Coordinating a closed-loop green supply chain for remanufactured product under competition

Document Type : Article


Department of Mathematics, Jadavpur University, Kolkata - 700 032, India


The success of any remanufacturing system depends on proper supply of used product. In the real-world, many remanufacturers are unable to collect it directly from customers. This article considers a closed-loop green supply chain consisting of a single remanufacturer, two competing retailers and collectors for dealing with used and remanufactured products. Considering the effect of acquisition price and greening level on collection quantity of used product, and the effect of selling price and greening level on the demand, closed-form solutions are derived for a centralized model and two decentralized models depending on collectors' cooperation and competition. Optimal results of the decentralized models are compared to find the best decentralized policy. Moreover, a novel multi-link two-part tariff contract among the channel members is proposed to resolve the channel coordination issue. The numerical analysis indicates that (i) cooperation between the collectors is only beneficial for themselves while competition between them is favorable from the viewpoint of the whole supply chain; (ii) utilization ratio has a noteworthy effect on the performance of the supply chain; (iii) the proposed contract assists the collectors with getting more than double transfer price and the remanufacturer to improve its profit over 21\% compared to the decentralized setting.


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