The Study On A Reverse Channel With Competing Retailers

摘要

This paper compares two different returning strategies in a reverse channel with two competing retailers and one manufacturer: either paying returning reward to retailers or charging deposit for customers, . We formulate and analyze two decentralized closed-loop supply chain models, Model DF, in which the manufacturer collects used products from the retailers and pays a fixed fee for each returned product; and Model DD, in which the manufacturer charges customers for an additional deposit via the retailers. Customers can only get their deposit back by returning the used product. The analysis results suggest that the manufacturer's profit and total profit of the supply chain in DD model are much larger than those in DF Model.