A Cross-Channel Return Policy in a Green Dual-Channel Supply Chain Considering Spillover Effect

Abstract

With the advent of the era of “New Retail”, many manufacturers and retailers have begun to provide cross-channel return services to increase competitiveness. Our study takes return policy into a green dual-channel supply chain, wherein a manufacturer creates and sells green products simultaneously. We investigate the pricing and greening strategies for the supply chain players in the cases of providing and not providing cross-channel return service by employing the Stackelberg model under the hypothesis of a consistent pricing strategy. By comparing the equilibrium results of two cases, we find that the retailer will cooperate with the manufacturer to employ the cross-channel return policy when the spillover effect is greater than a threshold. Additionally, the green level of products is higher than before. The threshold decreases with consumers’ sensitivity to green products, which implies that the manufacturer is motivated to conduct marketing programs to enhance consumers’ willingness to buy green products. Moreover, we propose a contract to coordinate the supply chain. Finally, we discuss the scenarios if the supply chain implements a differential pricing strategy. Interestingly, the green level and the profits of the whole supply chain are greater than that under a consistent pricing strategy. However, the profits of the retailer are lower than profits in the other scenario, which is not beneficial to creating a stable green supply chain.

How Can Construction and Demolition Waste Recycling Public–Private Partnership Projects Performance Compensate during the Operation Period? A Two-Stage Perspective of Recycling and Remanufacturing

“…To verify the correctness of the above models and propositions, this section uses MATLAB software for numerical simulation and model analysis. In the case of meeting the assumptions of the model in this paper, we refer to the assignment ideas in the literature [60][61][62]. Table 3 shows the initial values of the parameters and the source paper.…”

Green Dual-Channel Supply Chain Model With Considering Product Returns and Remanufacturing Process

“…Based Equation (7),and ( 15), the GDCSC model in the model (a) is obtained, max Π 𝑎 (𝑃 𝑚 , 𝑃 𝑟 , 𝑥) = Π 𝑚 𝑎 + Π 𝑟. 𝑎 (17) Then in the model (b), the GDCSC model in the decentralization scenario can be constructed by using Equation ( 9) and ( 16), thus obtaining max Π 𝑏 (𝑃 𝑚 , 𝑃 𝑟 , 𝑥) = Π 𝑚 𝑏 + Π 𝑟 𝑏 . (18) In this section, the GDCSC model has been obtained in model (a) and model (b) using the centralized scenario. Next, the optimal solution for each model obtained is determined.…”

“…An application is given by performing numerical simulations on a green dual-channel supply chain model considering product returns and remanufacturing processes. The parameter values are taken from the research of Chang et al [17] and Zhang et al [18], and numerical simulations. The parameter values used in this study are presented in Table 2.…”

Product Greenness and Pricing Strategy of Supply Chain Incorporating Asymmetric Heterogeneous Preferences

“…Regarding dual-channel, Zhang et al [18] investigated the greening strategies with cross-channel return service, and found that the retailer would cooperate with the manufacturer when the spillover effect was greater than a threshold by comparing results with those without cross-channel return service; Heydari et al [19] obtained the optimal decision on product greenness of the manufacturer, e-channel price of the distributor, and retail price of the retailer, and developed a coordinated decision model to enhance greenness and reduce price in both the e-channel and retail channel.…”