Manufacturer’s cooperation strategies of closed-loop supply chain considering recycling advertising

Abstract

Online recycling shows great potential to significantly boost recoverable quantity and attract advertising investment. This study focuses on exploring how retail and recycling advertising affects the manufacturer’s cooperation strategy in a closed-loop supply chain (CLSC). The CLSC model consisting of a manufacturer, an online recycling platform with recycling advertising, and a retailer with retail advertising considers four cooperation strategies by a manufacturer: no cooperation, cooperation with only the retailer, cooperation with only the online recycling platform, and cooperation with the online recycling platform and the retailer. After comparing four strategies, it is found that the manufacturer collaborates with the retailer, or the online recycling platform based on retail and recycling advertising coefficients. Furthermore, cooperation between the manufacturer and the retailer increases retail advertising and sales, which incentivizes the manufacturer to collaborate with the retailer. Collaboration between the manufacturer and the online recycling platform will increase both recycling advertising and quantity, which incentivizes the manufacturer to collaborate with the online recycling platform. These results would encourage more manufacturers to improve their operational efficiency through cooperation with online recycling platforms because the online recycling platforms conveniently utilize recycling advertising to increase the quantity of used products recycled, which in turn contributes to environmental sustainability.