Next Article in Journal
Sustainable Collaborative Governance in Supply Chain
Next Article in Special Issue
Minimization of the Environmental Emissions of Closed-Loop Supply Chains: A Case Study of Returnable Transport Assets Management
Previous Article in Journal
Logistics Best Practices for Regional Food Systems: A Review
Previous Article in Special Issue
Investment Strategy in a Closed Loop Supply Chain: The Case of a Market with Competition between Two Retailers
Article Menu
Issue 1 (January) cover image

Export Article

Open AccessArticle
Sustainability 2018, 10(1), 157;

Static and Dynamic Pricing Strategies in a Closed-Loop Supply Chain with Reference Quality Effects

College of Management, Anhui Science and Technology University, Anhui 233100, China
School of Economics and Management, Nanjing University of Aeronautics and Astronautics, Nanjing 211106, China
College of Management Engineering, Anhui Polytechnic University, Anhui 241000, China
Odette School of Business, University of Windsor, Windsor, ON N9B 3P4, Canada
College of Transportation and Civil Engineering, Fujian Agriculture and Forestry University, Fuzhou 350002, China
Author to whom correspondence should be addressed.
Received: 3 December 2017 / Revised: 8 January 2018 / Accepted: 8 January 2018 / Published: 12 January 2018
(This article belongs to the Special Issue Reverse Logistics: An Interdisciplinary Approach)
Full-Text   |   PDF [1118 KB, uploaded 12 January 2018]   |  


Remanufacturing of returned products has been increasingly recognized in industries as an effective approach to face environmental responsibility, government regulations, and increased awareness of consumers. In this paper, we address a closed-loop supply chain (CLSC) in which the manufacturer produces the brand-new products, as well as the remanufactured goods while the retailer sells these products to customers. We consider several different scenarios: the manufacturer and the retailer adopt a steady-state price or a dynamic price with reference quality effects in a centralized case; either, neither or both the manufacturer and the retailer price dynamically with reference quality effects, respectively, in a decentralized model. We solve the problem with the retailer recycling the sold copies and deduce the optimal pricing strategies while the manufacturer in charge of recovering the used items in such a CLSC. The result shows that dynamic pricing strategies are much more profitable for the supply chain and its members when compared with pricing statically; the dynamic pricing strategies with time-varying quality characterized by reference quality are more suited to a long-term and cooperative closed-loop supply chain. Moreover, the optimal recycling fraction relies on the recovery cost coefficient and proves to be uniform despite adopting a dynamic price and quality in all distinct cases. View Full-Text
Keywords: closed-loop supply chain; dynamic pricing; differential game; reference quality effects closed-loop supply chain; dynamic pricing; differential game; reference quality effects

Figure 1

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).

Share & Cite This Article

MDPI and ACS Style

Zhang, Z.; Zhang, Q.; Liu, Z.; Zheng, X. Static and Dynamic Pricing Strategies in a Closed-Loop Supply Chain with Reference Quality Effects. Sustainability 2018, 10, 157.

Show more citation formats Show less citations formats

Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Related Articles

Article Metrics

Article Access Statistics



[Return to top]
Sustainability EISSN 2071-1050 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top