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Pricing and Collection Rate for Remanufacturing Industry considering Capacity Constraint in Recycling Channels

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  • Lang Xu
  • Jia Shi
  • Jihong Chen

Abstract

This paper explores the decision-making and coordination mechanism of pricing and collection rate in a closed-loop supply chain with capacity constraint in recycling channels, which consists of one manufacturer and one retailer. On the basis of game theory, the equilibriums of decisions and profits in the centralized and decentralized scenarios are obtained and compared. Through the performance analysis of a different scenario, a higher saving production cost and lower competition intensity trigger the members to engage in remanufacturing. Furthermore, we try to propose a two-part tariff contract through bargaining to coordinate supply chain and achieve a Pareto improvement. The results show that when the capacity constraints in recycling channels exceed a threshold, the decisions and profit will change. Additionally, for closed-loop supply chain, the selling price is more susceptible to the influence of capacity constraint in recycling channel than the members’ profit.

Suggested Citation

  • Lang Xu & Jia Shi & Jihong Chen, 2020. "Pricing and Collection Rate for Remanufacturing Industry considering Capacity Constraint in Recycling Channels," Complexity, Hindawi, vol. 2020, pages 1-13, June.
    • Handle: RePEc:hin:complx:8391252
    DOI: 10.1155/2020/8391252
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    Cited by:

    1. Hui Li & Rou Li & Meng Shang & Yu Liu & Dandan Su, 2022. "Cooperative decisions of competitive supply chains considering carbon trading mechanism [Competing manufacturers in a retail supply chain: on contractual form and coordination]," International Journal of Low-Carbon Technologies, Oxford University Press, vol. 17, pages 571-589.
    2. Jian Wang & Wenxuan Shao, 2021. "Joint Capacity Investment, Collecting and Pricing Decisions in a Capacity Constraint Closed-Loop Supply Chain Considering Cooperation," Sustainability, MDPI, vol. 13(16), pages 1-28, August.
    3. Ruifeng Gong & Jian Xue & Ruli Liu & Jinhua Zhou & Laijun Zhao, 2022. "A closed‐loop supply chain decision model considering corporate social responsibility and value‐added services," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 1704-1720, September.

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