Location-inventory decisions for closed-loop supply chain management in the presence of the secondary market

Guo, Huan; Zhang, Ying; Zhang, Chunnan; Liu, Yu; Zhou, Yuan

doi:10.1007/s10479-018-3039-0

Cited by 14 publications

(15 citation statements)

References 31 publications

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“…Electronic and electrical products have the characteristics of fast replacement and short service life. WEEE pollutes the environment seriously, and the processing of WEEE imposes a heavy burden on government finances [3,4]. Therefore, this study is based on a closed-loop supply chain with recycling WEEE as the core.…”

Section: Model Analysismentioning

confidence: 99%

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Research on Closed-Loop Supply Chain Decision-Making in Different Cooperation Modes with Government’s Reward-Penalty Mechanism

Quan-xi¹,

Zhang²,

Liu³

2021

Sustainability

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In closed-loop supply chains (CLSC), manufacturers, retailers, and recyclers perform their duties. Due to the asymmetry of information among enterprises, it is difficult for them to maximize efficiency and profits. To maximize the efficiency and profit of the CLSC, this study establishes five cooperation models of CLSC under the government‘s reward–penalty mechanism. We make decisions on wholesale prices, retail prices, transfer payment prices, and recovery rates relying on the Stackelberg game method and compare the optimal decisions. This paper analyzes the impact of the government reward-penalty mechanism on optimal decisions and how members in CLSC choose partners. We find that the government’s reward-penalty mechanism can effectively increase the recycling rate of used products and the total profit of the closed-loop supply chain. According to the calculation results of the models, under the government’s reward-penalty mechanism, the cooperation can improve the CLSC’s used products recycling capacity and profitability. In a supply chain, the more members participate in the cooperation, the higher profit the CLSC obtain. However, the cooperation mode of all members may lead to monopoly, which is not approved by government and customers.

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Section: Model Analysismentioning

confidence: 99%

“…It cooperates with many mobile phone manufacturers to recycle used mobile phones online. It helps reduce environmental pollution by reducing the amount of discarded mobile phones [4]. In addition, increasing jobs in CLSC contributes to social stability and improves social welfare.…”

Section: Introductionmentioning

confidence: 99%

Research on Closed-Loop Supply Chain Decision-Making in Different Cooperation Modes with Government’s Reward-Penalty Mechanism

Quan-xi¹,

Zhang²,

Liu³

2021

Sustainability

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“…Secondary markets have become an important marketplace for business organizations to sell off excess inventory or used products, and it is a common practice to resell returned products of good quality at a discounted price in a secondary market. Because of their great importance in practice, secondary markets have attracted much research attention in the literature [22]. For example, Angelus [23] investigates how to dispose excess inventory of new products in secondary markets, and more recent works are extended to refurbished products by considering refurbishing authorization strategy [9], product upgrade decisions [24], and consumer return policies [25].…”

Section: Literature Reviewmentioning

confidence: 99%

A Location-Inventory Problem in a Closed-Loop Supply Chain with Secondary Market Consideration

Guo

Zhang

et al. 2018

Sustainability

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To design sustainable supply chain systems in today's business environment, this paper studies a location-inventory problem in a closed-loop supply chain by considering the sales of new and used products in the primary and secondary markets, respectively. This problem is formulated as a mixed-integer nonlinear program to optimize facility location and inventory management decisions jointly, and the logistics flows between the two markets are modeled dynamically. To solve this problem efficiently, a new heuristic approach is also developed by introducing an effective adaptive mechanism into differential evolution. Finally, numerical experiments are presented to validate the solution approach and provide valuable managerial insight. This paper makes a meaningful contribution to the literature by incorporating the secondary market into the study of closed-loop supply chains, and practically, it is also greatly beneficial to improve the sustainability and efficiency of modern supply chains.

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“…For example, Diabat et al [19] study a closedloop location-inventory problem by considering spare parts, Asl-Najafi et al [20] study a dynamic closed-loop locationinventory problem under disruption risk, and Kaya et al [21] and Guo et al [22] extend such studies by incorporating pricing and vehicle routing decisions in CLSCs, respectively. Since returned products are usually sold to secondary markets in practice, LIPs are also studied by considering CLSCs and secondary markets [23,24].…”

Section: Literature Reviewmentioning

confidence: 99%

“…To decode an individual to a solution to the optimization problem, we can use a mechanism shown in (24) and (25).…”

Section: Solution Approachmentioning

confidence: 99%

An Improved Differential Evolution Algorithm for a Multicommodity Location‐Inventory Problem with False Failure Returns

Guo

Zhang

et al. 2018

Complexity

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Customer returns are a common phenomenon in many industries, and they have a significant impact on business organizations and their supply chains. False failure returns are returned products that have no functional or cosmetic defects, and they represent a large body of customer returns in practice. In this paper, we develop a mixed-integer nonlinear programming model to study a multicommodity location-inventory problem in a forward-reverse logistics network. This model minimizes the total cost in this network by considering false failure returns, and it also considers many real-world business scenarios in forward and reverse logistics flows. Moreover, we design a new heuristic approach to solve the model efficiently. Finally, numerical experiments are conducted to validate our solution approach and provide meaningful managerial insights.

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Location-inventory decisions for closed-loop supply chain management in the presence of the secondary market

Cited by 14 publications

References 31 publications

Research on Closed-Loop Supply Chain Decision-Making in Different Cooperation Modes with Government’s Reward-Penalty Mechanism

Research on Closed-Loop Supply Chain Decision-Making in Different Cooperation Modes with Government’s Reward-Penalty Mechanism

A Location-Inventory Problem in a Closed-Loop Supply Chain with Secondary Market Consideration

An Improved Differential Evolution Algorithm for a Multicommodity Location‐Inventory Problem with False Failure Returns

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