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A selective survey of game-theoretic models of closed-loop supply chains

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Abstract

This paper surveys two key issues in closed-loop supply chain (CLSC) research: return functions and coordination mechanisms. The return function provides the rule according to which end-of-life/use products are returned to a collector. The coordination mechanisms consist of the adoption of a certain mechanism (e.g., a contract) to align the closed-loop supply chain members’ objectives. We describe latest thinking in these two major CLSC-related fields and suggest future research directions to be undertaken.

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Notes

  1. We were somehow surprised that no papers were found in some operations research journals. To be on the safe side, we double checked by searching each of the following journals individually : Manufacturing and Service Operations Management, Decision Science, Production Planning and Control, Transportation Science, 4OR, Operations Research, Production and Operations Management and OR Spectrum.

  2. Most of the papers reported in this section draw on Savaskan et al. (2004) and typically maximize one or more objective(s) with respect to the return rate. Needless to say that, throughout our paper, some contributions could have been classified otherwise, but any choice can be questioned and ultimately a decision must be made.

  3. He (2015) also suggested an alternative return function taking the form \(\widetilde{r }=\widetilde{r }_{0}I^{\widetilde{r } _{1}}\) and show that their overall findings hold.

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  1. ESSEC Business School, Paris, France

    Pietro De Giovanni

  2. Chair in Game Theory and Management, GERAD, HEC Montréal, Montreal, Canada

    Georges Zaccour

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We would like to thank Editor Michel Grabisch for very helpful comments. Research supported by NSERC Canada, Grant RGPIN-2016-04975.

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De Giovanni, P., Zaccour, G. A selective survey of game-theoretic models of closed-loop supply chains. 4OR-Q J Oper Res 17, 1–44 (2019). https://doi.org/10.1007/s10288-019-00399-w

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