Remanufacturing for Circular Economy: Understanding the Impact of Manufacturer’s Incentive under Price Competition

Business organizations all around the globe are looking to expand circular models into their supply chains to harness economic and environmental benefits. Moreover, the act of giving incentives to retailers by the manufacturer is also quite prevalent in the present business environment. These incent...

Descripción completa

Guardado en:

Detalles Bibliográficos
Autores principales:	Deepak Singhal, Sarat Kumar Jena, Satyabrata Aich, Sushanta Tripathy, Hee-Cheol Kim
Formato:	article
Lenguaje:	EN
Publicado:	MDPI AG 2021
Materias:	closed-loop supply chain (CLSC) supply chain coordination incentive credit period cash discount remanufacturing Environmental effects of industries and plants TD194-195 Renewable energy sources TJ807-830 Environmental sciences GE1-350
Acceso en línea:	https://doaj.org/article/2eeda60641f6432bb2317f5edcec2712
Etiquetas:	Agregar Etiqueta Sin Etiquetas, Sea el primero en etiquetar este registro!

id	oai:doaj.org-article:2eeda60641f6432bb2317f5edcec2712
record_format	dspace
spelling	oai:doaj.org-article:2eeda60641f6432bb2317f5edcec27122021-11-11T19:32:30ZRemanufacturing for Circular Economy: Understanding the Impact of Manufacturer’s Incentive under Price Competition10.3390/su1321118392071-1050https://doaj.org/article/2eeda60641f6432bb2317f5edcec27122021-10-01T00:00:00Zhttps://www.mdpi.com/2071-1050/13/21/11839https://doaj.org/toc/2071-1050Business organizations all around the globe are looking to expand circular models into their supply chains to harness economic and environmental benefits. Moreover, the act of giving incentives to retailers by the manufacturer is also quite prevalent in the present business environment. These incentives are offered to promote the sales of products of a manufacturer. Therefore, this paper examines the optimal decisions for a dual-retailer closed-loop supply chain (CLSC) in which the manufacturer bestows the credit period to the one retailer (a firm that possesses shallow market penetration and has a higher insistence on the usage of the capital venture), and cash discount to the next retailer (a firm that occupies the market to a greater extent and receives lower thrust on the usage of invested capital) under a non-coordinated system and coordinated systems. This study proposes the mathematical model to determine the optimal decisions of the manufacturer in terms of credit period and cash discount and also compute the optimal decisions of the retailers for their retail prices and order quantities to maximize individual’s profit in the CLSC. Moreover, numerical analysis and sensitivity analysis is performed to get insights into the optimal decisions of the manufacturer and retailers. The results of sensitivity analysis show that credit period and cash discount increases with the rise in price elasticity, and decreases with an increase in cross-price elasticity. The findings also confirm that members of dual-retailer CLSC under coordination and manufacture’s incentive scenario generate higher environmental and economic benefits required to attain sustainability in production and consumption.Deepak SinghalSarat Kumar JenaSatyabrata AichSushanta TripathyHee-Cheol KimMDPI AGarticleclosed-loop supply chain (CLSC)supply chain coordinationincentivecredit periodcash discountremanufacturingEnvironmental effects of industries and plantsTD194-195Renewable energy sourcesTJ807-830Environmental sciencesGE1-350ENSustainability, Vol 13, Iss 11839, p 11839 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	closed-loop supply chain (CLSC) supply chain coordination incentive credit period cash discount remanufacturing Environmental effects of industries and plants TD194-195 Renewable energy sources TJ807-830 Environmental sciences GE1-350
spellingShingle	closed-loop supply chain (CLSC) supply chain coordination incentive credit period cash discount remanufacturing Environmental effects of industries and plants TD194-195 Renewable energy sources TJ807-830 Environmental sciences GE1-350 Deepak Singhal Sarat Kumar Jena Satyabrata Aich Sushanta Tripathy Hee-Cheol Kim Remanufacturing for Circular Economy: Understanding the Impact of Manufacturer’s Incentive under Price Competition
description	Business organizations all around the globe are looking to expand circular models into their supply chains to harness economic and environmental benefits. Moreover, the act of giving incentives to retailers by the manufacturer is also quite prevalent in the present business environment. These incentives are offered to promote the sales of products of a manufacturer. Therefore, this paper examines the optimal decisions for a dual-retailer closed-loop supply chain (CLSC) in which the manufacturer bestows the credit period to the one retailer (a firm that possesses shallow market penetration and has a higher insistence on the usage of the capital venture), and cash discount to the next retailer (a firm that occupies the market to a greater extent and receives lower thrust on the usage of invested capital) under a non-coordinated system and coordinated systems. This study proposes the mathematical model to determine the optimal decisions of the manufacturer in terms of credit period and cash discount and also compute the optimal decisions of the retailers for their retail prices and order quantities to maximize individual’s profit in the CLSC. Moreover, numerical analysis and sensitivity analysis is performed to get insights into the optimal decisions of the manufacturer and retailers. The results of sensitivity analysis show that credit period and cash discount increases with the rise in price elasticity, and decreases with an increase in cross-price elasticity. The findings also confirm that members of dual-retailer CLSC under coordination and manufacture’s incentive scenario generate higher environmental and economic benefits required to attain sustainability in production and consumption.
format	article
author	Deepak Singhal Sarat Kumar Jena Satyabrata Aich Sushanta Tripathy Hee-Cheol Kim
author_facet	Deepak Singhal Sarat Kumar Jena Satyabrata Aich Sushanta Tripathy Hee-Cheol Kim
author_sort	Deepak Singhal
title	Remanufacturing for Circular Economy: Understanding the Impact of Manufacturer’s Incentive under Price Competition
title_short	Remanufacturing for Circular Economy: Understanding the Impact of Manufacturer’s Incentive under Price Competition
title_full	Remanufacturing for Circular Economy: Understanding the Impact of Manufacturer’s Incentive under Price Competition
title_fullStr	Remanufacturing for Circular Economy: Understanding the Impact of Manufacturer’s Incentive under Price Competition
title_full_unstemmed	Remanufacturing for Circular Economy: Understanding the Impact of Manufacturer’s Incentive under Price Competition
title_sort	remanufacturing for circular economy: understanding the impact of manufacturer’s incentive under price competition
publisher	MDPI AG
publishDate	2021
url	https://doaj.org/article/2eeda60641f6432bb2317f5edcec2712
work_keys_str_mv	AT deepaksinghal remanufacturingforcirculareconomyunderstandingtheimpactofmanufacturersincentiveunderpricecompetition AT saratkumarjena remanufacturingforcirculareconomyunderstandingtheimpactofmanufacturersincentiveunderpricecompetition AT satyabrataaich remanufacturingforcirculareconomyunderstandingtheimpactofmanufacturersincentiveunderpricecompetition AT sushantatripathy remanufacturingforcirculareconomyunderstandingtheimpactofmanufacturersincentiveunderpricecompetition AT heecheolkim remanufacturingforcirculareconomyunderstandingtheimpactofmanufacturersincentiveunderpricecompetition
_version_	1718431456685981696

Remanufacturing for Circular Economy: Understanding the Impact of Manufacturer’s Incentive under Price Competition

Ejemplares similares