IDEAS home Printed from https://ideas.repec.org/a/sae/sagope/v13y2023i4p21582440231218065.html
   My bibliography  Save this article

Price Optimization of Closed-loop Supply Chain With Uncertain Demand Under Multi-channel Cross Influence

Author

Listed:
  • Lingli Shu
  • Xuedong Liang
  • Jingyuan Yao
  • Peng Luo

Abstract

Face ubiquitous demand uncertainty and channel cross-influence, how to make price decision to improve profits has become an issue faced by decision makers. This paper concerns multichannel price optimization for a closed-loop supply chain and constructs the deterministic and uncertain models. Taking a real closed-loop clothing supply chain as an example, we carry out parameter assumptions and numerical experiments and analyze the simulation results. Our analysis reveals: (1) The supply chain is more profitable under centralized policy. The company can maximize profits by expanding upstream and downstream. (2) When experienced experts give more accurate error terms, the companies can accurately predict the demand and make price decisions. (3) Raising wholesale price will not maintain manufacturer’s profits growing. Beyond the threshold, the manufacturer’s profit will decrease. (4) The channel cross-influence is beneficial to the supply chain. When other factors remain unchanged, the greater the cross price-demand sensitivity coefficient in a channel, the higher the retailing price and the total profit of the supply chain will be. Decision makers can adjust pricing in time to adapt to changes of cross-influence and uncertain demand. The findings provide theoretical guidance for each player in the closed-loop supply chain.

Suggested Citation

  • Lingli Shu & Xuedong Liang & Jingyuan Yao & Peng Luo, 2023. "Price Optimization of Closed-loop Supply Chain With Uncertain Demand Under Multi-channel Cross Influence," SAGE Open, , vol. 13(4), pages 21582440231, December.
    • Handle: RePEc:sae:sagope:v:13:y:2023:i:4:p:21582440231218065
    DOI: 10.1177/21582440231218065
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/21582440231218065
    Download Restriction: no
    File URL: https://libkey.io/10.1177/21582440231218065?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Wu, Cheng-Han, 2021. "A dynamic perspective of government intervention in a competitive closed-loop supply chain," European Journal of Operational Research, Elsevier, vol. 294(1), pages 122-137.
    2. B.C. Giri & Christoph H. Glock, 2017. "A closed-loop supply chain with stochastic product returns and worker experience under learning and forgetting," International Journal of Production Research, Taylor & Francis Journals, vol. 55(22), pages 6760-6778, November.
    3. Yan, Bo & Wang, Tao & Liu, Yan-ping & Liu, Yang, 2016. "Decision analysis of retailer-dominated dual-channel supply chain considering cost misreporting," International Journal of Production Economics, Elsevier, vol. 178(C), pages 34-41.
    4. Hua Ke & Yong Wu & Hu Huang, 2018. "Competitive Pricing and Remanufacturing Problem in an Uncertain Closed-Loop Supply Chain with Risk-Sensitive Retailers," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 35(01), pages 1-21, February.
    5. Bimal Kumar Mawandiya & J. K. Jha & Jitesh J. Thakkar, 2020. "Optimal production-inventory policy for closed-loop supply chain with remanufacturing under random demand and return," Operational Research, Springer, vol. 20(3), pages 1623-1664, September.
    6. Xianpei Hong & Xinlu Cao & Yeming Gong & Wanying (amanda) Chen, 2021. "Quality information acquisition and disclosure with green manufacturing in a closed-loop supply chain," Post-Print hal-03188234, HAL.
    7. Hong, Xianpei & Govindan, Kannan & Xu, Lei & Du, Peng, 2017. "Quantity and collection decisions in a closed-loop supply chain with technology licensing," European Journal of Operational Research, Elsevier, vol. 256(3), pages 820-829.
    8. He, Yuanjie, 2015. "Acquisition pricing and remanufacturing decisions in a closed-loop supply chain," International Journal of Production Economics, Elsevier, vol. 163(C), pages 48-60.
    9. Giri, B. C. & Glock, C. H., 2017. "A closed-loop supply chain with stochastic product returns and worker experience under learning and forgetting," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 88878, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    10. Hong, Xianpei & Cao, Xinlu & Gong, Yeming & Chen, Wanying, 2021. "Quality information acquisition and disclosure with green manufacturing in a closed-loop supply chain," International Journal of Production Economics, Elsevier, vol. 232(C).
    11. Roozbeh Nia, Ali & Hemmati Far, Mohammad & Akhavan Niaki, Seyed Taghi, 2014. "A fuzzy vendor managed inventory of multi-item economic order quantity model under shortage: An ant colony optimization algorithm," International Journal of Production Economics, Elsevier, vol. 155(C), pages 259-271.
    12. Aijun Liu & Yan Zhang & Senhao Luo & Jie Miao, 2020. "Dual-Channel Global Closed-Loop Supply Chain Network Optimization Based on Random Demand and Recovery Rate," IJERPH, MDPI, vol. 17(23), pages 1-32, November.
    13. Chunhua Tang & Honglin Yang & Erbao Cao & Kin Keung Lai, 2018. "Channel competition and coordination of a dual-channel supply chain with demand and cost disruptions," Applied Economics, Taylor & Francis Journals, vol. 50(46), pages 4999-5016, October.
    14. Yang, P.C. & Chung, S.L. & Wee, H.M. & Zahara, E. & Peng, C.Y., 2013. "Collaboration for a closed-loop deteriorating inventory supply chain with multi-retailer and price-sensitive demand," International Journal of Production Economics, Elsevier, vol. 143(2), pages 557-566.
    15. Alegoz, Mehmet & Kaya, Onur & Bayindir, Z. Pelin, 2021. "A comparison of pure manufacturing and hybrid manufacturing–remanufacturing systems under carbon tax policy," European Journal of Operational Research, Elsevier, vol. 294(1), pages 161-173.
    16. Kyparisis, George J. & Koulamas, Christos, 2018. "The price-setting newsvendor problem with nonnegative linear additive demand," European Journal of Operational Research, Elsevier, vol. 269(2), pages 695-698.
    17. Jingfeng Dong & Shufa Sun & Guichen Gao & Ruoyi Yang, 2021. "Pricing and strategy selection in a closed-loop supply chain under demand and return rate uncertainty," 4OR, Springer, vol. 19(4), pages 501-530, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gunasekara, Lahiru & Robb, David J. & Zhang, Abraham, 2023. "Used product acquisition, sorting and disposition for circular supply chains: Literature review and research directions," International Journal of Production Economics, Elsevier, vol. 260(C).
    2. Matsui, Kenji, 2023. "Dual-recycling channel reverse supply chain design of recycling platforms under acquisition price competition," International Journal of Production Economics, Elsevier, vol. 259(C).
    3. A. K. Gaula & J. K. Jha, 2024. "Pricing strategy with quality improvement in a dual collection channel closed-loop supply chain under return uncertainty," Operational Research, Springer, vol. 24(2), pages 1-40, June.
    4. Chen, Daqiang & Ignatius, Joshua & Sun, Danzhi & Zhan, Shalei & Zhou, Chenyu & Marra, Marianna & Demirbag, Mehmet, 2019. "Reverse logistics pricing strategy for a green supply chain: A view of customers' environmental awareness," International Journal of Production Economics, Elsevier, vol. 217(C), pages 197-210.
    5. Zhang, Guangxia & Gong, Yeming & Hong, Xianpei, 2022. "Free rider effect of quality information disclosure in remanufacturing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 166(C).
    6. 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.
    7. M. Masanta & B. C. Giri, 2022. "A manufacturing–remanufacturing supply chain model with learning and forgetting in inspection under consignment stock agreement," Operational Research, Springer, vol. 22(4), pages 4093-4117, September.
    8. B. C. Giri & M. Masanta, 2022. "A closed-loop supply chain model with uncertain return and learning-forgetting effect in production under consignment stock policy," Operational Research, Springer, vol. 22(2), pages 947-975, April.
    9. Yunting Feng & Yong Geng & Ge Zhao & Mengya Li, 2022. "Carbon Emission Constraint Policy in an OEM and Outsourcing Remanufacturer Supply Chain with Consumer Preferences," IJERPH, MDPI, vol. 19(8), pages 1-16, April.
    10. Yu, Yanan & He, Yong & Guo, Xiaotong & Li, Dong & Huang, Hongfu, 2024. "Quality disclosure strategy with asymmetric demand information in food supply chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 183(C).
    11. Lang Liu & Lulu Wang & Taisheng Huang & Jinhui Pang, 2022. "The Differential Game of a Closed-Loop Supply Chain with Manufacturer Competition Considering Goodwill," Mathematics, MDPI, vol. 10(11), pages 1-18, May.
    12. Liu, Jian & Mantin, Benny & Song, Xuefeng, 2022. "Rent, sell, and remanufacture: The manufacturer's choice when remanufacturing can be outsourced," European Journal of Operational Research, Elsevier, vol. 303(1), pages 184-200.
    13. Jiang, Zhong-Zhong & He, Na & Huang, Song, 2021. "Government penalty provision and contracting with asymmetric quality information in a bioenergy supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 154(C).
    14. Pietro De Giovanni & Georges Zaccour, 2022. "A selective survey of game-theoretic models of closed-loop supply chains," Annals of Operations Research, Springer, vol. 314(1), pages 77-116, July.
    15. Zhang, Ling & Zhang, Zheng, 2022. "Dynamic analysis of the decision of authorized remanufacturing supply chain affected by government subsidies under cap-and-trade policies," Chaos, Solitons & Fractals, Elsevier, vol. 160(C).
    16. Li, Zhitang & Zhang, Cuihua & Xu, Henry & Lyu, Ruxia, 2023. "The optimal vehicle product line strategy considering product information disclosure under government carbon regulation," Omega, Elsevier, vol. 119(C).
    17. Genc, Talat S. & De Giovanni, Pietro, 2018. "Optimal return and rebate mechanism in a closed-loop supply chain game," European Journal of Operational Research, Elsevier, vol. 269(2), pages 661-681.
    18. Zhang, Yanzi & Berenguer, Gemma & Zhang, Zhi-Hai, 2024. "A subsidized reverse supply chain in the Chinese electronics industry," Omega, Elsevier, vol. 122(C).
    19. Ma, Xueli & Mao, Jinyue & Luo, Qian & Bai, Qingguo, 2024. "Effects of information superiority and green optimism on green supply chains under different power structures," International Journal of Production Economics, Elsevier, vol. 268(C).
    20. He, Yuanjie, 2017. "Supply risk sharing in a closed-loop supply chain," International Journal of Production Economics, Elsevier, vol. 183(PA), pages 39-52.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:sagope:v:13:y:2023:i:4:p:21582440231218065. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.