strategies of Dual Channel Closed-loop Supply Chain Considering Demand Disruptions

Coordination Strategies of Dual Channel Closed-loop Supply Chain Considering Demand Disruptions