Managing channel profit and total surplus in a closed-loop supply chain network

Today's government is interested in the product recovery programme in order to encourage sustainability. The research develops four closed-loop supply chain models by considering different scenarios for the governmental subsidies and fees under price-sensitive demand. Analytical results suggest...

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Bibliographic Details
Published in:	The Journal of the Operational Research Society Vol. 69; no. 9; pp. 1345 - 1356
Main Authors:	Jena, Sarat Kumar, Ghadge, Abhijeet, Sarmah, S P
Format:	Journal Article
Language:	English
Published:	Taylor & Francis 02-09-2018 Taylor & Francis, Ltd
Subjects:	closed-loop supply chain fees Government subsidies mathematical modelling remanufacturing
Online Access:	Get full text
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Summary:	Today's government is interested in the product recovery programme in order to encourage sustainability. The research develops four closed-loop supply chain models by considering different scenarios for the governmental subsidies and fees under price-sensitive demand. Analytical results suggest that the government should provide subsidies to the manufacturer to maximise channel profit and total surplus. Higher subsidies advocates a manufacturer's intention to lean towards remanufacturing activities under given manufacturing and consumption fees scenarios. The sensitivity analysis reveals that the total surplus and channel profit increases as subsidies increase in all closed-loop supply chain models.
ISSN:	0160-5682 1476-9360
DOI:	10.1080/01605682.2017.1392408