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Models for closed-loop supply chain with trade-ins
مدل هایی برای زنجیره تامین حلقه بسته با تجارت-2017 Three kinds of decision models for closed-loop supply chain (CLSC) with trade-ins are developed in this
paper, including the centralized collection (Model C), the retailer collection (Model R), and the manu
facturer collection (Model M). By analyzing these models, we argue that there are three types of optimal
collection strategies, namely, no collection, partial collection, and full collection. We provide conditions
under which one of these three collection strategies is optimal for different supply chain models. By
comparing the impact of trade-ins on these different supply chain models, we find that only when the
direct net value of a used product derived from the trade-ins for the whole CLSC system including the
consumers is high enough can trade-in strategy be adopted to stimulate consumer demand and improve
the manufacturers and retailers profit. Based on the life-cycle assessment method, we find that when
the marginal effect of the product on environment in the continue-to-use phase is more significant than
in other phases, trade-ins can promote the environmental performance of the CLSC system. Further, by
comparing the optimal solutions for the different models, we find that one collection model may
dominate the others in terms of the economic performance of the involved parties. Specifically, Model M
dominates Model R in terms of the profits of the manufacturer and the profits of the whole supply chain;
Model R dominates Model M in terms of retailers profit; and Model R dominates all other models in
terms of environmental performance.
Keywords: Closed-loop supply chain | Trade-in | Collection policy |Life-cycle assessment |
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