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Open AccessArticle

Closed Loop Supply Chain under Power Configurations and Dual Competitions

by Yang Liu and Yang Zhang *
Department of Industrial Engineering, Tsinghua University, Beijing 100084, China
*
Author to whom correspondence should be addressed.
Sustainability 2018, 10(5), 1617; https://doi.org/10.3390/su10051617
Received: 10 April 2018 / Revised: 5 May 2018 / Accepted: 11 May 2018 / Published: 17 May 2018
(This article belongs to the Special Issue Sustainable Supply Chain System Design and Optimization)
This paper investigates pricing and collecting decisions in a closed loop supply chain (CLSC) under different power configurations and dual competitions. If the original equipment manufacturer (OEM) could sell products directly and collect used products, OEM has to compete with both forward retailer and reverse collector, simultaneously, and OEM possesses different bargaining powers. Specifically, we examine the following models: (1) M1: OEM holds the first position in both forward and reverse channels; (2) M2: OEM holds the first (second) position in the forward (reverse) channel; (3) M3: OEM holds the second position in both channels. We conduct a systematic comparison of forward competition, reverse competition and dual competitions across the above models. From the perspective of the entire supply chain, the outcome of model selection hinges on the extent of competition. If the competition is sufficient, two forward leaders will engage in a price battle which results in great losses for both. Then M1 is preferred. Otherwise, M3 outperforms. View Full-Text
Keywords: power configuration; forward competition; reverse competition; closed loop supply chain; extended producer responsibility power configuration; forward competition; reverse competition; closed loop supply chain; extended producer responsibility
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Liu, Y.; Zhang, Y. Closed Loop Supply Chain under Power Configurations and Dual Competitions. Sustainability 2018, 10, 1617.

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