Case Study and Mechanism Design for the End-Of-Use Goods in Reversed Channels(2/2)

Project Details


A reversed logistics system consists of the following activities: collecting, sorting, processing, and remanufacturing the end-of-use cores, and finally remarketing the like-new remanufactured products that compete with the brand-new counterpart in the market. The reversed and forward supply system, i.e., a so-called closed-loop supply chain, is a multi-echelon dual-channel structure with competition or substitution of the two versions of the same products in the market. The existing research work mainly dealt with the problems of the end-of-use products like the consumer products or the equipment, while very little dealt with the non-consumer or equipment products. The proposal intends to study such a problem of the non-consumer and non-equipment products such as the materials used in agriculture planting. It is one of the most important environmental problems, and an emerging research area as well.Based on the principle investigator's research experiences, the first part of the proposal (the first year) will carry out a case study for the recyclable materials of mushroom planting or so-called shiitake substrate, including the field study and interview. It will clarify the reversed channel structure and involved channel members for the end-of-use material, and collect necessary data and information of the remarketing channel in the secondary market. Those data will be used for formulating the problem as an optimization model, deriving equilibrium solutions, and providing critical managerial implications to the decision makers. The second part of the proposal (the second year) will extend the research by dealing with coordination mechanisms, such as the revenue sharing, the trade-ins, and the government subsidies, and provide decision-making guideline, including collection price, collection effort, the processing equipment investment and replacement, etc. In doing so, the potential benefits can be gained by maximizing the system-wide profit and minimizing the environmental burden. The study can also be applied in a more complicated and more practical reversed channel structure, providing the mutually beneficial coordination mechanism and Pareto improvement potential.
Effective start/end date1/08/1731/07/18

UN Sustainable Development Goals

In 2015, UN member states agreed to 17 global Sustainable Development Goals (SDGs) to end poverty, protect the planet and ensure prosperity for all. This project contributes towards the following SDG(s):

  • SDG 2 - Zero Hunger
  • SDG 12 - Responsible Consumption and Production
  • SDG 17 - Partnerships for the Goals


  • Agricultureplantingmaterial
  • reversed channel
  • mechanism design
  • sustainability
  • case study


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