Closed-Loop Supply Chain Models under Government Incentives and Fees

摘要

Usage of government incentives and fees to encourage the collection of used products and subsequent remanufacture has increased worldwide. We focus on the impact of these incentives and fees in a closed-loop supply chain with two manufacturers and one collector with heterogeneous products. We analyze the government participation with linear incentives and fees and a centrally coordinated model. We incorporate the revenue neutrality requirement from a government's perspective whose financial sources for such incentives must reconcile with the financial sinks for such fees. By comparing the equilibrium solutions we present managerial insights and economic implications relevant to academics and practitioners.