Production and coordination decisions in a closed-loop supply chain with remanufacturing cost disruptions when retailers compete

This paper studies the production and coordination decisions in a closed-loop supply chain (CLSC) with one manufacturer and two competing retailers when remanufacturing costs are disrupted. We find that the pricing and production quantity decisions have certain robust regions when facing disruptions...

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Bibliographic Details
Published in:Journal of intelligent manufacturing 2018-01, Vol.29 (1), p.227-235
Main Authors: Wu, Haiyan, Han, Xiaohua, Yang, Qianxia, Pu, Xujin
Format: Article
Language:English
Subjects:
Business and Management
Control
Decisions
Machines
Manufacturing
Mechatronics
Processes
Production
Remanufacturing
Robotics
Supply chains
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Summary:This paper studies the production and coordination decisions in a closed-loop supply chain (CLSC) with one manufacturer and two competing retailers when remanufacturing costs are disrupted. We find that the pricing and production quantity decisions have certain robust regions when facing disruptions; and the more intense of competition between retailers, the smaller the robustness regions. Moreover, the manufacturer would like to adjust the production decisions when facing large size of positive or negative disruptions, while the retailers only would like to adjust them when facing large size of negative disruptions. Finally, we find that the revenue-sharing contracts can effectively coordinate the CLSCs, whereas more profits are required by retailers under large positive disruptions.
ISSN:0956-5515
1572-8145
DOI:10.1007/s10845-015-1103-z