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Reverse supply chain management with dual channel and collection disruptions: supply chain coordination and game theory approaches

Author

Listed:
  • Seyyed-Mahdi Hosseini-Motlagh

    (Iran University of Science and Technology)

  • Maryam Johari

    (Iran University of Science and Technology)

  • Mohammadreza Nematollahi

    (University of Victoria)

  • Parvin Pazari

    (Iran University of Science and Technology)

Abstract

In reverse supply chain (RSC) systems, disruptions in the collection process of used items may negatively influence the efficiency of RSC participators. Inspired by a real case study, this paper contributes to the RSC systems coordination literature by analyzing the effect of collection disruptions on the efficiency of an RSC system with dual collection channels using a coordination contract approach. Moreover, this study explores the effect of collection competition between two collection channels (collector channel and remanufacturer channel) on the acquisition prices offered to consumers as incentive schemes for returning the used items. This study determines the equilibrium solutions for selling prices of remanufactured products, acquisition prices, and transfer price under decentralization, centralization, and coordination settings. Additionally, this study incorporates the impact of collection disruptions into the remanufacturer’s and collector’s problem considering four scenarios. Furthermore, this study proposes a disruption-based two-part tariff contract to accomplish channel coordination in the RSC system with dual-collection channel under collection disruptions. Our finding reveals that the suggested coordinated scheme efficiently coordinates the disrupted RSC with dual collection channels even when under high possibility of collection disruptions. Moreover, our coordination plan is of environmental and economic benefits, as it can boost the return quantities and can increase RSC participators’ profits.

Suggested Citation

  • Seyyed-Mahdi Hosseini-Motlagh & Maryam Johari & Mohammadreza Nematollahi & Parvin Pazari, 2023. "Reverse supply chain management with dual channel and collection disruptions: supply chain coordination and game theory approaches," Annals of Operations Research, Springer, vol. 324(1), pages 215-248, May.
  • Handle: RePEc:spr:annopr:v:324:y:2023:i:1:d:10.1007_s10479-022-04909-8
    DOI: 10.1007/s10479-022-04909-8
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    2. Wang, Yong & Jiang, Qiong & Guan, Xu & Guan, Xiangyang, 2023. "Recycling channel design and coordination in a reverse supply chain with customer green preference," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 179(C).

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