The Coordination and Optimization of Closed-Loop Supply Chain with Lots of Factors

Consider a closed-loop supply chain including a manufacturer, a retailer and two third party recyclers as the background. A coordination and optimization model is built by using the downside-risk function, Cournot model and government subsidy excitation function. The effect of risk characteristics,...

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Main Authors: Shi, C., Zhou, Guanglu, Bian, D., Wu, M.
Format: Journal Article
Published: 2016
Online Access:http://hdl.handle.net/20.500.11937/20113
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author Shi, C.
Zhou, Guanglu
Bian, D.
Wu, M.
author_facet Shi, C.
Zhou, Guanglu
Bian, D.
Wu, M.
author_sort Shi, C.
building Curtin Institutional Repository
collection Online Access
description Consider a closed-loop supply chain including a manufacturer, a retailer and two third party recyclers as the background. A coordination and optimization model is built by using the downside-risk function, Cournot model and government subsidy excitation function. The effect of risk characteristics, government subsidy and Cournot competition on supply chain is analyzed, and the impact of revenueand-expense sharing contract is studied in the channel, which shows that the contract cannot coordinate and optimize the closed-loop supply chain. Also, risk sharing contract and expense sharing contract are designed, which can offer the desired downside protection to the retailer, provide more profits to the agents, and accomplish channel coordination and optimization. Moreover, an application example is given for testing the effectiveness and feasibility of the contract, and the bound and rule of the contract parameters are given. Finally, by the analysis of numerical simulation and sensitivity of the model based on the contract, the validity and practicability of the model are verified, and the relationship between government subsidy, risk characteristics, competitive characteristics with the supply chain is obtained. This study provides decision support and decision-making reference for the development of remanufacturing industry.
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spelling curtin-20.500.11937-201132017-09-13T13:48:57Z The Coordination and Optimization of Closed-Loop Supply Chain with Lots of Factors Shi, C. Zhou, Guanglu Bian, D. Wu, M. Consider a closed-loop supply chain including a manufacturer, a retailer and two third party recyclers as the background. A coordination and optimization model is built by using the downside-risk function, Cournot model and government subsidy excitation function. The effect of risk characteristics, government subsidy and Cournot competition on supply chain is analyzed, and the impact of revenueand-expense sharing contract is studied in the channel, which shows that the contract cannot coordinate and optimize the closed-loop supply chain. Also, risk sharing contract and expense sharing contract are designed, which can offer the desired downside protection to the retailer, provide more profits to the agents, and accomplish channel coordination and optimization. Moreover, an application example is given for testing the effectiveness and feasibility of the contract, and the bound and rule of the contract parameters are given. Finally, by the analysis of numerical simulation and sensitivity of the model based on the contract, the validity and practicability of the model are verified, and the relationship between government subsidy, risk characteristics, competitive characteristics with the supply chain is obtained. This study provides decision support and decision-making reference for the development of remanufacturing industry. 2016 Journal Article http://hdl.handle.net/20.500.11937/20113 10.21078/JSSI-2016-307-14 restricted
spellingShingle Shi, C.
Zhou, Guanglu
Bian, D.
Wu, M.
The Coordination and Optimization of Closed-Loop Supply Chain with Lots of Factors
title The Coordination and Optimization of Closed-Loop Supply Chain with Lots of Factors
title_full The Coordination and Optimization of Closed-Loop Supply Chain with Lots of Factors
title_fullStr The Coordination and Optimization of Closed-Loop Supply Chain with Lots of Factors
title_full_unstemmed The Coordination and Optimization of Closed-Loop Supply Chain with Lots of Factors
title_short The Coordination and Optimization of Closed-Loop Supply Chain with Lots of Factors
title_sort coordination and optimization of closed-loop supply chain with lots of factors
url http://hdl.handle.net/20.500.11937/20113