Research on Pricing and Service Level Strategies of Dual Channel Reverse Supply Chain Considering Consumer Preference in Multi-Regional Situations
Abstract
:1. Introduction
2. Literature Review
2.1. DRSC
2.2. Service Level Decisions
3. Description of Notations
4. Model Analysis
4.1. The Offline Transfer Price Is Unchanged
4.2. Unify All Transfer Prices
4.3. Maximize Its Own Profits
5. Numerical Example
5.1. θ Analysis
5.2. Discussion
6. Conclusions
Author Contributions
Funding
Conflicts of Interest
Appendix A
Appendix B
References
- Feng, L.; Govindan, K.; Li, C. Strategic planning: Design and coordination for dual-recycling channel reverse supply chain considering consumer behavior. Eur. J. Oper. Res. 2017, 260, 601–612. [Google Scholar] [CrossRef]
- Wu, D.; Chen, J.H.; Li, P.; Zhang, R.J. Contract Coordination of Dual Channel Reverse Supply Chain Considering Service Level. J. Clean. Prod. 2020, 260, 121071. [Google Scholar] [CrossRef]
- Aihuishou Big Data: Three Years of Huge Changes in the Recycling Market. Available online: https://www.sohu.com/a/214819513_398736 (accessed on 5 January 2017).
- Wu, D.; Chen, J.H.; Zhang, R.J. Online Reverse Supply Chain: New Layout to Promote Recycling Industry in China, 2015–2019. Iran. J. Public Health 2020, 49, 189–190. [Google Scholar] [CrossRef] [PubMed]
- Giri, B.C.; Chakraborty, A.; Maiti, T. Pricing and return product collection decisions in a closed-loop supply chain with dual-channel in both forward and reverse logistics. J. Manuf. Syst. 2017, 42, 104–123. [Google Scholar] [CrossRef]
- Chen, J.; Wu, D.; Li, P. Research on the Pricing Model of the Dual-Channel Reverse Supply Chain Considering Logistics Costs and Consumers’ Awareness of Sustainability Based on Regional Differences. Sustainability 2018, 10, 2229. [Google Scholar] [CrossRef] [Green Version]
- Zuo, L.; Wang, C.; Sun, Q. Sustaining WEEE collection business in China: The case of online to offline (O2O) development strategies. Waste Manag. 2020, 101, 222–230. [Google Scholar] [CrossRef] [PubMed]
- Bai, H.; Wang, J.; Zeng, A.Z. Exploring Chinese consumers’ attitude and behavior toward smartphone recycling. J. Clean. Prod. 2018, 188, 227–236. [Google Scholar] [CrossRef]
- Wang, Z.; Zhang, B.; Yin, J.; Zhang, X. Willingness and behavior towards e-waste recycling for residents in Beijing city, China. J. Clean. Prod. 2011, 19, 977–984. [Google Scholar] [CrossRef]
- Li, C.; Feng, L.; Luo, S. Strategic introduction of an online recycling channel in the reverse supply chain with a random demand. J. Clean. Prod. 2019, 236, 117683. [Google Scholar] [CrossRef]
- Jian, H.Y.; Xu, M.L.; Zhou, L. Collaborative collection effort strategies based on the “Internet+ recycling” business model. J. Clean. Prod. 2019, 241, 118120. [Google Scholar] [CrossRef]
- Zhang, L.; Zhou, H.; Liu, Y.; Lu, R. Optimal environmental quality and price with consumer environmental awareness and retailer’s fairness concerns in supply chain. J. Clean. Prod. 2019, 213, 1063–1079. [Google Scholar] [CrossRef]
- Dotoli, M.; Fanti, M.P.; Meloni, C.; Zhou, M.C. A multi-level approach for network design of integrated supply chains. Int. J. Prod. Res. 2005, 43, 4267–4287. [Google Scholar] [CrossRef]
- Dotoli, M.; Fanti, M.P.; Meloni, C.; Zhou, M. Design and optimization of integrated e-supply chain for agile and environmentally conscious manufacturing. IEEE Trans. Syst. Man Cybern.-Part A Syst. Hum. 2005, 36, 62–75. [Google Scholar] [CrossRef]
- Wang, W.; Tian, Y.; Zhu, Q.; Zhong, Y. Barriers for household e-waste collection in China: Perspectives from formal collecting enterprises in Liaoning Province. J. Clean. Prod. 2017, 153, 299–308. [Google Scholar] [CrossRef]
- Wang, B.; Ren, C.Y.; Dong, X.Y.; Zhang, B.; Wang, Z.H. Determinants shaping willingness towards on-line recycling behaviour: An empirical study of household e-waste recycling in China. Resour. Conserv. Recycl. 2019, 143, 218–225. [Google Scholar] [CrossRef]
- National Development and Reform Commission of People’s Republic of China. 2015 Circular Economy Promotion Plan. Available online: http://www.gov.cn/xinwen/2015-04/20/content_2849620.htm (accessed on 14 April 2015).
- Tong, X.; Tao, D.Y.; Lifset, R. Varieties of business models for post-consumer recycling in China. J. Clean. Prod. 2018, 170, 665–673. [Google Scholar] [CrossRef]
- Wang, H.D.; Han, H.G.; Liu, T.; Tian, X.; Xu, M.; Wu, W.; Gu, Y.; Liu, Y.; Zuo, T. “Internet +” recyclable resources: A new recycling mode in China. Resour. Conserv. Recycl. 2018, 134, 44–47. [Google Scholar] [CrossRef]
- Qu, Y.; Wang, W.; Liu, Y.; Zhu, Q. Understanding residents’ preferences for e-waste collection in China—A case study of waste mobile phones. J. Clean. Prod. 2019, 228, 52–62. [Google Scholar] [CrossRef]
- Wang, Y.; Bell, D.R.; Padmanabhan, V. Manufacturer-owned retail stores. Mark. Lett. 2009, 20, 107–124. [Google Scholar] [CrossRef] [Green Version]
- Yan, R.; Pei, Z. Retail services and firm profit in a dual-channel market. J. Retail. Consum. Serv. 2009, 16, 306–314. [Google Scholar] [CrossRef]
- Tsay, A.A.; Agrawal, N. Channel Conflict and Coordination in the E-Commerce Age. Prod. Oper. Manag. 2004, 13, 93–110. [Google Scholar] [CrossRef] [Green Version]
- Giri, B.C.; Sarker, B.R. Coordinating a two-echelon supply chain under production disruption when retailers compete with price and service level. Oper. Res. 2016, 16, 71–88. [Google Scholar] [CrossRef]
- Wang, L.S.; Song, H.M.; Wang, Y.Z. Pricing and service decisions of complementary products in a dual-channel supply chain. Comput. Ind. Eng. 2016, 105, 223–233. [Google Scholar] [CrossRef]
- Zhang, F.; Wang, C. Dynamic pricing strategy and coordination in a dual-channel supply chain considering service value. Appl. Math. Model. 2018, 54, 722–742. [Google Scholar] [CrossRef]
- Xie, J.P.; Zhang, W.S.; Liang, L.; Xia, Y.; Yin, J.; Yang, G. The revenue and cost sharing contract of pricing and servicing policies in a dual-channel closed-loop supply chain. J. Clean. Prod. 2018, 191, 361–383. [Google Scholar] [CrossRef]
- Wang, Y.Y.; Li, J. Research on Dominant Models of E-CLSC Based on Network Sale and Recycle Considering Fairness Concern. Chin. J. Manag. Sci. 2018, 26, 139–151. [Google Scholar]
- Cattani, K.; Gilland, W.; Heese, H.S.; Swaminathan, J. Abstract Boiling Frogs: Pricing Strategies for a Manufacturer Adding a Direct Channel that Competes with the Traditional Channel. Prod. Oper. Manag. 2005, 15, 40–56. [Google Scholar] [CrossRef]
- Huang, W.; Swaminathan, J.M. Introduction of a second channel: Implications for pricing and profits. Eur. J. Oper. Res. 2009, 194, 258–279. [Google Scholar] [CrossRef]
Notation | Explanation |
---|---|
dri | Offline recycling amount (i = 1,2) |
dei | Online recycling amount (i = 1,2) |
θi | Consumer preference for online channels (i= 1,2) |
p0 | Unit income of the recycling center by remanufacturing or reselling WEEE |
pi | Offline recycling price of TPR (i = 1,2) |
pe | Online recycling price of the recycling center or TPP |
wi | Offline transfer price of the recycling center (i = 1,2) |
we | Online transfer price of the recycling center |
si | Service level of online recycling channels, provided by the recycling center or TPP (i = 1,2) |
csi | Service cost of online recycling channels (i = 1,2) |
ηi | Service cost coefficient (η > 0, i = 1,2) |
ai | Basic value of the recycling market (i = 1,2) |
mi | Elasticity coefficient (mi > 0, i = 1,2) of recycling amount affected by its own channel recycling price |
ki | Elasticity coefficient (mi > ki > 0, i = 1,2) of recycling amount affected by the recycling price of competitive channels |
hi | Elasticity coefficient (hi > 0, i = 1,2) of recycling amount affected by the service level of its own channels |
ni | Elasticity coefficient (hi > ni > 0, i = 1,2) of recycling amount affected by the service level of competitive channels |
∏m | profit of the recycling center |
∏i | profit of TPR (i = 1,2) |
∏e | profit of TPP |
θ1 | we | p1 | p2 | pe | s1 | s2 | ∏1 | ∏2 | ∏e | ∏m |
---|---|---|---|---|---|---|---|---|---|---|
0.3 | 385.7 | 153.3 | 178.3 | 155.5 | 57.5 | 57.5 | 98,330 | 77,407 | 185,454 | 1,088,690 |
0.4 | 380.4 | 163.9 | 176.4 | 147.3 | 58.3 | 58.3 | 89,128 | 78,885 | 190,042 | 1,089,680 |
0.5 | 375.0 | 174.5 | 174.5 | 139.1 | 59.0 | 59.0 | 80,378 | 80,378 | 194,687 | 1,090,800 |
0.6 | 369.6 | 185.2 | 172.7 | 131.0 | 59.7 | 59.7 | 72,080 | 81,884 | 199,387 | 1,092,040 |
0.7 | 364.3 | 195.8 | 170.8 | 122.8 | 60.4 | 60.4 | 64,234 | 83,405 | 204,144 | 1,093,400 |
θ1 | w | p1 | p2 | pe | s1 | s2 | ∏1 | ∏2 | ∏e | ∏m |
---|---|---|---|---|---|---|---|---|---|---|
0.3 | 375.7 | 152.1 | 177.1 | 150.9 | 56.2 | 56.2 | 99,963 | 78,857 | 176,846 | 1,088,440 |
0.4 | 375.3 | 163.3 | 175.8 | 145.0 | 57.6 | 57.6 | 89,904 | 79,616 | 185,659 | 1,089,620 |
0.5 | 375.0 | 174.5 | 174.5 | 139.2 | 59.0 | 59.0 | 80,378 | 80,378 | 194,687 | 1,090,800 |
0.6 | 374.7 | 185.7 | 173.2 | 133.3 | 60.3 | 60.3 | 71,385 | 81,144 | 203,928 | 1,091,980 |
0.7 | 374.3 | 197.0 | 171.9 | 127.4 | 61.7 | 61.7 | 62,926 | 81,913 | 213,384 | 1,093,160 |
θ1 | w1 | w2 | we | p1 | p2 | pe | s1 | s2 | ∏1 | ∏2 | ∏e | ∏m |
---|---|---|---|---|---|---|---|---|---|---|---|---|
0.3 | 354 | 379 | 383 | 142.3 | 179.8 | 153.1 | 57.5 | 57.5 | 89,812 | 79,529 | 185,454 | 1,089,120 |
0.4 | 365 | 377 | 379 | 158.4 | 177.1 | 146.1 | 58.3 | 58.3 | 85,030 | 79,953 | 190,042 | 1,089,790 |
0.5 | 375 | 375 | 375 | 174.5 | 174.5 | 139.2 | 59.0 | 59.0 | 80,378 | 80,378 | 194,687 | 1,090,800 |
0.6 | 385 | 373 | 371 | 190.7 | 171.9 | 132.2 | 59.7 | 59.7 | 75,857 | 80,804 | 199,387 | 1,092,150 |
0.7 | 396 | 371 | 367 | 206.8 | 169.3 | 125.2 | 60.4 | 60.4 | 71,467 | 81,231 | 204,144 | 1,093,830 |
Publisher’s Note: MDPI stays neutral with regard to jurisdictional claims in published maps and institutional affiliations. |
© 2020 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (http://creativecommons.org/licenses/by/4.0/).
Share and Cite
Kang, Y.; Chen, J.; Wu, D. Research on Pricing and Service Level Strategies of Dual Channel Reverse Supply Chain Considering Consumer Preference in Multi-Regional Situations. Int. J. Environ. Res. Public Health 2020, 17, 9143. https://doi.org/10.3390/ijerph17239143
Kang Y, Chen J, Wu D. Research on Pricing and Service Level Strategies of Dual Channel Reverse Supply Chain Considering Consumer Preference in Multi-Regional Situations. International Journal of Environmental Research and Public Health. 2020; 17(23):9143. https://doi.org/10.3390/ijerph17239143
Chicago/Turabian StyleKang, Yao, Juhong Chen, and Di Wu. 2020. "Research on Pricing and Service Level Strategies of Dual Channel Reverse Supply Chain Considering Consumer Preference in Multi-Regional Situations" International Journal of Environmental Research and Public Health 17, no. 23: 9143. https://doi.org/10.3390/ijerph17239143