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A Study of the Closed-Loop Supply Chain Coordination on Waste Glass Bottles Recycling

Author

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  • Wenxue Ran
  • Fan Chen
  • Qianni Wu
  • Sen Liu

Abstract

The recycling of waste products can sharply save manufacturing cost and improve the economic efficiency and corporate-reputation. It also has a great effect on the environment and resources protection. In the management of the closed-loop supply chain, the recycling of waste products and decision-making on pricing often directly affect the supply and demand of products and the operation efficiency of supply chain. Therefore, first we take waste glass bottles as an example and establish a mathematical model to solve the profit of manufacturers and retailers solely. Then, we analyzed whole supply chain profit under a dual-channel recycling condition which is directly recycled by consumers or by retailers. Finally, we concluded that no matter what product’s price, quality, profit, or operational efficiency of supply chain is, the overall recycling is better than the single node recycling model. Based on the analysis, we developed a new model to coordinate the profit of manufacturers and retailers in the supply chain with revenue-sharing contract. A numerical study shows that this approach is applicable and effective.

Suggested Citation

  • Wenxue Ran & Fan Chen & Qianni Wu & Sen Liu, 2016. "A Study of the Closed-Loop Supply Chain Coordination on Waste Glass Bottles Recycling," Mathematical Problems in Engineering, Hindawi, vol. 2016, pages 1-9, May.
    • Handle: RePEc:hin:jnlmpe:1049514
    DOI: 10.1155/2016/1049514
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    Cited by:

    1. Yong Liu & Zhen-juan Xia & Qian-qian Shi & Qian Xu, 2021. "Pricing and coordination of waste electrical and electronic equipment under third-party recycling in a closed-loop supply chain," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(8), pages 12077-12094, August.

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