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How manufacturer's integration strategies affect closed-loop supply chain performance

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  • Jie Wei
  • Weiyu Chen
  • Guoxin Liu

Abstract

This paper considers a manufacturer's optimal integration strategy in a three-level closed-loop supply chain including one manufacturer, one retailer and two competing collectors. We study how the manufacturer's integration strategies of retailing and collecting channels affect the closed-loop supply chain members' optimal decisions and maximum profits, and also investigate the interaction between the collection competition and the manufacturer's integration strategies. Through comparing various integration strategies, some new and interesting management insights are obtained: to improve collection rate of the whole closed-loop supply chain and maximise the surplus profit of integration strategy, the manufacturer's best opt is to integrate the retailer and only one collector when the collection competition is intense.

Suggested Citation

  • Jie Wei & Weiyu Chen & Guoxin Liu, 2021. "How manufacturer's integration strategies affect closed-loop supply chain performance," International Journal of Production Research, Taylor & Francis Journals, vol. 59(14), pages 4287-4305, July.
    • Handle: RePEc:taf:tprsxx:v:59:y:2021:i:14:p:4287-4305
    DOI: 10.1080/00207543.2020.1762016
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    Cited by:

    1. Wang, Tong-Yuan & Chen, Zhen-Song & He, Peng & Govindan, Kannan & Skibniewski, Miroslaw J., 2023. "Alliance strategy in an online retailing supply chain: Motivation, choice, and equilibrium," Omega, Elsevier, vol. 115(C).
    2. 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).
    3. 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).
    4. Brojeswar Pal & Shib Sankar Sana, 2022. "Game-theoretic analysis in an environment-friendly competitive closed-loop dual-channel supply chain with recycling," Operations Management Research, Springer, vol. 15(3), pages 627-646, December.
    5. Yang, Y. & Lin, J. & Hedenstierna, C.P.T. & Zhou, L., 2023. "The more the better? The impact of the number and location of product recovery options on the system dynamics in a closed-loop supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 175(C).

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