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Closed-Loop Supply Chain Models with Product Remanufacturing

Bibliographic Data

ID23338142
AuthorsR Canan Savaskan (Northwestern University), Shantanu Bhattacharya (0000-0001-5027-6505, Technology Management, INSEAD, Boulevard de Constance, 77305 Fontainebleau, Cedex, France), Luk N Van Wassenhove (0000-0002-5573-1834, Technology Management, INSEAD, Boulevard de Constance, 77305 Fontainebleau, Cedex, France)
Year2004
Volume50
Issue2
Pages239-252
Publication date2004-02-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueManagement Science (JOURNAL)
Journal identifiersISSN: 0025-1909 • E-ISSN: 1526-5501
PublisherInstitute for Operations Research and the Management Sciences (INFORMS) (PUBLISHER)
DOI10.1287/mnsc.1030.0186
OpenAlexW2111107475
LanguageEN
Citations received47
References cited30

The importance of remanufacturing used products into new ones has been widely recognized in the literature and in practice. In this paper, we address the problem of choosing the appropriate reverse channel structure for the collection of used products from customers. Specifically, we consider a manufacturer who has three options for collecting such products: (1) she can collect them herself directly from the customers, (2) she can provide suitable incentives to an existing retailer (who already has a distribution channel) to induce the collection, or (3) she can subcontract the collection activity to a third party. Based on our observations in the industry, we model the three options described above as decentralized decision-making systems with the manufacturer being the Stackelberg leader. When considering decentralized channels, we find that ceteris paribus, the agent, who is closer to the customer (i.e., the retailer), is the most effective undertaker of product collection activity for the manufacturer. In addition, we show that simple coordination mechanisms can be designed such that the collection effort of the retailer and the supply chain profits are attained at the same level as in a centrally coordinated system.

Business · Ceteris paribus · Channel (broadcasting) · Data collection · Economics · Incentive · Industrial organization · Manufacturing engineering · Microeconomics · Operations research · Product (mathematics) · Remanufacturing · Reverse Logistics · Stackelberg competition · Supply chain · Supply chain management · Telecommunications · Auction Theory and Applications · Computer Science · Marketing · Supply Chain and Inventory Management · Sustainable Supply Chain Management

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Unique citing works47
Citations per year2,47
Citation span2007 - 2026 (20)
Citation velocitycurrent
Highly citedNo
Citation typesNeutral: 46

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