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Reverse channel selection decisions with a joint third-party recycler

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  • Xiang Chu
  • Qiuyan Zhong
  • Xue Li

Abstract

In recent years, Internet-based firms have been increasingly engaged in recycling used products, taking advantage of economies of scale by serving a number of manufacturers. However, most studies on the recycling channel of remanufacturing to date only consider the case of a single manufacturer in a closed-loop supply chain. To address this gap, we develop a Stackelberg game model and show that the joint third-party (J3P) collection mode serving multiple manufacturers may outperform individual retailer- and manufacturer-managed modes, as opposed to existing findings considering a single manufacturer. It is optimal for manufacturers to authorise a large-scale J3P to collect used products. In addition, we show that the J3P can design a two-part tariff contract for the manufacturers to overcome the double marginalisation and collective action problems in decentralised supply chains. Our results provide guidance for enterprises and the government on recycling decisions in the era of a network economy.

Suggested Citation

  • Xiang Chu & Qiuyan Zhong & Xue Li, 2018. "Reverse channel selection decisions with a joint third-party recycler," International Journal of Production Research, Taylor & Francis Journals, vol. 56(18), pages 5969-5981, September.
    • Handle: RePEc:taf:tprsxx:v:56:y:2018:i:18:p:5969-5981
    DOI: 10.1080/00207543.2018.1442944
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    Cited by:

    1. Zhuzhu Song & Wansheng Tang & Ruiqing Zhao, 2022. "Implications of economies of scale and scope for round-trip shipping canvassing with empty container repositioning," Annals of Operations Research, Springer, vol. 309(2), pages 485-515, February.
    2. Mohammed Alkahtani & Aiman Ziout & Bashir Salah & Moath Alatefi & Abd Elatty E. Abd Elgawad & Ahmed Badwelan & Umar Syarif, 2021. "An Insight into Reverse Logistics with a Focus on Collection Systems," Sustainability, MDPI, vol. 13(2), pages 1-22, January.
    3. Fu, Lingxian & Tang, Jie & Meng, Fanyong, 2021. "A disease transmission inspired closed-loop supply chain dynamic model for product collection," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 152(C).
    4. 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.
    5. Chu, Xiang & Wang, Rui & Lin, Yan & Li, Yantong, 2022. "Building trust in online trade-in programs with a blockchain-enabled system," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    6. Zhang Yu & Abdul Rehman Khan & Hafiz Muhammad Zia-ul-haq & Ma Tianshan & Muhammad Tanveer & Arshian Sharif, 2023. "Game analysis on the internet + closed-loop supply chain considering the manufacturer's impact on promotional effect," Operations Management Research, Springer, vol. 16(2), pages 992-1002, June.
    7. Xu, Xiaoping & Yan, Luling & Choi, Tsan-Ming & Cheng, T.C.E., 2023. "When Is It Wise to Use Blockchain for Platform Operations with Remanufacturing?," European Journal of Operational Research, Elsevier, vol. 309(3), pages 1073-1090.
    8. Yong Liu & Zhen-juan Xia & Qian-qian Shi & Qian Xu, 2021. "Pricing and coordination of waste electrical and electronic equipment under third-party recycling in a closed-loop supply chain," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(8), pages 12077-12094, August.
    9. Zhou, Yongyi & Zhang, Yulin & Wahab, M.I.M. & Goh, Mark, 2023. "Channel leadership and performance for a closed-loop supply chain considering competition," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 175(C).
    10. Liang Shen & Runjie Fan & Zhaoqing Yu & Yuyan Wang, 2021. "The Service Strategy and Influencing Factors of Online Recycling of Used Mobile Phones," Mathematics, MDPI, vol. 9(21), pages 1-24, October.
    11. Huaixi Song & Quanxi Li & Kailing Liu & Yi Li, 2022. "The Recycling Strategy of Closed-Loop Supply Chain Considering CSR under the Government’s Reward–Penalty Policy," Sustainability, MDPI, vol. 14(21), pages 1-16, October.
    12. Wei He & Lan Liang & Kai Wang, 2020. "Economic and Environmental Implications of Quality Choice under Remanufacturing Outsourcing," Sustainability, MDPI, vol. 12(3), pages 1-18, January.

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