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Pricing and remanufacturing decisions in two competing supply chains

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  • Jie Wei
  • Jing Zhao

Abstract

This paper considers the pricing and remanufacturing decisions in a duopoly market with two competing supply chains, which compete at both manufacturer and retailer levels. There are one manufacturer and one retailer in each supply chain, one manufacturer produces the new product directly from raw material, while the other manufacturer has incorporated a remanufacturing process for used product into the original production system. Based on different industry organisation structures and the chain members’ competing forms, five game decision models are established to explore the chain members’ optimal strategies on price and/or remanufacturing, and the corresponding equilibrium solutions are obtained. Finally, we carry out the sensitivity analysis through numerical studies of some key parameters for examining their influences on the pricing decisions and chain members’ maximum profits. On the basis of comparison and analysis, some managerial insights are derived.

Suggested Citation

  • Jie Wei & Jing Zhao, 2015. "Pricing and remanufacturing decisions in two competing supply chains," International Journal of Production Research, Taylor & Francis Journals, vol. 53(1), pages 258-278, January.
    • Handle: RePEc:taf:tprsxx:v:53:y:2015:i:1:p:258-278
    DOI: 10.1080/00207543.2014.951088
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    Cited by:

    1. F. Shakouhi & R. Tavakkoli-Moghaddam & A. Baboli & A. Bozorgi-Amiri, 2023. "A competitive pharmaceutical supply chain under the marketing mix strategies and product life cycle with a fuzzy stochastic demand," Annals of Operations Research, Springer, vol. 324(1), pages 1369-1397, May.
    2. 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.
    3. Wu, Xiaole & Zhou, Yu, 2017. "The optimal reverse channel choice under supply chain competition," European Journal of Operational Research, Elsevier, vol. 259(1), pages 63-66.
    4. 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.
    5. Sun, Shuxing & Zhang, Bin, 2022. "Operation strategies for nanostore in community group buying," Omega, Elsevier, vol. 110(C).
    6. Byung Duk Song & Young Dae Ko, 2017. "Effect of Inspection Policies and Residual Value of Collected Used Products: A Mathematical Model and Genetic Algorithm for a Closed-Loop Green Manufacturing System," Sustainability, MDPI, vol. 9(9), pages 1-14, September.
    7. He, Qidong & Wang, Nengmin & Browning, Tyson R. & Jiang, Bin, 2022. "Competitive collection with convenience-perceived customers," European Journal of Operational Research, Elsevier, vol. 303(1), pages 239-254.
    8. Ghosh, Debabrata & Gouda, Sirish & Shankar, Ravi & Swami, Sanjeev & Thomas, Vinu Cheruvil, 2018. "Strategic decision making under subscription-based contracts for remanufacturing," International Journal of Production Economics, Elsevier, vol. 200(C), pages 134-150.
    9. Chen, Zhisong & Su, Shong-Iee Ivan, 2022. "Countervailing effect and mitigation policy: A game-theoretical study in dual international competing photovoltaic supply chains," Renewable Energy, Elsevier, vol. 183(C), pages 160-171.
    10. Renzheng Xue & Fengbin Zhang & Feng Tian, 2018. "A System Dynamics Model to Evaluate Effects of Retailer-Led Recycling Based on Dual Chains Competition: A Case of e-Waste in China," Sustainability, MDPI, vol. 10(10), pages 1-18, September.
    11. Hong, Xianpei & Xu, Lei & Du, Peng & Wang, Wenjuan, 2015. "Joint advertising, pricing and collection decisions in a closed-loop supply chain," International Journal of Production Economics, Elsevier, vol. 167(C), pages 12-22.
    12. Wang, Nengmin & He, Qidong & Jiang, Bin, 2019. "Hybrid closed-loop supply chains with competition in recycling and product markets," International Journal of Production Economics, Elsevier, vol. 217(C), pages 246-258.
    13. Raghu Nandan Giri & Shyamal Kumar Mondal & Manoranjan Maiti, 2021. "Analysis of strategies for substitutable and complementary products in a two-levels fuzzy supply chain system," Operational Research, Springer, vol. 21(1), pages 485-524, March.
    14. Xiaomin Zhao & Xueli Bai & Zhihui Fan & Ting Liu, 2020. "Game Analysis and Coordination of a Closed-Loop Supply Chain: Perspective of Components Reuse Strategy," Sustainability, MDPI, vol. 12(22), pages 1-19, November.
    15. Sheng-Qiang Gu & Yong Liu & Hao Yu, 2023. "Power battery recycling strategy with government rewards and punishments," OPSEARCH, Springer;Operational Research Society of India, vol. 60(1), pages 501-526, March.
    16. Niu, Baozhuang & Xu, Haotao & Chen, Lei, 2022. "Creating all-win by blockchain in a remanufacturing supply chain with consumer risk-aversion and quality untrust," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 163(C).
    17. Taleizadeh, Ata Allah & Sadeghi, Razieh, 2019. "Pricing strategies in the competitive reverse supply chains with traditional and e-channels: A game theoretic approach," International Journal of Production Economics, Elsevier, vol. 215(C), pages 48-60.
    18. Chen, Zhisong & Su, Shong-Iee Ivan, 2020. "International competition and trade conflict in a dual photovoltaic supply chain system," Renewable Energy, Elsevier, vol. 151(C), pages 816-828.
    19. He, Qidong & Wang, Nengmin & Yang, Zhen & He, Zhengwen & Jiang, Bin, 2019. "Competitive collection under channel inconvenience in closed-loop supply chain," European Journal of Operational Research, Elsevier, vol. 275(1), pages 155-166.

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