Skip to main content
Log in

Coordination contracts for reverse supply chains: a state-of-the-art review

  • Original Paper
  • Published:
Journal of Business Economics Aims and scope Submit manuscript

Abstract

Various legal requirements as well as economic reasoning render the re-use of products mandatory. Hence, the field of supply chain management and coordination under the consideration of returns has constantly grown over the last decade. However, terms and definitions regarding returns and returns handling are inconsistent. Furthermore, approaches are not classified from a return-based point of view, which considerably impedes the discerning of research opportunities. We therefore provide a state-of-the-art review of the relevant literature and conduct a content and cluster analysis to propose a classification of present and future research. Furthermore, we highlight gaps in the existing literature, providing a road-map for further research. Practitioners are given an extensive overview regarding a multitude of approaches in returns management and coordination.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Fig. 1
Fig. 2
Fig. 3
Fig. 4
Fig. 5

Similar content being viewed by others

References

  • Ahmadi A, Mohabbatdar S, Sajadieh MS (2016) Optimal manufacturer-retailer policies in a supply chain with defective product and price dependent demand. J Optim Ind Eng 19:37–46

    Google Scholar 

  • Akcali E, Cetinkaya S (2011) Quantitative models for inventory and production planning in closed-loop supply chains. Int J Product Res 49(8):2373–2407

    Google Scholar 

  • Aravendan M, Panneerselvam R (2014) Literature review on network design problems in closed loop and reverse supply chains. Intell Inf Manag 6(3):104–117

    Google Scholar 

  • Arshinder K, Kanda A, Deshmukh SG (2008) Supply chain coordination: perspectives, empirical studies and research directions. Int J Prod Econ 115(4):316–335

    Google Scholar 

  • Arshinder K, Kanda A, Deshmukh SG (2011) A review on supply chain coordination: coordination mechanisms, managing uncertainty and research directions. In: Choi T-M, Cheng TE (eds) Supply chain coordination under uncertainty. Springer, Berlin, pp 39–82

    Google Scholar 

  • Atasu A, Guide VDR Jr, Van Wassenhove LN (2008) Product reuse economics in closed-loop supply chain research. Prod Oper Manag 17(5):483–496

    Google Scholar 

  • Atasu A, Van Wassenhove L (2012) An operations perspective on product take-back legislation for e-waste: theory, practice, and research needs. Prod Oper Manag 21(3):407–422

    Google Scholar 

  • Aydin R, Kwong C, Ji P (2015) Coordination of the closed-loop supply chain for product line design with consideration of remanufactured products. J Clean Prod 2015(6):1–14

    Google Scholar 

  • Becker-Peth M, Thonemann U (2016) Reference points in revenue sharing contracts-how to design optimal supply chain contracts. Eur J Oper Res 249(3):1033–1049

    Google Scholar 

  • Biswas I, Avittathur B, Chatterjee AK (2016) Impact of structure, market share and information asymmetry on supply contracts for a single supplier multiple buyer network. Eur J Oper Res 253(3):593–601

    Google Scholar 

  • Blackburn JD, Guide VDR Jr, Souza GC, Van Wassenhove LN (2004) Reverse supply chains for commercial returns. Calif Manag Rev 46(2):6–22

    Google Scholar 

  • Brandenburg M, Govindan K, Sarkis J, Seuring S (2014) Quantitative models for sustainable supply chain management: developments and directions. Eur J Oper Res 233(2):299–312

    Google Scholar 

  • Bras B, McIntosh MW (1999) Product, process, and organizational design for remanufacture—an overview of research. Robot Comput Integr Manuf 15(3):167–178

    Google Scholar 

  • Cachon GP (2003) Supply chain coordination with contracts. In: de Kok A, Graves S (eds) Handbooks in operations research and management science, 11: supply chain management: design, coordination and operation. Elsevier, Amsterdam, pp 227–339

    Google Scholar 

  • Cachon GP, Lariviere MA (2005) Supply chain coordination with revenue sharing contracts: strengths and limitations. Manag Sci 51(1):30–44

    Google Scholar 

  • Cai C (2011) Quantity discount contract coordination model of three-stage closed-loop supply chain under retailer price competition. In: Proceedings of the IEEE international conference on transportation, mechanical, and electrical engineering 2011, Changchun, China. Institute of Electrical and Electronics Engineers, New York, NY, pp 195–199

  • Chan HK, Chan FTS (2009) A review of coordination studies in the context of supply chain dynamics. Int J Prod Res 48(10):2793–2819

    Google Scholar 

  • Chang S-Y, Yeh T-Y (2013) Optimal order quantity and product modularity for a two-echelon returnable supply chain. Int J Prod Res 51(17):5210–5220

    Google Scholar 

  • Chanintrakul P, Coronado Mondragon AE, Lalwani C, Wong CY (2009) Reverse logistics network design: a state-of-the-art literature review. Int J Bus Perform Supply Chain Modell 1(1):61–81

    Google Scholar 

  • Chen J (2011a) The impact of sharing customer returns information in a supply chain with and without a buyback policy. Eur J Oper Res 213(3):478–488

    Google Scholar 

  • Chen J (2011b) Returns with wholesale-price-discount contract in a newsvendor problem. Int J Prod Econ 130(1):104–111

    Google Scholar 

  • Chen J, Bell PC (2009) The impact of customer returns on pricing and order decisions. Eur J Oper Res 195(1):280–295

    Google Scholar 

  • Chen J, Bell PC (2011a) Coordinating a decentralized supply chain with customer returns and price-dependent stochastic demand using a buyback policy. Eur J Oper Res 212(2):293–300

    Google Scholar 

  • Chen J, Bell PC (2011b) The impact of customer returns on decisions in a newsvendor problem with and without buyback policies. Int Trans Oper Res 18(4):473–491

    Google Scholar 

  • Chen J-M, Chang C-I (2014) Coordinating a closed-loop supply chain using a bargaining power approach. Int J Syst Sci Oper Logist 1 2014(2):69–83

    Google Scholar 

  • Chen J, Chen B (2016) Competing with customer returns policies. Int J Prod Res 54(7):2093–2107

    Google Scholar 

  • Chen H, Chen J, Chen YF (2006) A coordination mechanism for a supply chain with demand information updating. Int J Prod Econ 103(1):347–361

    Google Scholar 

  • Chen F (2003) Information sharing and supply chain coordination. In: de Kok A, Graves S (eds) Handbooks in operations research and management science, 11: supply chain management: design, coordination and operation. Elsevier, Amsterdam, pp 341–421

    Google Scholar 

  • Chiu C-H, Choi T-S, Hao G, Li X (2014) Innovative menu of contracts for coordinating a supply chain with multiple mean-variance retailers. Eur J Oper Res 246(3):815–826

    Google Scholar 

  • Choi T-M, Li D, Yan H (2008) Mean-variance analysis of a single supplier and retailer supply chain under a returns policy. Eur J Oper Res 184(1):356–376

    Google Scholar 

  • Chung S, Wee H, Yang P (2008) Optimal policy for a closed-loop supply chain inventory system with remanufacturing. Math Comput Modell 48(5–6):867–881

    Google Scholar 

  • Crocker KJ, Letizia P (2013) Optimal policies for recovering the value of consumer returns. Prod Oper Manag 23(10):1667–1680

    Google Scholar 

  • Dai Y, Zhou SX, Xu Y (2011) Competitive and collaborative quality and warranty management in supply chains. Prod Oper Manag 21(1):129–144

    Google Scholar 

  • De Giovanni P (2014) Environmental collaboration in a closed-loop supply chain with a reverse revenue sharing contract. Ann Oper Res 220(1):135–157

    Google Scholar 

  • De Giovanni P, Reddy PV, Zaccour G (2016) Incentive strategies for an optimal recovery program in a closed-loop supply chain. Eur J Oper Res 249(2):605–617

    Google Scholar 

  • De Giovanni P, Zaccour G (2014) A two-period game of a closed-loop supply chain. Eur J Oper Res 232(1):22–40

    Google Scholar 

  • Diallo C, Venkatadri U, Khatab A., Bhakthavatchalam S (2016) State of the art review of quality, reliability and maintenance issues in closed-loop supply chains with remanufacturing. Int J Prod Res. http://dx.doi.org/10.1080/00207543.2016.1200152

  • Elkington J (2004) Enter the triple bottom line. In: Henriques A, Richardson J (eds) The triple bottom line: does it all add up?. Earthscan, London, pp 1–16

    Google Scholar 

  • Ferguson M, Guide VDR Jr, Souza GC (2006) Supply chain coordination for false failure returns. Manuf Serv Oper Manag 8(4):376–393

    Google Scholar 

  • Ferguson M, Toktay B (2006) The effect of external competition on recovery strategies. Prod Oper Manag 15(3):351–368

    Google Scholar 

  • Fleischmann M, Bloemhof-Ruwaard JM, Dekker R, Van der Laan E, Van Nunen JEE, Van Wassenhove LN (1997) Quantitative models for reverse logistics: a review. Eur J Oper Res 103(1):1–17

    Google Scholar 

  • Gao W-J, Chen J-H (2011a) Contract design of CLSC with recycled quantity affected by the interaction of recycling price and sales volume. In: IEEE international conference on industrial engineering and engineering management, 2011, Singapore. Institute of Electrical and Electronics Engineers, New York, NY, pp 1446–1449

  • Gao W-J, Chen J-H (2011b) Linear transfer payment contract of closed-loop supply chain with multi retailers. In: Zhu R, Ma Y (eds) Lecture notes in electrical engineering, international conference on information engineering and applications, vol 154. Springer, Berlin, pp 637–643

    Google Scholar 

  • Gao J, Han H, Hou L, Wang H (2016) Pricing and effort decisions in a closed-loop supply chain under different channel power structures. J Clean Prod 112(3):2043–2057

    Google Scholar 

  • Ge J-Y, Huang P-Q, Wang Z-P (2006) Coordination and information sharing in a closed-loop supply chain with two-part tariff. In: IEEE international conference on service operations and logistics, and informatics, 2006, Shanghai, China. Institute of Electrical and Electronics Engineers, New York, NY, pp 304–309

  • Ge J-Y, Zhao W-H (2009) Coordination with incomplete information in a closed-loop supply chain under retailer collection channel. In: International conference on management science and engineering, 2009, Moskow, Russia. Institute of Electrical and Electronics Engineers, New York, NY, pp 613–618

  • Gönsch J (2014) Buying used products for remanufacturing: negotiating or posted pricing. J Bus Econ 84(Special Issue “Sustainability in Supply Chains”):715–747

    Google Scholar 

  • Govindan K, Popiuc MN (2014) Reverse supply chain coordination by revenue sharing contract: a case for the personal computers industry. Eur J Oper Res 233(2):326–336

    Google Scholar 

  • Govindan K, Popiuc M, Diabat A (2013) Overview of coordination contracts within forward and reverse supply chains. J Clean Prod 47(1):319–334

    Google Scholar 

  • Govindan K, Soleimani H (2017) A review of reverse logistics and closed-loop supply chains: a journal of cleaner production focus. J Clean Prod 142:371–384

    Google Scholar 

  • Govindan K, Soleimani H, Kannan D (2015) Reverse logistics and closed-loop supply chain: a comprehensive review to explore the future. Eur J Oper Res 240(3):603–626

    Google Scholar 

  • Govindana K, Soleimani H (2016) A review of reverse logistics and closed-loop supply chains: a journal of cleaner production focus. J Clean Prod. http://dx.doi.org/10.1016/j.jclepro.2016.03.126

  • Guide VDR Jr (2000) Production planning and control for remanufacturing: industry practice and research needs. J Oper Manag 18(4):467–483

    Google Scholar 

  • Guide VDR Jr, Harrison TP, Van Wassenhove LN (2003a) The challenge of closed-loop supply chains—an introduction to the feature issue. Interfaces 33(6):3–6

    Google Scholar 

  • Guide VDR Jr, Jayaraman V, Linton DL (2003b) Building contingency planning for closed-loop supply chains with product recovery. J Oper Manag 21(3):259–279

    Google Scholar 

  • Guide VDR Jr, Li J (2010) The potential for cannibalization of new products sales by remanufactured products. Decis Sci 41(3):547–572

    Google Scholar 

  • Guide VDR Jr, Souza GC, Van Wassenhove LN, Blackburn JD (2006) Time value of commercial product returns. Manag Sci 52(8):1200–1214

    Google Scholar 

  • Guide VDR Jr, Van Wassenhove LN (2002) The reverse supply chain. Harv Bus Rev 80(2):25–26

    Google Scholar 

  • Guide VDR Jr, Van Wassenhove LN (2006) Closed-loop supply chains: an introduction to the feature issue. Prod Oper Manag 15(3):345–350

    Google Scholar 

  • Guide VDR Jr, Van Wassenhove LN (2009) The evolution of closed-loop supply chain research. Oper Res 57(1):1–10

    Google Scholar 

  • Gungor A, Gupta P (1999) Issues in environmentally conscious manufacturing and product recovery: a survey. Comput Ind Eng 26(44):811–853

    Google Scholar 

  • Guo S, Shen B, Choi T-M, Jung S (2017) A review on supply chain contracts in reverse logistics: supply chain structures and channel leaderships. J Clean Prod 144:387–402

    Google Scholar 

  • Guo G-L, Gao W-J (2012) Contract design of CLSC with random collection quantity. In: Zhang L, Zhang C (eds) lecture notes in electrical engineering, results of the international conference on engineering education and management, 2011, Guangzhou, China, vol 122. Springer, Berlin, pp 249–255

  • Gupta S, Palsule-Desai OD (2011) Sustainable supply chain management: review and research opportunities. Indian Inst Manag Bangalore 23(4):234–245

    Google Scholar 

  • Halldorsson A, Kotzab H, Skjott-Larsen T (2009) Supply chain management on the crossroad to sustainability: a blessing or a curse? Logist Res 1(2):83–94

    Google Scholar 

  • Hariga M, Glock CH, Kim T (2016) Integrated product and container inventory model for a single-vendor single-buyer supply chain with owned and rented returnable transport items. J Optim Ind Eng 54(7):1964–1979

    Google Scholar 

  • He Y (2015) Acquisition pricing and remanufacturing decisions in a closed-loop supply chain. Int J Prod Econ 163:48–60

    Google Scholar 

  • Heese H, Kemahlioglu-Ziya E (2016) Don’t ask, don’t tell: Sharing revenues with a dishonest retailer. Eur J Oper Res 248(1):580–592

    Google Scholar 

  • Heydari J, Choi T-M, Radkhah R (2017a) Pareto improving supply chain coordination under a money-back guarantee service program. Serv Sci 9(2):91–105

    Google Scholar 

  • Heydari J, Govindan K, Jafaria A (2017b) Reverse and closed loop supply chain coordination by considering government role. Transp Res Part D Transp Environ 52(Part D):379–398

    Google Scholar 

  • Hong X, Xu L, Du P, Wang W (2015) Joint advertising, pricing and collection decisions in a closed-loop supply chain. Int J Prod Econ 167(1):12–22

    Google Scholar 

  • Hu S, Dai Y, Ma Z-J, Ye Y-S (2016) Designing contracts for a reverse supply chain with strategic recycling behavior of consumers. Int J Prod Econ 180:16–24

    Google Scholar 

  • Huang X, Choi S-M, Ching W-K, Siu T-K, Huang M (2011) On supply chain coordination for false failure returns: a quantity discount contract approach. Int J Prod Econ 133(2):634–644

    Google Scholar 

  • Huang X, Gu J-W, Ching W-K, Siu T-K (2014) Impact of secondary market on consumer return policies and supply chain coordination. Omega 45(1):57–70

    Google Scholar 

  • Ilgin MA, Gupta SM (2010) Environmentally conscious manufacturing and product recovery (ECMPRO): a review of the state of the art. J Environ Manag 91(3):563–591

    Google Scholar 

  • Jaehn F (2016) Sustainable operations. Eur J Oper Res 253(2):243–264

    Google Scholar 

  • Jayant A, Gupta P, Garg S (2012) Perspectives in reverse supply chain management: a state of the art literature review. Jordan J Mech Ind Eng 6(1):87–102

    Google Scholar 

  • Kaya O (2010) Incentive and production decisions for remanufacturing operations. Eur J Oper Res 201(2):442–453

    Google Scholar 

  • Krikke H, Le Blanc L, Van de Velde S (2004) Product modularity and the design of closed-loop supply chains. Calif Manag Rev 46(2):23–39

    Google Scholar 

  • Krumwiede DW, Sheu C (2002) A model for reverse logistics entry by third-party providers. Omega 30(5):325–333

    Google Scholar 

  • Kumar S, Putnamb V (2008) Cradle to cradle: reverse logistics strategies and opportunities across three industry sectors. Int J Prod Econ 115(2):305–315

    Google Scholar 

  • Kumar N, Guide VDR Jr, Van Wassenhove LN (2002) Managing product returns at Hewlett Packard. INSEAD

  • Lage MJ, Filhob MG (2012) Production planning and control for remanufacturing: literature review and analysis. Prod Plan Control Manag Oper 23(6):419–435

    Google Scholar 

  • Lawton C (2008) The war on returns. Wall Street J D1

  • Lee CH, Rhee B-D (2007) Channel coordination using product returns for a supply chain with stochastic salvage capacity. Eur J Oper Res 177(1):214–238

    Google Scholar 

  • Li J, Choi T-S, Cheng T (2014) Mean variance analysis of fast fashion supply chains with returns policy. IEEE Trans Syst Man Cybern Syst 44(4):422–434

    Google Scholar 

  • Li X, Li Y, Cai X (2012a) Quantity decisions in a supply chain with early returns remanufacturing. Int J Prod Res 50(8):2161–2173

    Google Scholar 

  • Li Y, Wei C, Cai X (2012b) Optimal pricing and order policies with B2B product returns for fashion products. Int J Prod Econ 135(2):637–646

    Google Scholar 

  • Li X, Wang Q (2007) Coordination mechanisms of supply chain systems. Eur J Oper Res 179(1):1–16

    Google Scholar 

  • Li Y, Da Q, Cai M (2010) Coordinated contract in reverse supply chain with collection volume agreement. In: IEEE international conference on E-product, E-service and E-entertainment, 2010, Henan, China. Institute of Electrical and Electronics Engineers, New York, NY, pp 1–4

  • Liang S (2008) The research on optimal contract design in the quality management of reverse supply chain under asymmetric information. In: IEEE international symposium on intelligent information technology application workshops, 2008, Shanghai, China. Institute of Electrical and Electronics Engineers, New York, NY, pp 877–880

  • Ling H (2010) Incentive mechanism design to the electronic products reverse supply chain of remanufacture considering the uncertainty quality. In: 2010 second international conference on communication systems. Networks and applications, Hong Kong, China, pp 379–382

  • Liu J, Mantin B, Wang H (2014) Supply chain coordination with customer returns and refund-dependent demand. Int J Prod Econ 148:81–89

    Google Scholar 

  • Maa Z-J, Zhang N, Dai Y, Hu S (2016) Managing channel profits of different cooperative models in closed-loop supply chains. Omega 59:251–262

    Google Scholar 

  • Maiti T, Giri B (2017) Two-way product recovery in a closed-loop supply chain with variable markup under price and quality dependent demand. Int J Prod Econ 183(1):259–272

    Google Scholar 

  • Mishra BK, Raghunathan S, Yue X (2007) Information sharing in supply chains: incentives for information distortion. IIE Trans 39(9):863–877

    Google Scholar 

  • Mitra S (2016) Models to explore remanufacturing as a competitive strategy under duopoly. Omega 59(Part B):215–227

    Google Scholar 

  • Mostard J, Teunter R (2006) The newsboy problem with resalable returns: a single period model and case study. Eur J Oper Res 169(1):81–96

    Google Scholar 

  • Oestlin J, Sundin E, Björkman M (2008) Importance of closed-loop supply chain relationships for product remanufacturing. Int J Prod Econ 115(2):336–348

    Google Scholar 

  • Ohmura S, Matsuo H (2016) The effect of risk aversion on distribution channel contracts: implications for return policies. Int J Prod Econ 176:29–40

    Google Scholar 

  • Pasternack B (1985) Optimal pricing and return policies for perishable commodities. Mark Sci 4(2):166–176

    Google Scholar 

  • Pishchulov G, Dobos I, Gobsch B, Pakhomova N, Richter K (2011) Remanufacturing of used products in a closed-loop supply chain with quantity discount. In: Klatte D, Lüthi H-J, Schmedders K (eds) Operations research proceedings: selected papers of the international conference on operations research, 2011, Zurich, Switzerland. GOR, Springer, Berlin, pp 457–462

    Google Scholar 

  • Pishchulov G, Dobos I, Gobsch B, Pakhomova N, Richter K (2014) A vendor-purchaser economic lot size problem with remanufacturing. J Bus Econ 84(5):749–791

    Google Scholar 

  • Pokharel S, Mutha A (2009) Perspectives in reverse logistics: a review. Resour Conserv Recycl 53(4):175–182

    Google Scholar 

  • Ran W, Chen F, Wu Q, Liu S (2016) A study of the closed-loop supply chain coordination on waste glass bottles recycling. Math Probl Eng. Article ID 1049514. https://doi.org/10.1155/2016/1049514

    Google Scholar 

  • Ren L, He Y, Song H (2014) Price and service competition of dual-channel supply chain with consumer returns. Discrete Dyn Nat Soc 2014:1–10

    Google Scholar 

  • Rogers DS, Tibben-Lembke RS (1998) Going backwards: reverse logistics trends and practices. Technical report, Reverse Logistics Executive Council, Pittsburgh, PA

  • Ruiz-Benitez R, Muriel A (2014) Consumer returns in a decentralized supply chain. Int J Prod Econ 147(Part C):573–592

    Google Scholar 

  • Saha S, Sarmah S, Moon I (2015) Dual channel closed-loop supply chain coordination with a reward-driven remanufacturing policy. Int J Prod Res 54(5):1503–1517

    Google Scholar 

  • Savaskan RC, Van Wassenhove LN (2006) Reverse channel design: the case of competing retailers. Manag Sci 52(1):1–14

    Google Scholar 

  • Seuring S, Gold S (2012) Conducting content-analysis based literature reviews in supply chain management. Supply Chain Manag Int J 17(5):544–555

    Google Scholar 

  • Seuring S, Müller M (2008) From a literature review to a conceptual framework for sustainable supply chain management. J Clean Prod 16(25):1699–1710

    Google Scholar 

  • Shi C, Bian D (2009) Closed-loop supply chain coordination by revenue sharing contract and quantity discount contract. In: IEEE international conference on information management, innovation management and industrial engineering, 2009, Xian, China. Institute of Electrical and Electronics Engineers, New York, NY, pp 581–584

  • Shi C, Bian D (2011) Closed-loop supply chain coordination by contracts under government subsidy. In: IEEE Chinese control and decision conference, 2011, Mianyang, China. Institute of Electrical and Electronics Engineers, New York, NY, pp 2747–2750

  • Shi Z, Wang N, Jia T, Chen H (2016) Reverse revenue sharing contract versus two-part tariff contract under a closed-loop supply chain system. Math Probl Eng 2016 Article ID 5464570. http://dx.doi.org/10.1155/2016/5464570

  • Si W, Ma J (2013) Corporation in a closed-loop supply chain based on remanufacturing. WSAS Trans Math 12(4):482–491

    Google Scholar 

  • Sluis S, De Giovanni P (2016) The selection of contracts in supply chains: An empirical analysis. J Oper Manag 41:1–11

    Google Scholar 

  • Souza GC (2012) Closed-loop supply chains: a critical review, and future research. Decision Sci 44(1):7–38

    Google Scholar 

  • Souza GC (2008) Closed-loop supply chains with remanufacturing. In: Chen Z-L, Raghavan S, Gray P, Greenberg H (eds) Tutorials in operations research: state-of-the-art decision-making tools in the information-intensive age. Informs, Catonsville, pp 130–153

    Google Scholar 

  • Spengler JJ (1950) Vertical integration and antitrust policy. J Political Econ 58(4):347–352

    Google Scholar 

  • Srivastava SK (2007) Green supply-chain management: a state-of-the-art literature review. Int J Manag Rev 9(1):53–80

    Google Scholar 

  • Srivastava SK, Srivastava RK (2006) Managing product returns for reverse logistics. Int J Phys Distrib Logist Manag 36(7):524–546

    Google Scholar 

  • Su X (2009) Consumer returns policies and supply chain performance. Manuf Serv Oper Manag 11(4):595–612

    Google Scholar 

  • Sundari P, Vijayalakshmi C (2016) A comprehensive review of closed loop supply chain. Global J Pure Appl Math 12(4):2785–2792

    Google Scholar 

  • Tang X, Chen Y, Qin F, Xiao Q (2010) Revenue-and-expense sharing contract of closed-loop supply chain with two markets. In: Zhang J, Xu L, Zhang X, Yi P, Jian M (eds) Logistics for sustained economic development: infrastructure, information, integration, 2010, Chengdu, China. American Society of Civil Engineers, pp 4343–4349

  • Taylor TA (2001) Channel coordination under price protection, midlife returns, and end-of-life returns in dynamic markets. Manag Sci 47(9):1220–1234

    Google Scholar 

  • Tibben-Lembke RS, Rogers DS (2002) Differences between forward and reverse logistics in a retail environment. Supply Chain Manag Int J 7(5):271–282

    Google Scholar 

  • Toffel MW (2004) Strategic management of product recovery. Calif Manag Rev 46(2):120–141

    Google Scholar 

  • Toktay B (2003) Forecasting product returns. In: Guide VDR Jr, Van Wassenhove LN (eds) Business aspects of closed-loop supply chains. Carnegie Mellon University Press, Pittsburgh, pp 203–220

    Google Scholar 

  • Twede D, Clarke R (2004) Supply chain issues in reusable packaging. J Market Channels 12(1):7–26

    Google Scholar 

  • Wang X, Disney S (2016) The bullwhip effect: progress, trends and directions. Eur J Oper Res 250(3):691–701

    Google Scholar 

  • Wang Y, Gao C (2009) Optimal centralized and decentralized ordering policies with remanufacturing and market signal. Wuhan Univ J Nat Sci 14(2):103–108

    Google Scholar 

  • Wang Z, Li Y, Zhao C, Feng Z (2013) Coordination of remanufacturing reverse supply chain with random quality based on option contract. J Inf Comput Sci 10(7):2151–2158

    Google Scholar 

  • Wang W, Zhang Y, Li Y, Zhao A, Cheng M (2017) Closed-loop supply chains under reward-penalty mechanism: retailer collection and asymmetric information. J Clean Prod 142(Part 4):3938–3955

    Google Scholar 

  • Wang Y, Zipkin P (2009) Agents’ incentives under buy-back contracts in a two-stage supply chain. Int J Prod Econ 120(2):525–539

    Google Scholar 

  • Watanabe T, Kusukawa E, Arizono I (2013) Optimal operation for green supply chain in consideration of collection incentive and quality for recycling of used products. Ind Eng Manag Syst 12(4):317–329

    Google Scholar 

  • Xiao T, Shi J (2014) Consumer returns reduction and information revelation mechanism for a supply chain. Ann Oper Res 220(1):1–21

    Google Scholar 

  • Xiao T, Shi K, Yang D (2010a) Coordination of a supply chain with consumer return under demand uncertainty. Int J Prod Econ 124(1):171–180

    Google Scholar 

  • Xiao T, Yang D, Shen H (2010b) Coordinating a supply chain with a quality assurance policy via a revenue-sharing contract. Int J Prod Res 49(1):99–120

    Google Scholar 

  • Xie JP, Liang L, Liu LH, Ieromonachou I (2016) Coordination contracts of dual-channel with cooperation advertising in closed-loop supply chains. Int J Prod Econ. http://dx.doi.org/10.1016/j.ijpe.2016.07.026

  • Xu L, Li Y, Govindan K, Xu X (2015) Consumer returns policies with endogenous deadline and supply chain coordination. Eur J Oper Res 242(1):88–99

    Google Scholar 

  • Xu C, Li B, Lan Y, Tang Y (2014) A closed-loop supply chain problem with retailing and recycling competition. Abstr Appl Anal 2014:1–14

    Google Scholar 

  • Xu Y, Xie H (2016) Consumer environmental awareness and coordination in llosed-loop supply chain. Open J Bus Manag 4(3):427–438

    Google Scholar 

  • Xu Z (2011) Option contract model of e-waste recycling reverse supply chain coordination. In: IEEE international conference on service systems and service management, 2011, Tianjin, China. Institute of Electrical and Electronics Engineers, New York, NY, pp 1–6

  • Yan N-N (2012) Dynamic models and coordination analysis of reverse supply chain with remanufacturing. Phys Proc 24(B):1357–1363

    Google Scholar 

  • Yan N-N, Sun B-W (2012) Optimal Stackelberg strategies for closed-loop supply chain with third party reverse logistics. Asia Pac J Oper Res 29(5):1–21

    Google Scholar 

  • Yang H, Chen J, Chen X, Chen B (2017) The impact of customer returns in a supply chain with a common retailer. Eur J Oper Res 256(1):139–150

    Google Scholar 

  • Yenipazarli A (2016) Managing new and remanufactured products to mitigate environmental damage under emissions regulation. Eur J Oper Res 249(2):117–130

    Google Scholar 

  • Yuan K, Gao Y (2010) Inventory decision-making models for a closed-loop supply chain system. Int J Prod Res 48(20):6155–6187

    Google Scholar 

  • Yuan K, Ma S, He B, Gao Y (2015) Inventory decision-making models for a closed-loop supply chain system with different decision-making structures. Int J Prod Res 53(1):183–219

    Google Scholar 

  • Yumei H, Fangfang W, Xin T, Liu X (2015) Two revenue sharing contracts in a three-echelon supply chain with a risk-neutral or a risk-averse retailer. J Ind Eng Manag 8(5):1428–1474

    Google Scholar 

  • Zeng AZ (2013) Coordination mechanisms for a three-stage reverse supply chain to increase profitable returns. Nav Res Logist 20(1):31–45

    Google Scholar 

  • Zhao S, Zhu Q (2015) Remanufacturing supply chain coordination under the stochastic remanufacturability rate and the random demand. Ann Oper Res 257(1–2):661–695

    Google Scholar 

  • Zhao J, Wei J, Sun X (2016) Coordination of fuzzy closed-loop supply chain with price dependent demand under symmetric and asymmetric information conditions. Ann Oper Res 257(1–2):469–489

    Google Scholar 

  • Zheng B, Yang C, Yang J, Zhang M (2017) Dual-channel closed loop supply chains: forward channel competition, power structures and coordination. Int J Prod Res 55(12):3510–3527

    Google Scholar 

  • Zou Q, Ye G (2015) Pricing-decision and coordination contract considering product design and quality of recovery product in a closed-loop supply chain. Math Probl Eng 2015:1–14

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Johannes B. Kraus.

Appendices

Appendix 1: List of acronyms

AR

Active returns

CLSC

Closed loop supply chain

CLSCM

Closed loop supply chain management

ECMPR

Environmentally Conscious Manufacturing and Product Recovery

EOL/EOU

End-of-use/end-of-life returns

EPR

Extended Producer Responsibility directives

ER

Early returns

FR

False-failure returns

FSC

Forward supply chain

FSCM

Forward supply chain management

GSC

Green supply chain

GSCM

Green supply chain management

ND

Network design

PR

Passive returns

RL

Reverse logistics

RSC

Reverse supply chain

RSCM

Reverse supply chain management

SC

Supply chain

SCC

Supply chain coordination

SCM

Supply chain management

SSCM

Sustainable supply chain management

UI

Unsold inventory

WEEE

Waste of Electrical and Electronic Equipment directive

WR

Warranty returns

Appendix 2: List of reviews including subjects

Fleischmann et al. (1997)

RL

Cachon (2003)

SCC, FSC

Gungor and Gupta (1999)

ECMPR, GSCM

Srivastava (2007)

GSCM

Li and Wang (2007)

SCC, FSC

Arshinder et al. (2008)

SCC, FSC

Atasu et al. (2008)

CLSCM

Seuring and Müller (2008)

SSCM

Souza (2008)

CLSCM

Chan and Chan (2009)

SCC, FSC

Chanintrakul et al. (2009)

RL, ND

Guide and Van Wassenhove (2009)

CLSCM

Pokharel and Mutha (2009)

RL

Ilgin and Gupta (2010)

ECMPR, GSCM

Akcali and Cetinkaya (2011)

CLSCM

Arshinder et al. (2011)

SCC, FSC

Gupta and Palsule-Desai (2011)

SSCM

Lage and Filhob (2012)

CLSCM

Souza (2012)

CLSCM

Jayant et al. (2012)

RSCM

Govindan et al. (2013)

SCC, FSC, RSC

Aravendan and Panneerselvam (2014)

CLSCM, ND

Brandenburg et al. (2014)

SSCM

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Krapp, M., Kraus, J.B. Coordination contracts for reverse supply chains: a state-of-the-art review. J Bus Econ 89, 747–792 (2019). https://doi.org/10.1007/s11573-017-0887-z

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11573-017-0887-z

Keywords

JEL Classification

Navigation