The closed-loop supply chain network with competition, distribution channel investment, and uncertainties

Qiang Qiang, Ke Ke, Trisha Anderson, June Dong

Research output: Contribution to journalArticlepeer-review

199 Scopus citations

Abstract

In this paper, a closed-loop supply chain network is investigated with decentralized decision-makers consisting of raw material suppliers, retail outlets, and the manufacturers that collect the recycled product directly from the demand market. We derive the optimality conditions of the various decision-makers, and establish that the governing equilibrium conditions can be formulated as a finite-dimensional variational inequality problem. We establish convergence of the proposed algorithm that can allow for the discussion of the effects of competition, distribution channel investment, yield and conversion rates, combined with uncertainties in demand, on equilibrium quantity transactions and prices. Numerical examples are provided for illustration.

Original languageEnglish (US)
Pages (from-to)186-194
Number of pages9
JournalOmega (United Kingdom)
Volume41
Issue number2
DOIs
StatePublished - Apr 2013

All Science Journal Classification (ASJC) codes

  • Strategy and Management
  • Management Science and Operations Research
  • Information Systems and Management

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