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Chinese Journal of Management Science ›› 2016, Vol. 24 ›› Issue (3): 109-116.doi: 10.16381/j.cnki.issn1003-207x.2016.03.013

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Decision Model of Closed-Loop Supply Chain Considering Customers' Strategic Behavior and Product Quality

CHEN Zhang-yue, WANG Yong, LIU Hua-ming   

  1. School of Economics and Business Administration, Chongqing University, Chongqing 400044, China
  • Received:2014-06-10 Revised:2015-01-29 Online:2016-03-20 Published:2016-03-18

Abstract: Strategic customers have different valuation and willingness to pay not only for new products and re-manufactured goods which they have different quality, but also for products at different times. So companies should consider the strategic behavior of customers during the decision-making. In this paper, a closed-loop supply chain model are established which consist of a original equipment manufacturer, a independent remanufacturer and a group of strategic consumers. Dynamic game theory is used to analyze the impact of customers' strategic behavior and product quality on prices, profits, consumer surplus when the independent remanufacturer engages in recycling and remanufacturing. Then the two situations of re-manufacturing and no re-manufacturing are compared. Studies have shown that: as the level of customers' strategicity increases, the profits of original equipment manufacturer decrease, the profits of independent remanufacturer and consumer surplus increase. As the quality level of remanufactured product increase, the profits of original equipment manufacturer decrease, the profits of independent remanufacturer increase firstly and then decrease, consumer surplus increase.

Key words: strategic consumer, product quality, closed-loop supply chain, consumer surplus

CLC Number: