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Coordination in a closed-loop sustainable supply chain considering dual-channel and cost-sharing contract: Evidence from an emerging economy
journal contribution
posted on 2023-01-04, 11:40 authored by Hannan Amoozad Mahdiraji, Kannan Govindan, Saba Madadi, Jose Arturo Garza ReyesDue to the significant role of the reverse supply chain (RSCs) in collecting used products
and achieving a sustainable environment, both scholars and industries have paid close
attention to pricing in reverse and closed-loop supply chains (CLSCs). Moreover, with the
rapid development of the Internet and e-commerce in the latest decades, researchers have
examined the impact of constructing online return channels based on customer behavior.
In this article, a game-theoretic approach was applied to find the optimal economic and
environmentally sustainable solutions in a two-level CLSC with a dual collecting channel
including the retailer’s traditional channel and the manufacturer’s online channel. The purpose
of the current study is to optimise the selling price, acquisition prices, market
demand, channels return rate, the portion of manufacturing new products, and cost-sharing
contract (CSC) participation shares for each player. For this purpose, various policies,
such as centralised and decentralised modes, different structures such as Nash bargaining
power, manufacturer-leader Stackelberg, and retailer-leader Stackelberg have been considered.
However, the main contribution of this work compared to the existing literature is
considering two CSCs from both retailer and manufacturer points of view, with a real case
analysis from an emerging economy. In addition, a comprehensive sensitivity analysis has
been carried out to enhance the validation of the proposed model. The results indicated
that the manufacturer-leader Stackelberg strategy leads to the lowest profit for the SC in
both decentralised and cooperative policies. However, when the retailer and manufacturer
have equal decision-making power (Nash strategy) and the retailer participates in the
remanufacturing cost (i.e. cost-sharing type-2) both the economic and environmentally sustainable
goals of CLSC were met.
History
Author affiliation
School of Business, University of LeicesterVersion
- AM (Accepted Manuscript)