Pricing and Logistics Service Decisions in Platform-Led Electronic Closed-Loop Supply Chain with Remanufacturing

Liu, Kai; Li, Chunfa; Gu, Runde

doi:10.3390/su132011357

Cited by 4 publications

(4 citation statements)

References 38 publications

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“…Liu et al discussed the recycling channel structure selection problem of the e-commerce CLSC. The difference from this study is that they discussed three different recycling models, but did not consider different sales models [ 35 ].…”

Section: Literature Reviewmentioning

confidence: 99%

Remanufacturing and channel strategies in e-commerce closed-loop supply chain

Shi,

Ma,

Yang

2024

PLoS ONE

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This paper studies the recycling and remanufacturing mode and sales channel issues in the closed-loop supply chain. Specifically, this study establishes an e-commerce closed-loop supply chain consisting of a manufacturer and an e-commerce platform, and divides the recycling model into recycling by the manufacturer or recycling by the platform. Considering two common sales models in e-commerce platforms: the resale model and agency model, combined with the recycling model, four different research scenarios are formed. We use backward induction to solve the Stackelberg game problem and explore the remanufacturing and channel strategies of the manufacturer and the e-commerce platform. The research results show that for the manufacturer, under the same recycling model, when consumers’ preference for remanufactured products and the sensitivity of recycling volume to recycling prices are low, he will prefer the resale model. Under the same sales model, the manufacturer always prefers the recycling model in which he is responsible for recycling. However, the choice of platform is contrary to that of the manufacturer. In the resale model, both the manufacturer and the platform will choose to recycle by themselves, which cannot achieve a win-win situation. Under the agency model, when consumers’ preference for remanufactured products is high and the sensitivity coefficient of recycling volume to recycling price is low, supply chain members can achieve a win-win situation, and the scope of the win-win situation decreases as the unit production cost of new products increases. In addition, rising consumer preference for remanufactured products will lead to lower consumer surplus.

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Section: Literature Reviewmentioning

confidence: 99%

Remanufacturing and channel strategies in e-commerce closed-loop supply chain

Shi,

Ma,

Yang

2024

PLoS ONE

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“…The logistics service plays an essential role in the improvement of the recycling rate in the CLSC [7][8][9][10][11][12][13]. Logistics providers can enhance the convenience of consumers in returning used products by elevating the service quality of reverse logistics (i.e., doorto-door collection service and the simplification of the recycling process), which is the key to improving the recycling rate.…”

Section: Introductionmentioning

confidence: 99%

The Optimal Combination between Recycling Channel and Logistics Service Outsourcing in a Closed-Loop Supply Chain Considering Consumers’ Environmental Awareness

2022

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In the closed-loop supply chain, many suppliers opt for self-recycling or entrust retailers to recycle. Under both recycling channels, the member responsible for recycling can undertake or outsource logistics services. This paper investigates how consumers’ environmental awareness and recycling cost-saving affect the optimal combination of recycling channel and logistics-service strategy. To this end, we mathematically formulate the supplier-led Stackelberg game theoretical-framework, and apply the Karush–Kuhn–Tucker conditions for constrained optimization. We examine the optimal combination under the impact of consumers’ environmental awareness and recycling cost-saving on profits, environmental impact and social welfare, using numerical analysis. Results demonstrate that as consumers’ environmental awareness and recycling cost-saving remain at a higher level, the supplier and retailer will both achieve maximum profits when the supplier entrusts the retailer to recycle and the retailer undertakes the logistics services. Meanwhile, the third party will choose to be entrusted with services by the supplier, rather than the retailer. To improve supply-chain performance, the retailer should assume social responsibility to recycle and build the logistics-service system.

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“…Lululemon, a famous Yoga sportswear retailer in Canada, announced that it would pilot the "trade-in program" in California and Texas starting from May 2021 (https://baijiahao.baidu.com/s?id=1698078151935716584&wfr=spider&for=pc, accessed on 26 April 2021). In the whole year of 2020, Suning Tesco collected 3.15 million home appliance recycling orders and 2.34 million replacement appliances, with a total conversion amount of nearly 7 billion [17].…”

Section: Introductionmentioning

confidence: 99%

“…From the above propositions, the demand of the total products in model NR is the highest, so the consumer surplus in model NR is the highest. From the perspective of consumers, the new and remanufactured products with this service strategy is better.Following Zhang et al[11], Ding et al[75], Liu et al[17] and Yenipazarli et al[77], the environmental impact of new and remanufactured products can be calculated as E = e n × D n + e r × D r . Since e n > 0 and e r > 0, we set e n = 0.3 and e r = 0.1 in this section.…”

mentioning

confidence: 99%

Extended Warranty Strategy and Its Environment Impact of Remanufactured Supply Chain

Zhang

Sun

et al. 2022

IJERPH

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To reduce environmental pollution, the government has issued relevant laws and regulations, and more and more enterprises engage in remanufacturing and recycling used products. Trade old for new and trade old for remanufactured have become marketing means to promote product recycling. The extended warranty service is used to promote the recycling of waste products. To design an optimal extended warranty service strategy and analyze its environment impact in a remanufactured supply chain, game theory is used to model the competitive relationship between a manufacturer and an E-commerce platform. Considering whether the E-commerce platform provides extended warranty service, four models are constructed, and the extended warranty service strategy and its environment impact can be analyzed. The results show that, when the level of substitutability between remanufactured and new products meets a certain rage, new or remanufactured products with extended warranty service strategy can increase the demand for new or remanufactured products, respectively. In the four models, the changing trends of manufacturer’s profit, E-commerce platform’s profit and supply chain’s profit, consumer surplus, environmental impact and social welfare are the same, but only the thresholds are different. From the perspectives of supply chain member, supply chain system, consumer, environment and society, the new and remanufactured products with extended warranty service strategy is the best choice.

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Pricing and Logistics Service Decisions in Platform-Led Electronic Closed-Loop Supply Chain with Remanufacturing

Cited by 4 publications

References 38 publications

Remanufacturing and channel strategies in e-commerce closed-loop supply chain

Remanufacturing and channel strategies in e-commerce closed-loop supply chain

The Optimal Combination between Recycling Channel and Logistics Service Outsourcing in a Closed-Loop Supply Chain Considering Consumers’ Environmental Awareness

Extended Warranty Strategy and Its Environment Impact of Remanufactured Supply Chain

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