Journal
RAIRO-OPERATIONS RESEARCH
Volume 56, Issue 3, Pages 1149-1166Publisher
EDP SCIENCES S A
DOI: 10.1051/ro/2022046
Keywords
Remanufacturing closed-loop supply chain; extended warranty service; power structure; dual price sensitivity; coordination contract
Categories
Funding
- major Project of Philosophy and Social Science Research in Colleges and Universities in Jiangsu Province [2021SJZDA131]
- Postgraduate Research & Practice Innovation Program of Jiangsu Province [KYCX21 1039]
- Ministry in China of Education of Humanities and Social Science Project [19YJC630240]
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This paper studies the impact of dual price sensitivity on the decision-making of the closed-loop supply chain. It uses a dynamic game model and mathematical optimization to derive supply chain decision-making and performance levels, and proposes a contract to coordinate the supply chain. The research shows that channel power structures, remanufacturing cost savings, and dual price sensitivity all have important impacts on the supply chain and corporate profits.
This paper studies the impact of dual price sensitivity (product price sensitivity and extended warranty service price sensitivity) on the decision of the closed-loop supply chain (CLSC) where manufacturers are responsible for recycling and providing extended warranty service under different channel power structures. First, the dynamic game model is used to describe the three channel power structure models of centralized (C), Manufacturer-led Stackelberg (MS), and Retailer-led Stackelberg (RS). Then, mathematical optimization and reverse induction are used to derive supply chain decision-making and performance levels. On this basis, we further designed a contract to coordinate the supply chain, and use numerical examples to analyze and verify the impact of remanufacturing cost savings and dual price sensitivity on the supply chain system. Research shows that channel power structures, remanufacturing cost savings and dual price sensitivity all have an important impact on the supply chain and corporate profits.
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