Volume 55, Number 5, September-October 2021
|Page(s)||2963 - 2990|
|Published online||13 October 2021|
Cost-sharing strategy for recycling and service investment in a closed-loop supply chain
Business School of Sichuan University, Chengdu 610065, P.R. China
* Corresponding author: firstname.lastname@example.org
Accepted: 16 September 2021
This paper investigates the cost-sharing strategies of a manufacturer, a retailer and a third-party recycler in a Stackelberg game considering government subsidy and retailer’s service effort. Next, we construct profit functions of the manufacturer, the retailer and the third-party recycler considering government subsidy and service effort for four scenarios: no cost-sharing (N), service investment cost-sharing (I), recycling investment cost-sharing (II), and both service and recycling investment cost-sharing (III). Furthermore, we obtain the optimal results and discuss the impact of cost-sharing ratio, service cost coefficient, government subsidy and service sensitivity coefficient on profits and social net benefits. The results show that the service investment cost-sharing strategy cannot achieve profit coordination, and under certain conditions, the recycling investment cost-sharing strategy and the service and recycling investment cost-sharing strategy can achieve profit coordination. In addition, changes in different factors such as government subsidy, service cost coefficients, and service sensitivity coefficients will affect the effectiveness of cost-sharing strategies.
Mathematics Subject Classification: 91A80
Key words: Closed-loop supply chain / government subsidy / service effort / cost-sharing
© The authors. Published by EDP Sciences, ROADEF, SMAI 2021
This is an Open Access article distributed under the terms of the Creative Commons Attribution License (https://creativecommons.org/licenses/by/4.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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