American Institute of Mathematical Sciences

Advanced
May  2022, 18(3): 1603-1627. doi: 10.3934/jimo.2021035

Effects of take-back legislation on pricing and coordination in a closed-loop supply chain

Benrong Zheng and  Xianpei Hong ,

College of Economics & Management, Huazhong Agricultural University, Wuhan, Hubei 430070, China

* Corresponding author: Xianpei Hong

Received  April 2020 Revised  November 2020 Published  May 2022 Early access  March 2021

Fund Project: The study is supported in part by the Humanities and Social Science project of Ministry of Education of China (Project No. 19YJC630229), Natural Science Foundation of Hubei Province (Project No. 2019CFB120), National Natural Science Foundation of China (Project No. 71672071), and the Fundamental Research Funds for the Central Universities (Project No. 2662020JGPYG14)

This study investigates the effects of take-back legislation and channel structures on pricing, collection, and coordination in a closed-loop supply chain (CLSC). By establishing the centralized, manufacturer-led, and retailer-led CLSC models, we analyze the equilibrium solutions of channel players and the government. We obtain the following results. (1) The manufacturer can accept a higher collection target and exit the market later in the centralized model than in decentralized decision-making models. Moreover, the manufacturer exists the market earlier in the retailer-led model with regulation compared with the manufacturer-led model. (2) The government's optimal collection target is the same under manufacturer-led and retailer-led models when the regulation comes into force. (3) Revenue-sharing and two-part tariff contracts can effectively coordinate manufacturer-led and retailer-led CLSCs under take-back legislation. Finally, we conduct several numerical examples and obtain relevant managerial insights. Our results indicate that the correlation between take-back legislation and channel structure has a significant impact on the pricing and coordination decisions of the CLSC; furthermore, the government should flexibly set the collection target when facing different supply chain and channel power structures in a CLSC.

Keywords: Closed-loop supply chain, remanufacturing, take-back legislation, channel power structure, coordination.
Mathematics Subject Classification: Primary: 90B05, 68W27; Secondary: 68W40.
Citation: Benrong Zheng, Xianpei Hong. Effects of take-back legislation on pricing and coordination in a closed-loop supply chain. Journal of Industrial and Management Optimization, 2022, 18 (3) : 1603-1627. doi: 10.3934/jimo.2021035
References:
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S. Alizamir, F. Iravani and H. Mamani, An analysis of price vs. revenue protection: Government subsidies in the agriculture industry, Management Science, 65 (2018), 1-18.  doi: 10.1287/mnsc.2017.2927.

[2]

A. Arya and B. Mittendorf, Supply chain consequences of subsidies for corporate social responsibility, Production and Operations Management, 24 (2015), 1346-1357.  doi: 10.1111/poms.12326.

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A. Atasu, L. N. Van Wassenhove and M. Sarvary, Efficient take-back legislation, Production and Operations Management, 18 (2009), 243-258.  doi: 10.1111/j.1937-5956.2009.01004.x.

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A. Atasu and L. N. Van Wassenhove, An operations perspective on product take-back legislation for e-waste: Theory, practice, and research needs, Production and Operations Management, 21 (2012), 407-422.  doi: 10.1111/j.1937-5956.2011.01291.x.

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A. Atasu, L. B. Toktay and L. N. Van Wassenhove., How collection cost structure drives a manufacturer's reverse channel choice, Production and Operations Management, 22 (2013), 1089-1102.  doi: 10.1111/j.1937-5956.2012.01426.x.

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Q. G. Bai, M. Y. Chen and L. Xu, Revenue and promotional cost-sharing contract versus two-part tariff contract in coordinating sustainable supply chain systems with deteriorating items, International Journal of Production Economics, 187 (2017), 85-101. 

[7]

I. Biswas, A. Raj and S. K. Srivastava, Supply chain channel coordination with triple bottom line approach, Transportation Research Part E: Logistics and Transportation Review, 115 (2018), 213-226.  doi: 10.1016/j.tre.2018.05.007.

[8]

G. S. Cai, Z. G. Zhang and M. Zhang, Game theoretical perspectives on dual-channel supply chain competition with price discounts and pricing schemes, International Journal of Production Economics, 117 (2009), 80-96.  doi: 10.1016/j.ijpe.2008.08.053.

[9]

C. K. Chen and M. Akmalul Ulya, Analyses of the reward-penalty mechanism in green closed-loop supply chains with product remanufacturing, International Journal of Production Economics, 210 (2019), 211-223.  doi: 10.1016/j.ijpe.2019.01.006.

[10]

X. Chen and X. J. Wang, Free or bundled: Channel selection decisions under different power structures, Omega, 53 (2015), 11-20.  doi: 10.1016/j.omega.2014.11.008.

[11]

X. Chen, X. J. Wang and H. K. Chan, Manufacturer and retailer coordination for environmental and economic competitiveness: A power perspective, Transportation Research Part E: Logistics and Transportation Review, 97 (2017), 268-281.  doi: 10.1016/j.tre.2016.11.007.

[12]

J. Y. Chen, S. Dimitrov and H. Pun, The impact of government subsidy on supply Chains' sustainability innovation, Omega, 86 (2019), 42-58.  doi: 10.1016/j.omega.2018.06.012.

[13]

P. Chintapalli, S. M. Disney and C. S. Tang, Coordinating supply chains via advance-order discounts, minimum order quantities, and delegations, Production and Operations Management, 26 (2017), 2175-2186.  doi: 10.1111/poms.12751.

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T. M. Choi, Y. J. Li and L. Xu., Channel leadership, performance and coordination in closed loop supply chains, International Journal of Production Economics, 146 (2013), 371-380.  doi: 10.1016/j.ijpe.2013.08.002.

[15]

J. Ding, W. Chen and W. Wang, Production and carbon emission reduction decisions for remanufacturing firms under carbon tax and take-back legislation, Computers & Industrial Engineering, 143 (2020), 106419. doi: 10.1016/j.cie.2020.106419.

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G. Esenduran, A. Atasu and L. N. Van Wassenhove, Valuable e-waste: Implications for extended producer responsibility, IISE Transactions, 51 (2019), 382-396. 

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G. Esenduran and E. Kemahlioglu-Ziya, A comparison of product take-back compliance schemes, Production and Operations Management, 24 (2015), 71-88.  doi: 10.1111/poms.12213.

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L. Feng, K. Govindan and C. Li, Strategic planning: Design and coordination for dual-recycling channel reverse supply chain considering consumer behavior, European Journal of Operational Research, 260 (2017), 601-612.  doi: 10.1016/j.ejor.2016.12.050.

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J. H. Gao, H. S. Han, L. T. Hou and H. Y. Wang, Pricing and effort decisions in a closed-loop supply chain under different channel power structures, Journal of Cleaner Production, 112 (2016), 2043-2057.  doi: 10.1016/j.jclepro.2015.01.066.

[21]

L. Y. Gui, A. Atasu, O. Ergun and L. Toktay, Design incentives under collective extended producer responsibility: A network perspective, Management Science, 64 (2018), 5083-5104. 

[22]

L. Y. Gui, A. Atasu, O. Ergun and L. B. Toktay, Efficient implementation of collective extended producer responsibility legislation, Management Science, 62 (2015), 1098-1123.  doi: 10.1287/mnsc.2015.2163.

[23]

P. Hasanov, M. Y. Jaber and N. Tahirov, Four-level closed loop supply chain with remanufacturing, Applied Mathematical Modelling, 66 (2019), 141-155.  doi: 10.1016/j.apm.2018.08.036.

[24]

P. He, Y. He and H. Xu, Channel structure and pricing in a dual-channel closed-loop supply chain with government subsidy, International Journal of Production Economics, 213 (2019), 108-123.  doi: 10.1016/j.ijpe.2019.03.013.

[25]

Q. He, N. Wang, Z. Yang, Z. He, Zh eng and B. Jiang, Competitive collection under channel inconvenience in closed-loop supply chain, European Journal of Operational Research, 275 (2019), 155-166.  doi: 10.1016/j.ejor.2018.11.034.

[26]

Y. He, Acquisition pricing and remanufacturing decisions in a closed-loop supply chain, International Journal of Production Economics, 163 (2015), 48-60.  doi: 10.1016/j.ijpe.2015.02.002.

[27]

Y. He and X. Zhao, Contracts and coordination: Supply chains with uncertain demand and supply, Naval Research Logistics, 63 (2016), 305-319.  doi: 10.1002/nav.21695.

[28]

X. Hong, L. Wang, Y. Gong and W. Chen, What is the role of value-added service in a remanufacturing closed-loop supply chain?, International Journal of Production Research, 59 (2020), 3342-3361.  doi: 10.1080/00207543.2019.1702230.

[29]

Z. Hong, H. Wang and Y. Gong, Green product design considering functional-product reference, International Journal of Production Economics, 210 (2019), 155-168.  doi: 10.1016/j.ijpe.2019.01.008.

[30]

L. Hsiao, Y. J. Chen and H. Xiong, Supply chain coordination with product line design and a revenue sharing scheme, Naval Research Logistics, 66 (2019), 213-229.  doi: 10.1002/nav.21836.

[31]

X. Huang, A. Atasu and L. B. Toktay, Design implications of extended producer responsibility for durable products, Management Science, 65 (2019), 2573-2590. 

[32]

B. W. Jacobs and R. Subramanian, Sharing responsibility for product recovery across the supply chain, Production and Operations Management, 21 (2012), 85-100.  doi: 10.1111/j.1937-5956.2011.01246.x.

[33]

Z. J. Ma, Y. S. Ye, Y. Dai and H. Yan, The price of anarchy in closed–loop supply chains, International Transactions in Operational Research, 2019. doi: 10.1111/itor.12743.

[34]

T. Maiti and B. C. Giri, A closed loop supply chain under retail price and product quality dependent demand, Journal of Manufacturing Systems, 37 (2015), 624-637.  doi: 10.1016/j.jmsy.2014.09.009.

[35]

S. Mitra and S. Webster, Competition in remanufacturing and the effects of government subsidies, International Journal of Production Economics, 111 (2008), 287-298.  doi: 10.1016/j.ijpe.2007.02.042.

[36]

G. Raz and G. C. Souza, Recycling as a strategic supply source, Production and Operations Management, 27 (2018), 902-916.  doi: 10.1111/poms.12851.

[37]

S. Sarkar, S. Tiwari, H. M. Wee and B. C. Giri, Channel coordination with price discount mechanism under price–sensitive market demand, International Transactions in Operational Research, 27 (2020), 2509-2533.  doi: 10.1111/itor.12678.

[38]

R. C. Savaskan, S. Bhattacharya and L. N. Van Wassenhove, Closed-loop supply chain models with product remanufacturing, Management Science, 50 (2004), 133-279.  doi: 10.1287/mnsc.1030.0186.

[39]

R. C. Savaskan and L. N. Van Wassenhove, Reverse channel design: The case of competing retailers, Management Science, 52 (2006), 1-14.  doi: 10.1287/mnsc.1050.0454.

[40]

M. A. Sieke, R. W. Seifert and U. W. Thonemann, Designing service level contracts for supply chain coordination, Production and Operations Management, 21 (2012), 698-714.  doi: 10.1111/j.1937-5956.2011.01301.x.

[41]

R. Sousa, E. Agante, J. Cerejeira and M. Portela, EEE fees and the WEEE system-A model of efficiency and income in European countries, Waste Management, 79 (2018), 770-780.  doi: 10.1016/j.wasman.2018.08.008.

[42]

R. Subramanian, S. Gupta and F. B. Talbot, Product design and supply chain coordination under extended producer responsibility, Production and Operations Management, 18 (2009), 259-277. 

[43]

F. Toyasaki, T. Boyaci and V. Verter, An analysis of monopolistic and competitive take-back schemes for WEEE recycling, Production and Operations Management, 20 (2011), 805-823.  doi: 10.1111/j.1937-5956.2010.01207.x.

[44]

W. B. Wang, S. Q. Yang, L. Xu and X. L. Yang, Carrot/stick mechanisms for collection responsibility sharing in multi-tier closed-loop supply chain management, Transportation Research Part E: Logistics and Transportation Review, 125 (2019), 366-387.  doi: 10.1016/j.tre.2019.03.002.

[45]

N. Wang, Y. Song, Q. He and T. Jia, Competitive dual-collecting regarding consumer behavior and coordination in closed-loop supply chain, Computers & Industrial Engineering, 144 (2020), 106481. doi: 10.1016/j.cie.2020.106481.

[46]

J. Wei and J. Zhao, Reverse channel decisions for a fuzzy closed-loop supply chain, Applied Mathematical Modelling, 37 (2013), 1502-1513.  doi: 10.1016/j.apm.2012.04.003.

[47]

C. H. Wu, Price and service competition between new and remanufactured products in a two-echelon supply chain, International Journal of Production Economics, 140 (2012), 496-507.  doi: 10.1016/j.ijpe.2012.06.034.

[48]

W. Xiao, C. Gaimon, R. Subramanian and M. Biehl, Investment in environmental process improvement, Production and Operations Management, 28 (2019), 407-420.  doi: 10.1111/poms.12927.

[49]

G. Xie, Modeling decision processes of a green supply chain with regulation on energy saving level, Computers & Operations Research, 54 (2015), 266-273.  doi: 10.1016/j.cor.2013.11.020.

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L. Yang, G. S. Cai and J. Chen, Push, pull, and supply chain risk averse attitude, Production and Operations Management, 27 (2018), 1534-1552. 

[51]

A. Yenipazarli, Managing new and remanufactured products to mitigate environmental damage under emissions regulation, European Journal of Operational Research, 249 (2016), 117-130.  doi: 10.1016/j.ejor.2015.08.020.

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C. T. Zhang and M. L. Ren, Closed-loop supply chain coordination strategy for the remanufacture of patented products under competitive demand, Applied Mathematical Modelling, 40 (2016), 6243-6255.  doi: 10.1016/j.apm.2016.02.006.

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[54]

B. Zheng, N. Yu, L. Jin and H. Xia, Effects of power structure on manufacturer encroachment in a closed-loop supply chain, Computers & Industrial Engineering, 137 (2019), 106062. doi: 10.1016/j.cie.2019.106062.

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J. Zhu, C. Fan, H. Shi and L. Shi, Efforts for a circular economy in China: A comprehensive review of policies, Journal of Industrial Ecology, 23 (2019), 110-118.  doi: 10.1111/jiec.12754.

show all references

References:
[1]

S. Alizamir, F. Iravani and H. Mamani, An analysis of price vs. revenue protection: Government subsidies in the agriculture industry, Management Science, 65 (2018), 1-18.  doi: 10.1287/mnsc.2017.2927.

[2]

A. Arya and B. Mittendorf, Supply chain consequences of subsidies for corporate social responsibility, Production and Operations Management, 24 (2015), 1346-1357.  doi: 10.1111/poms.12326.

[3]

A. Atasu, L. N. Van Wassenhove and M. Sarvary, Efficient take-back legislation, Production and Operations Management, 18 (2009), 243-258.  doi: 10.1111/j.1937-5956.2009.01004.x.

[4]

A. Atasu and L. N. Van Wassenhove, An operations perspective on product take-back legislation for e-waste: Theory, practice, and research needs, Production and Operations Management, 21 (2012), 407-422.  doi: 10.1111/j.1937-5956.2011.01291.x.

[5]

A. Atasu, L. B. Toktay and L. N. Van Wassenhove., How collection cost structure drives a manufacturer's reverse channel choice, Production and Operations Management, 22 (2013), 1089-1102.  doi: 10.1111/j.1937-5956.2012.01426.x.

[6]

Q. G. Bai, M. Y. Chen and L. Xu, Revenue and promotional cost-sharing contract versus two-part tariff contract in coordinating sustainable supply chain systems with deteriorating items, International Journal of Production Economics, 187 (2017), 85-101. 

[7]

I. Biswas, A. Raj and S. K. Srivastava, Supply chain channel coordination with triple bottom line approach, Transportation Research Part E: Logistics and Transportation Review, 115 (2018), 213-226.  doi: 10.1016/j.tre.2018.05.007.

[8]

G. S. Cai, Z. G. Zhang and M. Zhang, Game theoretical perspectives on dual-channel supply chain competition with price discounts and pricing schemes, International Journal of Production Economics, 117 (2009), 80-96.  doi: 10.1016/j.ijpe.2008.08.053.

[9]

C. K. Chen and M. Akmalul Ulya, Analyses of the reward-penalty mechanism in green closed-loop supply chains with product remanufacturing, International Journal of Production Economics, 210 (2019), 211-223.  doi: 10.1016/j.ijpe.2019.01.006.

[10]

X. Chen and X. J. Wang, Free or bundled: Channel selection decisions under different power structures, Omega, 53 (2015), 11-20.  doi: 10.1016/j.omega.2014.11.008.

[11]

X. Chen, X. J. Wang and H. K. Chan, Manufacturer and retailer coordination for environmental and economic competitiveness: A power perspective, Transportation Research Part E: Logistics and Transportation Review, 97 (2017), 268-281.  doi: 10.1016/j.tre.2016.11.007.

[12]

J. Y. Chen, S. Dimitrov and H. Pun, The impact of government subsidy on supply Chains' sustainability innovation, Omega, 86 (2019), 42-58.  doi: 10.1016/j.omega.2018.06.012.

[13]

P. Chintapalli, S. M. Disney and C. S. Tang, Coordinating supply chains via advance-order discounts, minimum order quantities, and delegations, Production and Operations Management, 26 (2017), 2175-2186.  doi: 10.1111/poms.12751.

[14]

T. M. Choi, Y. J. Li and L. Xu., Channel leadership, performance and coordination in closed loop supply chains, International Journal of Production Economics, 146 (2013), 371-380.  doi: 10.1016/j.ijpe.2013.08.002.

[15]

J. Ding, W. Chen and W. Wang, Production and carbon emission reduction decisions for remanufacturing firms under carbon tax and take-back legislation, Computers & Industrial Engineering, 143 (2020), 106419. doi: 10.1016/j.cie.2020.106419.

[16]

G. Esenduran, A. Atasu and L. N. Van Wassenhove, Valuable e-waste: Implications for extended producer responsibility, IISE Transactions, 51 (2019), 382-396. 

[17]

G. Esenduran, E. Kemahlioglu-Ziya and J. M. Swaminathan, Impact of take-back regulation on the remanufacturing industry, Production and Operations Management, 26 (2017), 924-944.  doi: 10.1111/poms.12673.

[18]

G. Esenduran and E. Kemahlioglu-Ziya, A comparison of product take-back compliance schemes, Production and Operations Management, 24 (2015), 71-88.  doi: 10.1111/poms.12213.

[19]

L. Feng, K. Govindan and C. Li, Strategic planning: Design and coordination for dual-recycling channel reverse supply chain considering consumer behavior, European Journal of Operational Research, 260 (2017), 601-612.  doi: 10.1016/j.ejor.2016.12.050.

[20]

J. H. Gao, H. S. Han, L. T. Hou and H. Y. Wang, Pricing and effort decisions in a closed-loop supply chain under different channel power structures, Journal of Cleaner Production, 112 (2016), 2043-2057.  doi: 10.1016/j.jclepro.2015.01.066.

[21]

L. Y. Gui, A. Atasu, O. Ergun and L. Toktay, Design incentives under collective extended producer responsibility: A network perspective, Management Science, 64 (2018), 5083-5104. 

[22]

L. Y. Gui, A. Atasu, O. Ergun and L. B. Toktay, Efficient implementation of collective extended producer responsibility legislation, Management Science, 62 (2015), 1098-1123.  doi: 10.1287/mnsc.2015.2163.

[23]

P. Hasanov, M. Y. Jaber and N. Tahirov, Four-level closed loop supply chain with remanufacturing, Applied Mathematical Modelling, 66 (2019), 141-155.  doi: 10.1016/j.apm.2018.08.036.

[24]

P. He, Y. He and H. Xu, Channel structure and pricing in a dual-channel closed-loop supply chain with government subsidy, International Journal of Production Economics, 213 (2019), 108-123.  doi: 10.1016/j.ijpe.2019.03.013.

[25]

Q. He, N. Wang, Z. Yang, Z. He, Zh eng and B. Jiang, Competitive collection under channel inconvenience in closed-loop supply chain, European Journal of Operational Research, 275 (2019), 155-166.  doi: 10.1016/j.ejor.2018.11.034.

[26]

Y. He, Acquisition pricing and remanufacturing decisions in a closed-loop supply chain, International Journal of Production Economics, 163 (2015), 48-60.  doi: 10.1016/j.ijpe.2015.02.002.

[27]

Y. He and X. Zhao, Contracts and coordination: Supply chains with uncertain demand and supply, Naval Research Logistics, 63 (2016), 305-319.  doi: 10.1002/nav.21695.

[28]

X. Hong, L. Wang, Y. Gong and W. Chen, What is the role of value-added service in a remanufacturing closed-loop supply chain?, International Journal of Production Research, 59 (2020), 3342-3361.  doi: 10.1080/00207543.2019.1702230.

[29]

Z. Hong, H. Wang and Y. Gong, Green product design considering functional-product reference, International Journal of Production Economics, 210 (2019), 155-168.  doi: 10.1016/j.ijpe.2019.01.008.

[30]

L. Hsiao, Y. J. Chen and H. Xiong, Supply chain coordination with product line design and a revenue sharing scheme, Naval Research Logistics, 66 (2019), 213-229.  doi: 10.1002/nav.21836.

[31]

X. Huang, A. Atasu and L. B. Toktay, Design implications of extended producer responsibility for durable products, Management Science, 65 (2019), 2573-2590. 

[32]

B. W. Jacobs and R. Subramanian, Sharing responsibility for product recovery across the supply chain, Production and Operations Management, 21 (2012), 85-100.  doi: 10.1111/j.1937-5956.2011.01246.x.

[33]

Z. J. Ma, Y. S. Ye, Y. Dai and H. Yan, The price of anarchy in closed–loop supply chains, International Transactions in Operational Research, 2019. doi: 10.1111/itor.12743.

[34]

T. Maiti and B. C. Giri, A closed loop supply chain under retail price and product quality dependent demand, Journal of Manufacturing Systems, 37 (2015), 624-637.  doi: 10.1016/j.jmsy.2014.09.009.

[35]

S. Mitra and S. Webster, Competition in remanufacturing and the effects of government subsidies, International Journal of Production Economics, 111 (2008), 287-298.  doi: 10.1016/j.ijpe.2007.02.042.

[36]

G. Raz and G. C. Souza, Recycling as a strategic supply source, Production and Operations Management, 27 (2018), 902-916.  doi: 10.1111/poms.12851.

[37]

S. Sarkar, S. Tiwari, H. M. Wee and B. C. Giri, Channel coordination with price discount mechanism under price–sensitive market demand, International Transactions in Operational Research, 27 (2020), 2509-2533.  doi: 10.1111/itor.12678.

[38]

R. C. Savaskan, S. Bhattacharya and L. N. Van Wassenhove, Closed-loop supply chain models with product remanufacturing, Management Science, 50 (2004), 133-279.  doi: 10.1287/mnsc.1030.0186.

[39]

R. C. Savaskan and L. N. Van Wassenhove, Reverse channel design: The case of competing retailers, Management Science, 52 (2006), 1-14.  doi: 10.1287/mnsc.1050.0454.

[40]

M. A. Sieke, R. W. Seifert and U. W. Thonemann, Designing service level contracts for supply chain coordination, Production and Operations Management, 21 (2012), 698-714.  doi: 10.1111/j.1937-5956.2011.01301.x.

[41]

R. Sousa, E. Agante, J. Cerejeira and M. Portela, EEE fees and the WEEE system-A model of efficiency and income in European countries, Waste Management, 79 (2018), 770-780.  doi: 10.1016/j.wasman.2018.08.008.

[42]

R. Subramanian, S. Gupta and F. B. Talbot, Product design and supply chain coordination under extended producer responsibility, Production and Operations Management, 18 (2009), 259-277. 

[43]

F. Toyasaki, T. Boyaci and V. Verter, An analysis of monopolistic and competitive take-back schemes for WEEE recycling, Production and Operations Management, 20 (2011), 805-823.  doi: 10.1111/j.1937-5956.2010.01207.x.

[44]

W. B. Wang, S. Q. Yang, L. Xu and X. L. Yang, Carrot/stick mechanisms for collection responsibility sharing in multi-tier closed-loop supply chain management, Transportation Research Part E: Logistics and Transportation Review, 125 (2019), 366-387.  doi: 10.1016/j.tre.2019.03.002.

[45]

N. Wang, Y. Song, Q. He and T. Jia, Competitive dual-collecting regarding consumer behavior and coordination in closed-loop supply chain, Computers & Industrial Engineering, 144 (2020), 106481. doi: 10.1016/j.cie.2020.106481.

[46]

J. Wei and J. Zhao, Reverse channel decisions for a fuzzy closed-loop supply chain, Applied Mathematical Modelling, 37 (2013), 1502-1513.  doi: 10.1016/j.apm.2012.04.003.

[47]

C. H. Wu, Price and service competition between new and remanufactured products in a two-echelon supply chain, International Journal of Production Economics, 140 (2012), 496-507.  doi: 10.1016/j.ijpe.2012.06.034.

[48]

W. Xiao, C. Gaimon, R. Subramanian and M. Biehl, Investment in environmental process improvement, Production and Operations Management, 28 (2019), 407-420.  doi: 10.1111/poms.12927.

[49]

G. Xie, Modeling decision processes of a green supply chain with regulation on energy saving level, Computers & Operations Research, 54 (2015), 266-273.  doi: 10.1016/j.cor.2013.11.020.

[50]

L. Yang, G. S. Cai and J. Chen, Push, pull, and supply chain risk averse attitude, Production and Operations Management, 27 (2018), 1534-1552. 

[51]

A. Yenipazarli, Managing new and remanufactured products to mitigate environmental damage under emissions regulation, European Journal of Operational Research, 249 (2016), 117-130.  doi: 10.1016/j.ejor.2015.08.020.

[52]

C. T. Zhang and M. L. Ren, Closed-loop supply chain coordination strategy for the remanufacture of patented products under competitive demand, Applied Mathematical Modelling, 40 (2016), 6243-6255.  doi: 10.1016/j.apm.2016.02.006.

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Figure 1.  Effects of $ \tau_g $ on equilibrium prices $ w^{*} $ and $ p^{*} $
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Figure 2.  Effect of $ \tau_g $ on equilibrium profits
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Figure 3.  Effects of $ \kappa $ and $ \chi $ on equilibrium collection target $ \tau_g^{*} $
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Figure 4.  Effects of $ \Delta $ on contract parameters $ \phi^{*} $ and $ F^{*} $
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Table 1.  Comparison of our study and related literature
Research paper Take-back legislation CLSC power structure Supply chain coordination Endogenous government's decision
Choi et al. [14] $ \surd $ $ \surd $
Chen et al. [11] $ \surd $ $ \surd $
He et al. [25] $ \surd $
Zheng et al. [54] $ \surd $
Bai et al. [6] $ \surd $
Zheng et al. [53] $ \surd $ $ \surd $
Wang et al. [45] $ \surd $
Toyasaki et al. [43] $ \surd $ $ \surd $
Esenduran and Kemahlioglu-Ziya [18] $ \surd $ $ \surd $
Subramanian et al. [42] $ \surd $ $ \surd $ $ \surd $
Jacobs and Subramanian [32] $ \surd $ $ \surd $
Chen and Akmalul Ulya [9] $ \surd $
Alizamir et al. [1] $ \surd $ $ \surd $
Our work $ \surd $ $ \surd $ $ \surd $ $ \surd $
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Research paper Take-back legislation CLSC power structure Supply chain coordination Endogenous government's decision
Choi et al. [14] $ \surd $ $ \surd $
Chen et al. [11] $ \surd $ $ \surd $
He et al. [25] $ \surd $
Zheng et al. [54] $ \surd $
Bai et al. [6] $ \surd $
Zheng et al. [53] $ \surd $ $ \surd $
Wang et al. [45] $ \surd $
Toyasaki et al. [43] $ \surd $ $ \surd $
Esenduran and Kemahlioglu-Ziya [18] $ \surd $ $ \surd $
Subramanian et al. [42] $ \surd $ $ \surd $ $ \surd $
Jacobs and Subramanian [32] $ \surd $ $ \surd $
Chen and Akmalul Ulya [9] $ \surd $
Alizamir et al. [1] $ \surd $ $ \surd $
Our work $ \surd $ $ \surd $ $ \surd $ $ \surd $
Table 2.  Basic parameter set
Parameter $ a $ $ b $ $ c_m $ $ \Delta $ $ f $ $ C_L $
Initial value $ 200 $ $ 10 $ $ 10 $ $ 8 $ $ 10 $ $ 900 $
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Parameter $ a $ $ b $ $ c_m $ $ \Delta $ $ f $ $ C_L $
Initial value $ 200 $ $ 10 $ $ 10 $ $ 8 $ $ 10 $ $ 900 $
Table 3.  Comparison of equilibrium decisions in CLSC under RS contract
recycling is not constrained recycling is constrained
Model $ DM $ $ DR $ $ CM $ $ CR $ $ I $ Model $ DM $ $ DR $ $ CM $ $ CR $ $ I $
$ w^{*} $ $ 14.51 $ $ 11.96 $ $ 3.14 $ $ 25.68 $ $ - $ $ w^{*} $ $ 13.80 $ $ 10.70 $ $ 3.04 $ $ 25.20 $ $ - $
$ p^{*} $ $ 17.26 $ $ 16.96 $ $ 13.92 $ $ 13.92 $ $ 13.92 $ $ p^{*} $ $ 16.90 $ $ 16.90 $ $ 13.80 $ $ 13.80 $ $ 13.80 $
$ \tau^{*} $ $ 0.12 $ $ 0.14 $ $ 0.27 $ $ 0.27 $ $ 0.27 $ $ \tau^{*} $ $ 0.30 $ $ 0.30 $ $ 0.30 $ $ 0.30 $ $ 0.30 $
$ \pi_M^{*} $ $ 127.20 $ $ 66.01 $ $ 146.14 $ $ 72.18 $ $ - $ $ \pi_M^{*} $ $ 101.20 $ $ 5.10 $ $ 139.64 $ $ 62.76 $ $ - $
$ \pi_R^{*} $ $ 75.29 $ $ 152.00 $ $ 147.92 $ $ 221.88 $ $ - $ $ \pi_R^{*} $ $ 96.10 $ $ 192.20 $ $ 153.76 $ $ 230.64 $ $ - $
$ \pi_{T}^{*} $ $ 202.49 $ $ 218.01 $ $ 294.10 $ $ 294.10 $ $ 294.10 $ $ \pi_{T}^{*} $ $ 197.30 $ $ 197.30 $ $ 293.40 $ $ 293.40 $ $ 293.40 $
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recycling is not constrained recycling is constrained
Model $ DM $ $ DR $ $ CM $ $ CR $ $ I $ Model $ DM $ $ DR $ $ CM $ $ CR $ $ I $
$ w^{*} $ $ 14.51 $ $ 11.96 $ $ 3.14 $ $ 25.68 $ $ - $ $ w^{*} $ $ 13.80 $ $ 10.70 $ $ 3.04 $ $ 25.20 $ $ - $
$ p^{*} $ $ 17.26 $ $ 16.96 $ $ 13.92 $ $ 13.92 $ $ 13.92 $ $ p^{*} $ $ 16.90 $ $ 16.90 $ $ 13.80 $ $ 13.80 $ $ 13.80 $
$ \tau^{*} $ $ 0.12 $ $ 0.14 $ $ 0.27 $ $ 0.27 $ $ 0.27 $ $ \tau^{*} $ $ 0.30 $ $ 0.30 $ $ 0.30 $ $ 0.30 $ $ 0.30 $
$ \pi_M^{*} $ $ 127.20 $ $ 66.01 $ $ 146.14 $ $ 72.18 $ $ - $ $ \pi_M^{*} $ $ 101.20 $ $ 5.10 $ $ 139.64 $ $ 62.76 $ $ - $
$ \pi_R^{*} $ $ 75.29 $ $ 152.00 $ $ 147.92 $ $ 221.88 $ $ - $ $ \pi_R^{*} $ $ 96.10 $ $ 192.20 $ $ 153.76 $ $ 230.64 $ $ - $
$ \pi_{T}^{*} $ $ 202.49 $ $ 218.01 $ $ 294.10 $ $ 294.10 $ $ 294.10 $ $ \pi_{T}^{*} $ $ 197.30 $ $ 197.30 $ $ 293.40 $ $ 293.40 $ $ 293.40 $
Table 4.  Comparison of equilibrium decisions under TPT contract
recycling is not constrained recycling is constrained
Model $ DM $ $ DR $ $ CM $ $ CR $ $ I $ Model $ DM $ $ DR $ $ CM $ $ CR $ $ I $
$ w^{*} $ $ 14.51 $ $ 11.96 $ $ 7.84 $ $ 13.92 $ $ - $ $ w^{*} $ $ 13.80 $ $ 10.70 $ $ 7.60 $ $ 13.80 $ $ - $
$ p^{*} $ $ 17.26 $ $ 16.96 $ $ 13.92 $ $ 13.92 $ $ 13.92 $ $ p^{*} $ $ 16.90 $ $ 16.90 $ $ 13.80 $ $ 13.80 $ $ 13.80 $
$ \tau^{*} $ $ 0.12 $ $ 0.14 $ $ 0.27 $ $ 0.27 $ $ 0.27 $ $ \tau^{*} $ $ 0.30 $ $ 0.30 $ $ 0.30 $ $ 0.30 $ $ 0.30 $
$ \pi_M^{*} $ $ 127.20 $ $ 66.01 $ $ 139.30 $ $ 79.05 $ $ - $ $ \pi_M^{*} $ $ 101.20 $ $ 5.10 $ $ 124.00 $ $ 78.40 $ $ - $
$ \pi_R^{*} $ $ 75.29 $ $ 152.00 $ $ 154.80 $ $ 215.05 $ $ - $ $ \pi_R^{*} $ $ 96.10 $ $ 192.20 $ $ 169.40 $ $ 215.00 $ $ - $
$ \pi_{T}^{*} $ $ 202.49 $ $ 218.01 $ $ 294.10 $ $ 294.10 $ $ 294.10 $ $ \pi_{T}^{*} $ $ 197.30 $ $ 197.30 $ $ 293.40 $ $ 293.40 $ $ 293.40 $
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Download as excel

recycling is not constrained recycling is constrained
Model $ DM $ $ DR $ $ CM $ $ CR $ $ I $ Model $ DM $ $ DR $ $ CM $ $ CR $ $ I $
$ w^{*} $ $ 14.51 $ $ 11.96 $ $ 7.84 $ $ 13.92 $ $ - $ $ w^{*} $ $ 13.80 $ $ 10.70 $ $ 7.60 $ $ 13.80 $ $ - $
$ p^{*} $ $ 17.26 $ $ 16.96 $ $ 13.92 $ $ 13.92 $ $ 13.92 $ $ p^{*} $ $ 16.90 $ $ 16.90 $ $ 13.80 $ $ 13.80 $ $ 13.80 $
$ \tau^{*} $ $ 0.12 $ $ 0.14 $ $ 0.27 $ $ 0.27 $ $ 0.27 $ $ \tau^{*} $ $ 0.30 $ $ 0.30 $ $ 0.30 $ $ 0.30 $ $ 0.30 $
$ \pi_M^{*} $ $ 127.20 $ $ 66.01 $ $ 139.30 $ $ 79.05 $ $ - $ $ \pi_M^{*} $ $ 101.20 $ $ 5.10 $ $ 124.00 $ $ 78.40 $ $ - $
$ \pi_R^{*} $ $ 75.29 $ $ 152.00 $ $ 154.80 $ $ 215.05 $ $ - $ $ \pi_R^{*} $ $ 96.10 $ $ 192.20 $ $ 169.40 $ $ 215.00 $ $ - $
$ \pi_{T}^{*} $ $ 202.49 $ $ 218.01 $ $ 294.10 $ $ 294.10 $ $ 294.10 $ $ \pi_{T}^{*} $ $ 197.30 $ $ 197.30 $ $ 293.40 $ $ 293.40 $ $ 293.40 $
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