NDLI: On sales pricing and recovery for closed-loop supply chain coordination based on game theory

Content Provider	IEEE Xplore Digital Library
Author	Yuan Jing Sun Junqing
Copyright Year	2011
Description	Author affiliation: Tianjin Key Laboratory of Intelligence Computing and Novel Software Technology, Tianjin University of Technology, 300191, China (Yuan Jing; Sun Junqing)
Abstract	This paper addresses pricing and recovery strategy and coordination mechanism of the closed-loop supply chain composed of a manufacturer and two retailers based on game theory. Firstly the effectiveness of the closed-loop supply chain is studied under the situation that the manufacturer and two retailers cooperate with each other. Then under the circumstance of Stackelberg game, in which the manufacturer is the leader and the two retailers are followers, the effectiveness of the closed-loop supply chain is analyzed respectively when the retailers are or are not in the cooperation with each other. Next through comprehensive comparison it is found that the entire closed-loop supply chain system can get the optimal effectiveness only when manufacturer and retailers are in the state of cooperation. Finally this paper presents an improved decentralized decision-making model and a cooperation mechanism of supply chain. Through the contract of profit sharing and by decentralized decision-making mode, the supply chain can avoid double marginalization effect of profit and gain the optimal revenue, which are attained at the same level as in the centralized decision-making coordinated system, when the manufacturer and retailers can get more profit than they get under the circumstances of Stackelberg game.
Starting Page	5800
Ending Page	5804
File Size	221505
Page Count	5
File Format	PDF
ISBN	9781457706776
ISSN	21612927
e-ISBN	9789881725592
Language	English
Publisher	Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Publisher Date	2011-07-22
Publisher Place	China
Access Restriction	Subscribed
Rights Holder	Chinese Assoc of Automati
Subject Keyword	Strontium Game Theory Closed-Loop Supply Chain Operational Efficiency Supply chains Europe Pricing Games Game theory Profit Sharing
Content Type	Text
Resource Type	Article

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