The circular economy seeks to reduce waste by reusing, refurbishing, and recycling used products. It increases the resource value of used goods. In this study, we proposed a circular business gap exploiter model in which a re-commerce company exploits residual value in product systems utilization. A game-theoretic approach is used to investigate the coordination problem of a two-echelon circular supply chain with e-commerce and re-commerce companies. In addition, we proposed a coordinated structure under the revenue sharing contract and the two-part tariff contract through Nash negotiation to address the coordination problems. We compared the centralized and decentralized model findings and observed that the decentralized model shows potential for improvement. We showed model's applicability through numerical examples and sensitivity analysis to indicate how parameters such as wholesale price and retail price affect channel decisions and member profits. The results show that a two-part tariff contract may efficiently coordinate the circular supply chain. The study shows that under a circular business model, two tactics may be applied. These are extending product value and extending resource value.
PurposeReverse supply chain (RSC) is one of the ways to handle product returns efficiently. Recovery of residual value from product returns also helps in achieving sustainability. Its successful implementation requires coordination among all the channel members involved in the activities, from the acquisition to collection to the disposition of returned products. This article aims to review the literature about coordination issues in the RSC.Design/methodology/approachA systematic literature review of 151 articles published during 2004–2021 is carried out. Theory, context and methodology (TCM) framework of the literature review is used to identify the research gaps for future research directions.FindingsThis study identifies the characteristics of RSC coordination. It includes channel structures; coordination mechanisms; performance measuring parameters; the methodology applied and explored industries. The review shows that game-theoretical modeling in RSC coordination is the most commonly used method to coordinate the channels. It was found that issues like disruption, fairness and corporate social responsibility are not explored in-depth and offer much potential for future research.Originality/valueThere are very limited studies on coordination issues in the RSC. The proposed articles add value by considering RSC issues from different strategic, government, consumers' behavior and functionality decision-making point of view.
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