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Articles

Pricing and Coordination Decision of the Dual Channel Closed-loop Supply Chain Considering the Customer Preference

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  • 1. School of Management, Wuhan Textile University, Wuhan 430073, China;
    2. School of Science, Hubei University of Technology, Wuhan 430068, China

Received date: 2013-08-28

  Revised date: 2014-03-30

  Online published: 2015-07-22

Abstract

The pricing strategies and coordination mechanism are studied in the closed-loop supply chain based on channel competition. The equilibrium pricing strategies of the manufacturer-leading Stackelberg game and the Bertrand competition game are obtained. Furthermore, the influences of some key parameters in the model including consumer preference coefficient and remanufacturing cost savings on the optimal pricing decision and the profits of the channel members are analyzed. Then, to balance the centralized decision-making results for reference, a simple price mechanism and profit sharing mechanism are used to achieve the perfect coordination of the combination of the dual channel closed-loop supply chain. Finally, through the theoretical analysis and numerical simulation, the effect of the consumer preference coefficient on the profit of the channel members and the dual-channel closed-loop supply chain system is explored.

Cite this article

CAO Xiao-gang, ZHENG Ben-rong, WEN Hui . Pricing and Coordination Decision of the Dual Channel Closed-loop Supply Chain Considering the Customer Preference[J]. Chinese Journal of Management Science, 2015 , 23(6) : 107 -117 . DOI: 10.16381/j.cnki.issn1003-207x.201.06.014

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