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Sustainability 2017, 9(5), 683; doi:10.3390/su9050683

Dynamic Collection Strategy and Coordination of a Remanufacturing Closed-Loop Supply Chain under Uncertainty

1,†
,
2,†
and
3,4,5,†,*
1
School of Economics and Management, Shanghai Maritime University, Shanghai 201306, China
2
School of Economics and Management, Southwest Jiaotong University, Chengdu 610031, China
3
Business and Law School, Foshan University, Foshan 528000, China
4
Zhongshan Institute, University of Electronic Science and Technology of China, Zhongshan 528400, China
5
Economics and Management College, Civil Aviation University of China, Tianjin 300300, China
The authors are ordered alphabetically and share equal contribution.
*
Author to whom correspondence should be addressed.
Academic Editor: Andrea Appolloni
Received: 21 March 2017 / Revised: 18 April 2017 / Accepted: 19 April 2017 / Published: 26 April 2017
(This article belongs to the Special Issue Sustainability and Application of Green Production)
View Full-Text   |   Download PDF [647 KB, uploaded 26 April 2017]   |  

Abstract

This paper aims to investigate the uncertainty factors that impact the collection strategy of a remanufacturing closed-loop supply chain. The basis of this type of supply chain is the collection of used products, without which the remanufacturing of new products would be out of the question. In this paper, we considered the effect of stochastic disturbance on the collection process in a closed-loop supply chain consisting of a manufacturer and a retailer, in which the manufacturer is responsible for collecting the used products. Considering stochastic disturbance, in this research, we proposed a stochastic collection model, and derived the feedback control strategies for both the manufacturer and retailer. Next, we investigated the evolutionary path and probability distribution of the stochastic return rate. Finally, we proposed a contract to coordinate the decentralized closed-loop supply chain. The results showed that the manufacturer would improve the level of return effort as the intensity of stochastic disturbance increases. However, the disturbance would not affect the pricing strategies of the supply chain members. As a result of the stochastic disturbance, the return rate always hovered around the expected return rate, while the expectation and variance of the return rate remained stable from a long-term perspective. The expected value and variance of the return rate could decrease or increase with time, depending on the value of the initial return rate of the system. View Full-Text
Keywords: closed-loop supply chain; coordination contract; feedback control strategy; stochastic differential game; green supply chain closed-loop supply chain; coordination contract; feedback control strategy; stochastic differential game; green supply chain
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Huang, Z.; Nie, J.; Tsai, S.-B. Dynamic Collection Strategy and Coordination of a Remanufacturing Closed-Loop Supply Chain under Uncertainty. Sustainability 2017, 9, 683.

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