Analyzing a closed-loop sustainable supply chain with duopolistic retailers under different game structures

This article investigates a closed-loop supply chain consisting of a manufacturer, two suppliers and two competitive retailers. One retailer sells manufactured products whereas the other retailer sells remanufactured products and takes up corporate social responsibility (CSR). One supplier supplies...

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Bibliographic Details
Published in:CIRP journal of manufacturing science and technology 2021-05, Vol.33, p.222-233
Main Authors: Dey, Sushil Kumar, Giri, Bibhas C.
Format: Article
Language:English
Subjects:
Closed-loop supply chain
Corporate social responsibility
Pricing
Remanufacturing
Stackelberg game
Sustainability
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Summary:This article investigates a closed-loop supply chain consisting of a manufacturer, two suppliers and two competitive retailers. One retailer sells manufactured products whereas the other retailer sells remanufactured products and takes up corporate social responsibility (CSR). One supplier supplies used products or cores for remanufacturing while the other supplier supplies fresh raw materials for manufacturing new product. The manufacturer sells both new and remanufactured products with different wholesale prices. The paper analyzes the two competitive retailer's different game strategies when the manufacturer acts as the Stackelberg leader. It is shown that remanufacturing is a good policy to adopt for the whole supply chain, not only for economical benefits but also for environmental sustainability. Optimal decisions of the proposed closed-loop supply chain and its members are also supported by a numerical example. Finally, sensitivity analysis is carried out with respect to key model-parameters.
ISSN:1755-5817
1878-0016
DOI:10.1016/j.cirpj.2021.03.003