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Trade-in strategies in retail channel and dual-channel closed-loop supply chain with remanufacturing

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  • Xiao, Lu
  • Wang, Xian-Jia
  • Chin, Kwai-Sang

Abstract

To derive conditions for manufacturer and retailer to implement trade-in policies voluntarily and identify the optimal channel format for trade-in, we construct traditional retail channel model and dual-channel model under two scenarios: without trade-in and with trade-in. We find that the retailer would implement trade-in policy voluntarily in traditional retail channel only if old customers’ market share exceeds a certain threshold. Interestingly, the result is opposite in dual-channel case. The traditional retail channel and the dual-channel could be the optimal choice for implementing trade-in respectively, depending on different value ranges of customers’ acceptance of direct online channel.

Suggested Citation

  • Xiao, Lu & Wang, Xian-Jia & Chin, Kwai-Sang, 2020. "Trade-in strategies in retail channel and dual-channel closed-loop supply chain with remanufacturing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 136(C).
    • Handle: RePEc:eee:transe:v:136:y:2020:i:c:s1366554518304538
    DOI: 10.1016/j.tre.2020.101898
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