Dual Recycling Channel Strategy of Closed-loop Supply Chain based on Stackelberg Theory

DOI

10.2991/meic-14.2014.130How to use a DOI?

Keywords

Dual Recycling Channel; Strategy; Closed-loop Supply Chain; Stackelberg Theory;

Abstract

Under the background of promoting recycling economy, the economic and environmental benefits of remanufacturing used products have become heat topic. In this paper, Stackelberg game theory is used to study the closed-loop supply chain models under Dual Channel Recovery concerning manufacturer and retailers. Based on the game theory, we characterize the supply chain performance in terms of recycling strategies for both the decentralized and centralized channel scenarios in which contains a consumer, a retailer, a manufacturer. In the decentralized model, manufacturer and retailer are the independent decision makers who aim to maximize its own profit.; while in the centralized model, manufacturer cooperates with retailer as a whole to recycle the product. Then Hessian matrix is used to find optimal result. By comparing the optimal result in two models, the study found that the total supply chain profits in centralized channel scenario are greater than that in decentralized one under the same condition.

Copyright

© 2014, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Weimin Ma
AU  - Ai Zheng
PY  - 2014/11
DA  - 2014/11
TI  - Dual Recycling Channel Strategy of Closed-loop Supply Chain based on Stackelberg Theory
BT  - Proceedings of the 2014 International Conference on Mechatronics, Electronic, Industrial and Control Engineering
PB  - Atlantis Press
SP  - 579
EP  - 583
SN  - 2352-5401
UR  - https://doi.org/10.2991/meic-14.2014.130
DO  - 10.2991/meic-14.2014.130
ID  - Ma2014/11
ER  -