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Dual-channel closed-loop supply chain with government consumption-subsidy

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  • Ma, Wei-min
  • Zhao, Zhang
  • Ke, Hua

Abstract

The government has been acting as an important role in the formation and operation of closed-loop supply chain. This paper focuses on how consumption-subsidy influences dual-channel closed-loop supply chain. After introducing government consumption-subsidy program and dual-channel closed-loop supply chain, the paper analyzes the channel members’ decisions before and after the government-funded program performance, respectively. Finally, influence of consumption-subsidy has been considered from the consumers, the scale of closed-loop supply chain and the enterprises perspectives, which provides an important basis for our propositions. The key propositions of the paper are listed as follows: All the consumers that purchase the new products are beneficiaries of the government consumption-subsidy in varying degrees; the consumption-subsidy is conducive to the expansion of closed-loop supply chain; both the manufacturer and the retailer are beneficiaries of the consumption-subsidy, while the e-tailer benefits or not is uncertain.

Suggested Citation

  • Ma, Wei-min & Zhao, Zhang & Ke, Hua, 2013. "Dual-channel closed-loop supply chain with government consumption-subsidy," European Journal of Operational Research, Elsevier, vol. 226(2), pages 221-227.
    • Handle: RePEc:eee:ejores:v:226:y:2013:i:2:p:221-227
    DOI: 10.1016/j.ejor.2012.10.033
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    References listed on IDEAS

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