Reverse channel choice in a closed-loop supply chain with new and differentiated remanufactured goods

Jen Ming Chen, Chu Yu Chi

Research output: Contribution to journalArticlepeer-review

6 Scopus citations

Abstract

This study deals with the problem of manufacturer’s choice of alternative reverse channel structures for collecting end-of-use products from consumers. We consider a two-echelon supply chain with one manufacturer and one retailer, based on which three reverse channel formats are proposed: an integrated model, manufacturer collection model, and retailer collection model. The main reason behind developing the models is to investigate how the wholesale price, the retail price, the collection rate, and the total channel profits are affected by the choice of the reverse channel structure. The three models are formulated as supply-constrained multi-variated optimization models and solved by using Lagrangian relaxation scheme. Our research findings suggest that the manufacturer tends to choose the direct collection system for a lower remanufacturing cost and a higher discount valuation of the remanufactured goods and to choose the indirect collection system for a lower collecting cost by the retailer.

Original languageEnglish
Pages (from-to)81-96
Number of pages16
JournalJournal of Industrial and Production Engineering
Volume36
Issue number2
DOIs
StatePublished - 17 Feb 2019

Keywords

  • channel design
  • Lagrangian relaxation
  • pricing
  • remanufacturing
  • reverse logistics
  • Supply chain management

Fingerprint

Dive into the research topics of 'Reverse channel choice in a closed-loop supply chain with new and differentiated remanufactured goods'. Together they form a unique fingerprint.

Cite this