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Pricing Decisions of a Dual-Channel Closed-Loop Supply Chain under Uncertain Demand of Indirect Channel

Author

Listed:
  • Jie Gao
  • Xiong Wang
  • Qiuling Yang
  • Qin Zhong

Abstract

The dual-channel closed-loop supply chain (CLSC) which is composed of one manufacturer and one retailer under uncertain demand of an indirect channel is constructed. In this paper, we establish three pricing models under decentralized decision making, namely, the Nash game between the manufacturer and the retailer, the manufacturer-Stackelberg game, and the retailer-Stackelberg game, to investigate pricing decisions of the CLSC in which the manufacturer uses the direct channel and indirect channel to sell products and entrusts the retailer to collect the used products. We numerically analyze the impact of customer acceptance of the direct channel ( ) on pricing decisions and excepted profits of the CLSC. The results show that when the variable changes in a certain range, the wholesale price, retail price, and expected profits of the retailer all decrease when increases, while the direct online sales price and manufacturer’s expected profits in the retailer-Stackelberg game all increase when increases. However, the optimal recycling transfer price and optimal acquisition price of used product are unaffected by .

Suggested Citation

  • Jie Gao & Xiong Wang & Qiuling Yang & Qin Zhong, 2016. "Pricing Decisions of a Dual-Channel Closed-Loop Supply Chain under Uncertain Demand of Indirect Channel," Mathematical Problems in Engineering, Hindawi, vol. 2016, pages 1-13, May.
    • Handle: RePEc:hin:jnlmpe:6053510
    DOI: 10.1155/2016/6053510
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    Cited by:

    1. Ehsan Shekarian & Simme Douwe Flapper, 2021. "Analyzing the Structure of Closed-Loop Supply Chains: A Game Theory Perspective," Sustainability, MDPI, vol. 13(3), pages 1-32, January.
    2. Hongqiang Fan & Yichen Sun & Lifen Yun & Runfeng Yu, 2023. "A Joint Distribution Pricing Model of Express Enterprises Based on Dynamic Game Theory," Mathematics, MDPI, vol. 11(19), pages 1-17, September.
    3. Kailing Liu & Quanxi Li & Haowei Zhang, 2022. "Analysis of the Impact of Remanufacturing Process Innovation on Closed-Loop Supply Chain from the Perspective of Government Subsidy," Sustainability, MDPI, vol. 14(18), pages 1-25, September.

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