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Chinese Journal of Management Science ›› 2013, Vol. ›› Issue (2): 76-83.

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Coordination Performance of Closed-loop Supply Chain with Advertising Effect

YI Yu-yin   

  1. School of Management, Jinan University, Guang Zhou 510632, China
  • Received:2010-08-09 Revised:2013-01-08 Online:2013-04-30 Published:2013-04-25

Abstract: By using game theory, a closed-loop supply chain(CLSC) model with advertising effect is constructed to study the impact of advertising effect on decision-making efficiency and coordination performance of CLSC. First, Three different decision models, centrally coordinated model, decentralized model and advertisement cooperation model, are analyzed and the optimal advertising investment and return rate of waste product are studied and compared. Secondly, the impact of advertising effect on the decision variable and profit of the CLSC system are analyzed. Finally, the coordination performance of CLSC is studied from two aspects that are the channel operations efficiency and the division of the decentralized channel profits by using numerical method. The results show that. (1) Compare to the decentralized model, the return rate, advertising investment and the profits of node enterprise are higher in the advertisement cooperation model, that is, the advertising cooperation can coordinate the CLSC. (2) There is a positive correlation between decision variable, profit of the node enterprise and advertising effect. (3) The advertising cooperation can improve the channel operational efficiency sharply, and decrease the division of the decentralized channel profits between the manufacturer and the retailer. With the advertising effect increasing, the channel operations efficiency will decrease and the division of the decentralized channel profits between the manufacturer and the retailer will increase.

Key words: advertising, CLSC, coordination

CLC Number: