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Multi-Period E-Closed-Loop Supply Chain Network Considering Consumers’ Preference for Products and AI-Push

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  • Caiquan Duan

    (School of Economics and Management, Harbin University of Science and Technology, Harbin 150080, China)

  • Guoyi Xiu

    (School of Economics and Management, Harbin University of Science and Technology, Harbin 150080, China)

  • Fengmin Yao

    (School of Economics and Management, Harbin University of Science and Technology, Harbin 150080, China)

Abstract

The remanufacturing industry plays a significant role to improve the utilization of resources and contribute to environmental protection and sustainable development. E-commerce channel (e-channel) has become an important retail channel. The multi-period closed-loop supply chain network of electronic channels (E-CLSCN) is studied. Moreover, this study considers the influence of consumers’ preference for products and artificial intelligence push (AI-push) on network balance under the conditions of dynamic and static. The network consists of manufacturers, remanufacturers, and demand markets. Remanufacturers are responsible for collecting and remanufacturing. The multi-period E-CLSCN model is established through variational inequalities. The study finds that whether dynamic or static, consumers’ preference for new products (NP) has positively correlated with the profits of manufacturers and the whole E-CLSCN. Consumers’ preference for remanufacturer products (RP) has only positively correlated with the profits of remanufactures. In the aspect of AI-push, the manufacturers’ AI-push has positively correlated with the profits of the entire players of E-CLSCN, while the remanufacturers’ AI-push has only positively correlated with the profits of the remanufacturers. Also, considering the multi-period, the sensitivity of the demand markets for the investment of manufacturers’ and remanufacturers’ AI-push gradually reduces, and the marginal benefit of AI-push gradually decreases. Finally, this paper addresses interesting managerial insights from the perspective of government and enterprises. Under the dual objectives of environmental protection and economic interests of enterprises, this study provides a reference for governments and enterprises to develop relevant dynamic policies. Namely, the government formulates dynamic environmental protection measures, and enterprises formulate dynamic strategic plans and implement government policies. While promoting the management level of E-CLSCN, it effectively boosts the development of the remanufacturing industry and recycling sustainable economy.

Suggested Citation

  • Caiquan Duan & Guoyi Xiu & Fengmin Yao, 2019. "Multi-Period E-Closed-Loop Supply Chain Network Considering Consumers’ Preference for Products and AI-Push," Sustainability, MDPI, vol. 11(17), pages 1-32, August.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:17:p:4571-:d:260130
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    2. Rocío González-Sánchez & Davide Settembre-Blundo & Anna Maria Ferrari & Fernando E. García-Muiña, 2020. "Main Dimensions in the Building of the Circular Supply Chain: A Literature Review," Sustainability, MDPI, vol. 12(6), pages 1-25, March.
    3. Tianyi Guo & Chaonan Li & Yan Chen, 2022. "Remanufacturing Strategy under Cap-and-Trade Regulation in the Presence of Assimilation Effect," Sustainability, MDPI, vol. 14(5), pages 1-19, March.
    4. Zhitao Xu & Adel Elomri & Roberto Baldacci & Laoucine Kerbache & Zhenyong Wu, 2024. "Frontiers and trends of supply chain optimization in the age of industry 4.0: an operations research perspective," Annals of Operations Research, Springer, vol. 338(2), pages 1359-1401, July.

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