Comparison of Cooperation Modes in a Two-Period Closed-Loop Supply Chain System considering Green Manufacturing

Abstract

In order to improve the efficiency of collection and green manufacturing level in a closed-loop supply chain (CLSC) system, the manufacturer invests green manufacturing efforts in product design and production process and intends to cooperate with other CLSC members to achieve excellent performance. In a two-period CLSC system consisting of one manufacturer, one retailer, and one third-service provider, a game-theoretical approach is adopted to compare the optimal decisions and profits of the three green manufacturing cooperation modes, namely, the manufacturer cooperates with the retailer and third-service provider, respectively, and the noncooperation mode is a benchmark. Moreover, the impact of different cooperation modes on CLSC decision-making is analyzed as well. The results indicate that the influence of difference among cooperation modes on CLSC decision is significant, and cooperation is always better than noncooperation. From the perspective of consumers as well as recycling and profit, although the collection rate of used products is not the highest when the manufacturer cooperates with the retailer, the price of product is the lowest and the green property of product is the most obvious; thus, this is regarded as the suitable cooperation mode after a comprehensive analysis. Besides, a coordination mechanism is designed to solve the inefficiency caused by double marginalization. Finally, numerical examples are presented to intuitively observe the relationships between decisions and profits and the impact of different parameters on them in the three modes, and some management inspirations are proposed ultimately.

Analysis of Green Closed-Loop Supply Chain Efficiency under Generalized Stochastic Petri Nets

“…These studies mostly focused on coordination and decision-making for the green supply chain, and some researchers have introduced green degree into closed-loop supply chain for research. Ma [9] studied a closed-loop supply chain system comprised of one manufacturer, one retailer, and a third-party service provider, in which the manufacturer invested in green manufacturing efforts at the stages of product design and manufacturing. Zhou et al [10] discussed carbon trading, green innovation efforts, and green customers' preference for internal and permitted remanufacturing strategies by introducing green factors and discovered that when the price of carbon trading is low, enterprises will choose authorized remanufacturing strategies in order to obtain more benefits.…”

Closed-Loop Supply Chain Design with Sustainability Aspects and Network Resilience under Uncertainty: Modelling and Application

“…ey use game theory to model the problem. Game theory is also used by Ma [54] to study the effects of cooperation in the green CLSC. Sadeghi et al [55] includes location-routing decisions in their proposed MILP model for designing a CLSC.…”

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

“…Zhang and He [31] investigated the optimal policies for new and green remanufactured products with short-life-cycle under consideration of consumer behavior. Ma [32] considered a two-period green CLSC and compared various cooperation modes among manufacturer, retailer and collector for improving channel performance. Considering price, advertisement and uncertain demand, Khorshidvand et al [33] proposed a hybrid modeling approach for multi-objective optimization in a green and sustainable CLSC.…”