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Sustainability 2015, 7(3), 2373-2396; doi:10.3390/su7032373

Retail Services and Pricing Decisions in a Closed-Loop Supply Chain with Remanufacturing

School of Management, Huazhong University of Science and Technology, Wuhan 430074, China
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Academic Editor: Marc A. Rosen
Received: 30 October 2014 / Accepted: 24 December 2014 / Published: 27 February 2015
(This article belongs to the Special Issue Sustainable Business and Development)
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Abstract

Environmental and social responsibilities have led many manufacturers to used products recovery. Meanwhile, many manufacturers nowadays sell products via indirect retailer channels and direct Internet channels. This paper models a dual-channel closed-loop supply chain to improve the sustainability of products. We apply the two-stage optimization technique and the Nash game to examine the impacts of the retail services and the degree of customer loyalty to the retail channel on the pricing of players in a centralized and a decentralized dual-channel supply chain. Our results show that the retail services have a great impact on the manufacturer and the retailer’s pricing strategies. We also compare the differences of pricing strategies between a centralized and a decentralized dual-channel supply chain and suggest the optimal retail services and pricing decisions for the players in the supply chain. View Full-Text
Keywords: closed-loop supply chain; dual-channel; remanufacturing; retail services; pricing strategy closed-loop supply chain; dual-channel; remanufacturing; retail services; pricing strategy
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

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MDPI and ACS Style

Zhang, Z.-Z.; Wang, Z.-J.; Liu, L.-W. Retail Services and Pricing Decisions in a Closed-Loop Supply Chain with Remanufacturing. Sustainability 2015, 7, 2373-2396.

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