Pricing Decisions in Decentralized Reverse Supply Chain based on Game Theory Approach

Pricing Decisions in Decentralized Reverse Supply Chain based on Game Theory Approach

… Download …


Part of #Pricing Decisions in Decentralized Reverse Supply Chain based on Game Theory Approach# :

Publishing year : 2012

Conference : Eighth International Industrial Engineering Conference

Number of pages : 5

Abstract: Recently, the closed loop supply chain and reverse logistics activities are getting more and more attentions and applications. After good experiences in the field of forwarding logistics activities by manufacturers, the third-party reverse logistics (3PRL) has begun to consider it as well. In this area, the beneficial coordination between the 3PRL and the manufacturer is a focal point in the interaction between them. In this paper, we apply the game theory approach for analyzing the optimal price and profit of the manufacturer and the 3PRL. We consider a closed-loop structure containing one manufacturer, customers buyingproductions of the manufacturer and one third-party collecting the used products from the customers. Also, in our study, two-variable demand functions have been considered for new and used products demands. The evaluation of the captured benefit by the members in the case of cooperation shows that the member companies' profits are higher than the traditional non-cooperation case. On the other hand, the sale price and collection price are more economical for customers through the cooperation of the manufacturer and third party