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Pricing and greening strategies for a dual-channel closed-loop green supply chain

  • C. MondalEmail author
  • B. C. Giri
  • T. Maiti
Article
  • 212 Downloads

Abstract

This article considers a closed-loop green supply chain with both forward and reverse dual-channels, where a manufacturer produces and sells a single green product to the potential customers through both the direct online channel (e-tail/internet) and the traditional retail channel in the forward dual-channel, and collects the used products for remanufacturing from the customers through both the retail and the direct online channels in the reverse dual-channel (Model II). The pricing and greening strategies for the channel members and the whole supply chain are derived both analytically and numerically under centralized and three decentralized scenarios viz. manufacturer-led and retailer-led decentralized scenarios and Nash game. These results are compared with those in the case when reverse logistic does not exist (Model I). Two special cases are examined when the products are returned through only online channel and only retail channel. Sensitivity analysis is performed to explore the effect of key model-parameters on optimal decisions. From numerical analysis, it is observed that the retail price in the centralized scenario is higher than that in the decentralized scenario, which contradicts the result due to double marginalization, and the retailer-led decentralized policy provides higher profit than the other decentralized policies. Model II gives better result in terms of profit of the whole supply chain, whereas Model I suggests a more environment-friendly product. It is also observed that the channel members gain more profit when the retailer only collects the used products.

Keywords

Supply chain management Dual-channel Greening level Pricing policies Remanufacturing 

Notes

Acknowledgments

The authors are sincerely thankful to the anonymous reviewers for their helpful comments and suggestions on the earlier version of the manuscript.

Funding

The funding was provided by University Grants Commission (F.No. 16-9(June 2017)/2018(NET/CSIR)) and Council of Scientific and Industrial Research (Grant Number 25(0282)/18/EMR-II).

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Copyright information

© Springer Science+Business Media, LLC, part of Springer Nature 2019

Authors and Affiliations

  1. 1.Department of MathematicsJadavpur UniversityKolkataIndia
  2. 2.Department of MathematicsGurudas CollegeKolkataIndia

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