A closed-loop supply chain with trade-in strategy under retail competition
type: Item
instance of: scholarly article
title: A closed-loop supply chain with trade-in strategy under retail competition
zbMATH Open document ID: 1426.90046
DOI: 10.1155/2018/1510959
author: Yanting Huang
published in: Mathematical Problems in Engineering
publication date: 2019-02-08T00:00:00Z
review text: Summary: This paper investigates a closed-loop supply chain (CLSC) consisting of a manufacturer and two competing retailers who collect used products through trade-in strategy. Three remanufacturing models with trade-in strategy have been developed: (1) the manufacturer implements trade-in strategy (Model M), (2) single retailer collects used products through trade-in strategy (Model SR), and (3) two retailers undertake trade-in activities (Model TR). We analyze the impact of trade-in strategy on equilibrium decisions and chain members' profits when retailing is competitive. We show that, as for the manufacturer, he prefers the case where trade-in is implemented by himself due to the direct benefits from remanufacturing, and the case of single retailer implementing trade-in strategy is the most unfavorable for the environment. We also show that, if the net value of a used product is sufficiently large, the retailer only selling products benefits from the case of the manufacturer implementing trade-in strategy because the manufacturer can coordinate both the forward and reverse flows, and Model M dominates Model TR for the retailer who undertakes both product sales and trade-in strategy. Moreover, a larger trade-in rebate can be achieved when two retailers simultaneously conduct trade-in strategy due to the intense competition between two retailers.
Mathematics Subject Classification ID: 90B06
zbMATH DE Number: 7018492
MaRDI profile type: Publication
full work available at URL: https://doi.org/10.1155/2018/1510959
OpenAlex ID: W2784697761
cites work: OR FORUM—The Evolution of Closed-Loop Supply Chain Research
cites work: Closed-Loop Supply Chain Models with Product Remanufacturing
cites work: Reverse Channel Design: The Case of Competing Retailers
cites work: Dual-channel closed-loop supply chain with government consumption-subsidy
cites work: Remanufacturing with trade-ins under carbon regulations
cites work: The effect of implementing trade-in strategy on duopoly competition
description: scientific article; zbMATH DE number 7018492