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Optimal pricing decisions for a closed-loop supply chain with retail competition under fuzziness

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  • Hua Ke
  • Yong Wu
  • Hu Huang
  • Zhiyi Chen

Abstract

In this paper, we consider a pricing and remanufacturing decision problem in a fuzzy closed-loop supply chain with one manufacturer, two competitive retailers and one third-party collector. The fuzziness is associated with collecting costs, remanufacturing costs, and customer demands. Two game models are proposed to formulate the pricing and remanufacturing decision problem under different power structures. The channel members’ optimal decisions in fuzzy environment are derived from these models. Numerical experiments are also given to explore the impacts of the power structure and fuzziness on the performance of the chain. It is found that the manufacturer has more advantages in pursuing higher expected profit when it performs as a Stackelberg leader. The existence of dominance in the closed-loop supply chain may lead to poor performance of the total system: higher sales prices, lower collecting rate, and lower expected profit of the whole supply chain. The results also show that the fuzziness of costs may have positive influence on the recycling level.

Suggested Citation

  • Hua Ke & Yong Wu & Hu Huang & Zhiyi Chen, 2018. "Optimal pricing decisions for a closed-loop supply chain with retail competition under fuzziness," Journal of the Operational Research Society, Taylor & Francis Journals, vol. 69(9), pages 1468-1482, September.
    • Handle: RePEc:taf:tjorxx:v:69:y:2018:i:9:p:1468-1482
    DOI: 10.1080/01605682.2017.1404184
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    Cited by:

    1. Wang, Qifei & Hong, Xianpei & Gong, Yeming (Yale) & Chen, Wanying (Amanda), 2020. "Collusion or Not: The optimal choice of competing retailers in a closed-loop supply chain," International Journal of Production Economics, Elsevier, vol. 225(C).
    2. Hanbo Wu & Yaxin Sun & Yutong Su & Ming Chen & Hongxia Zhao & Qi Li, 2022. "Which Is the Best Supply Chain Policy: Carbon Tax, or a Low-Carbon Subsidy?," Sustainability, MDPI, vol. 14(10), pages 1-20, May.
    3. Liping Song & Yingluo Yan & Fengmin Yao, 2020. "Closed-Loop Supply Chain Models Considering Government Subsidy and Corporate Social Responsibility Investment," Sustainability, MDPI, vol. 12(5), pages 1-27, March.

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