Shaghayegh Vedadi Moghaddam
Islamic Azad University, Iran
Title: A closed-loop supply chain with retail price, quality level and reference price considering return policy under game theory
Biography
Biography: Shaghayegh Vedadi Moghaddam
Abstract
This paper develops a closed-loop supply chain with a manufacturer, a retailer and a third party where the manufacturer is the Stackelberg leader sells the product at a wholesale price in the market through a single retailer, and the retailer sells the product to the consumers at a retail price. The manufacturer faces three different reverse channels: (1) manufacturer-managed, (2) retailer-managed and (3) third party-managed channels. We formulated the model based on several assumptions. The market demand is assumed to be dependent on retail price, quality level, refund function and the reference price. The quality of the manufactured product is higher than the quality of the returned product. Meanwhile, re-manufactured products are sold at the same price in the market. It is been noted that the reference price affects the purchase decisions of the consumers. The manufacturer is responsible for satisfying the quality of the product at the quality level. The return policy implemented by the retailer. All players of the closed loop supply chain have an interest in cooperating as an integral system. The closed-loop supply chain formulated under three different scenarios mentioned above and then optimal policy is derived. Numerical examples are taken for each scenario to compare the optimal results and determine the best scenario out of the three mentioned, and study the effect of key model-parameters on the optimal decisions.