Strategic introduction of an online recycling channel in the reverse supply chain with a random demand

Li, Chunfa; Feng, Lipan; Luo, Suyuan

doi:10.1016/j.jclepro.2019.117683

Cited by 62 publications

(33 citation statements)

References 56 publications

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“…Although the WEEE online recycling has become popular in recent years, the academic research on it is still at the initial stage [24][25][26][27]. In summary, the key issue of our paper (the resale channel selection of the WEEE online recycler) has not been thoroughly explored in the extant recycling channel selection, remanufacturing operation, and selling channel strategy literature.…”

Section: Literature Reviewmentioning

confidence: 98%

“…For the WEEE online recycler, a large r c will increase its recycling cost and reduce the sales a r q or retailing price a o p , leading to the decline of the online recycler's profit. Compared with traditional recycling, the WEEE online recycler's cost advantage has contribution to increase the recycling quantity and promote the sustainable development of the environment [22][23][24]. As a result, maintaining the recycling cost at a lower level is conducive to expanding the remanufactured market and improving the WEEE online recycler's profit, but hurts the profits of the manufacturer and the e-retailer.…”

Section: The Agency Modelmentioning

confidence: 99%

“…As a new industry, online recycling for WEEE has so far received very little attention in the literation. Scholars have made some preliminary studies on whether the recyclable dealer should open an online recycling channel [24][25][26][27]. However, how the WEEE online recycler operates its reselling business has been ignored by scholars.…”

Section: Introductionmentioning

confidence: 99%

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Strategic Analysis of the Online Recycler’s Reselling Channel Selection: Agency or Self-Run

Guo

Nie

2019

Sustainability

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With the rapid development of the internet, many WEEE (Waste Electrical and Electronic Equipment) online recyclers have emerged and developed. They improve recycling efficiency significantly and bring hope for sustainable development. Unfortunately, few works in the literature are concerned about it, with many questions still unanswered. The WEEE online recyclers always face a challenge with regard to how to strategically design their reselling channel structure in fact. In this paper, we examined this challenge by two decision models: agency and self-run. We derived the performance of the self-run model and agency model by backward induction and then examined the desirability from different stakeholders' perspective. The results suggested that WEEE online recyclers prefer the self-run model to the agency model when the unit recycling cost is low and a conflict exists between the WEEE online recycler and e-retailer for the resale channel preference. Interestingly, the manufacturer shows consistent resale channel preference with the WEEE online recycler when the unit recycling cost is low. Our further analysis revealed that all players can agree on the agency model in a certain case. In addition, we found that the consumer surplus and the recovery ratio in the self-run model are always better than that in the agency model. Our work provides insight into the promotion of the WEEE online recycling industry and into the resale channel selection for online recyclers. The study also generates managerial insights for environmental sustainability.

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Section: Literature Reviewmentioning

confidence: 98%

Section: The Agency Modelmentioning

confidence: 99%

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Strategic Analysis of the Online Recycler’s Reselling Channel Selection: Agency or Self-Run

Guo

Nie

2019

Sustainability

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“…The study found that the decision-making sequence has an influence on the profits for a manufacturer employing multichannel sales strategies. A similar study conducted by Li et al [33], the strategy of introducing an online recycling channel in a reverse supply chain with a random demand is investigated. It found that introducing the online recycling channel can always benefit the remanufacturer but hurt the offline recycler.…”

Section: B Research On Decisions Of Online Shopping Service Supply Cmentioning

confidence: 99%

Interactive Decisions Analysis in an Online Shopping Service Supply Chain Considering Reciprocal Altruism

et al. 2020

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Cooperative relationships and interactive decision behaviors between online stores and thirdparty logistics (TPL) have attracted increasing attention from academics as well as practitioners with the development of the online retailing industry. However, the decisions and performance of each member in a decentralized supply chain are not in line with the actual performance and decision behaviors of them, especially when taking individual altruism preference into account. Hence, without considering the truism of channel members will lead to unrealistic decisions and obtain anamorphic performance of firms and the entire system based on conventional self-interested models. This paper develops an evolutionary bilateral decision-making model to characterize the effects of all members' altruism in an online shopping service supply chain (OSSSC). The model considers different altruism of each member in the supply chain and their changes at various intervals. The decision equilibrium and interactive rules of all members are deeply analyzed based on the evolutionary bilateral decision-model as the change of altruism of each party. Our results identify that: altruism preference impacts the decisions of all participants in the OSSSC system. When the TPL and the online store have high altruism and low altruism, respectively, both retail price and logistics service price tend toward low levels and all participants have high utilities. However, this situation is more favorable for the online store. In this case, changes in the altruism level of either party will adversely impact the utilities of all parties and the performance of the whole system; specially, when the online stores are self-interested while the TPL has altruism that fluctuates within a specific range, improving logistics service level will help to lower the retail price and increase market shares. Numerical experiments are conducted to examine and verify the results and some optimal managerial insights for online retailers and TPLs are provided. INDEX TERMS Altruism, online store, third-party logistics (TPL), online shopping supply service chain, interactive decision.

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“…Therefore, scholars have found that when the factors affecting the pricing decision change in a certain region, in order to maximize their own profits, recycling enterprises not only need to adjust the pricing decision in this region according to the change, but also need to adjust the pricing decision in another region at the same time. Among them, the influence of consumer preference change [10][11][12] for different channels, especially the influence of consumers' environmental awareness on enterprise decision has been widely studied by scholars [13,14].…”

Section: Introductionmentioning

confidence: 99%

Research on Pricing and Service Level Strategies of Dual Channel Reverse Supply Chain Considering Consumer Preference in Multi-Regional Situations

Kang

Chen

2020

IJERPH

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Facing the increasingly serious waste electrical and electronic equipment (WEEE) recycling problem, recycling enterprises actively introduce online recycling channels, build dual channel reverse supply chains (DRSC), and use high-level recycling price and service levels to enhance consumers’ recycling enthusiasm and recycling amount. Nevertheless, in China, where the imbalance of regional development is widespread, the recycling center, third-party recycler (TPR), and third-party platform (TPP) are faced with the choices of pricing and service level when facing multi-regional consumers. This paper mainly answers the following questions: (1) When the recycling center and TPP introduce online recycling channels in multi-regional situations, how should they set online recycling price, transfer price, and service level? (2) When consumer preference for online channels changes in a certain region, how should recycling enterprises adjust their optimal pricing and service level decisions for different regions to maximize their own profits? How do the profits of recycling enterprises change? In order to solve the above problems, in this paper, we propose three pricing and service level decision models for the recycling center with online channels, namely, keeping prices unchanged, unifying all prices, and maximizing its own profits. By using the Stackelberg game to solve the model, we get the optimal pricing, service level decisions, as well as the maximum profits of the recycling center, TPP, and TPR when consumer preference changes. By analyzing the results of the model, we find that the change of consumer preference for online channels in a certain region will affect the decision and profits of multi-regional recycling enterprises. Specifically, consumer preference for online channels in a certain region will not only lead to an increase in the profits of the recycling center and TPP and a decrease in the profit of local TPRs, but also an increase in the profit of TPRs in other regions. In addition, at the beginning of introducing online channels, the recycling center can adopt two strategies to avoid conflicts among channels: keeping offline transfer prices unchanged and unifying all transfer prices, but the former promotes its economic profits more significantly.

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Strategic introduction of an online recycling channel in the reverse supply chain with a random demand

Cited by 62 publications

References 56 publications

Strategic Analysis of the Online Recycler’s Reselling Channel Selection: Agency or Self-Run

Strategic Analysis of the Online Recycler’s Reselling Channel Selection: Agency or Self-Run

Interactive Decisions Analysis in an Online Shopping Service Supply Chain Considering Reciprocal Altruism

Research on Pricing and Service Level Strategies of Dual Channel Reverse Supply Chain Considering Consumer Preference in Multi-Regional Situations

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