Original scientific paper

Closed-loop supply chain coordination based on recyclers' competition model

Chao He ; School of Management, China University of Mining &Technology, Xuzhou Jiangsu, CHINA
Xue-Feng Song ; School of Management, China University of Mining &Technology, Xuzhou Jiangsu, CHINA
Chun-Hua Feng ; School of Management, China University of Mining &Technology, Xuzhou Jiangsu, CHINA

Abstract

In a closed-loop supply chain led by manufacturing enterprises, there are often two or more recyclers that are very competitive among each other. The manufacturer may also provide many recycling contracts in order to identify recyclers’ private information. This paper examines a closed-loop supply chain consisting of a manufacturer at the core of the supply chain and two competing recyclers. In order to strike a balance between its own interest and overall interest manufacturer provides two different recycling contracts: price contract and quantity contract. Two
situations have been analyzed in this paper: the first in which only advantage recycler adopts quantity contract and the second in which both recyclers adopt quantity contract. A numerical simulation has been carried out according to some current data of an enterprise. In case in which the advantage recycler adopts quantity contract and the inferior recycler adopts price contract, the closed-loop supply chain has reached its equilibrium and the interests of all parties have been balanced.

Keywords

double recycling contract; closed-loop supply chain; recyclers’ competition; prices contract; quantity contract

Hrčak ID:

185746

URI

https://hrcak.srce.hr/185746

Publication date:

18.6.2014.

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