Pricing and Marketing Effort Decisions in Closed-Loop Supply Chains with Dual Recycling Channel
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Siqi Zhu, Kai Liu
In order to study the effects of recycling competition on the optimal strategies. We investigate a closed-loop supply chain (CLSC) with dual recycling channel, where the retailer and the third-party recycler competitively collect used products at the same time. Base on game theory, we derive the optimal strategies for both the decentralized and the centralized channel scenarios. Subsequently, we analyze the relationship of the optimal strategies and the average recovery price and the recycling competition coefficient. We also find that: the optimal retail price is monotonically increasing in the recycling competition coefficient and the average recovery price. In contrast to that the marketing effort and collection rates of the retailer and the third-party are monotonically decreasing. This paper enriches the research results of the closed-loop supply chain (CLSC) with dual recycling channel.
Closed-loop supply chain; Dual recycling channel; Game theory; Marketing effort