Impact of prices and collection rivalry in a sustainable closed-loop dual-channel supply chain under different power configurations

Abstract

Market competitiveness and waste pollution are the two biggest problems facing the modern world. The first one may be handled with appropriate production and marketing tactics, while the last one can be reclaimed by recycling any unused products and employing disposable items that are environmentally friendly. This study employs both integrated and decentralised frameworks to evaluate forward and reverse supply chain rivalry in a closed-loop dual-channel supply chain for sustainable products. Competition on buy-back prices is also studied beyond price competition in forward supply chain. Two collectors collect used goods under buyback competition, then screen them, and ship them back to the manufacturer. When they generate their goods using both recycled and new raw materials, manufacturers impose the proper environmental requirements. The manufacturer and retailer, respectively, use online and conventional distribution channels to market the new sustainable products. The primary goal of the article is to investigate pricing, green innovation level, and buy-back price strategies for players' optimal gains under various scenarios. The article reveals that if the acceptance rate surpasses certain thresholds following the screening of the acquired usable items, then all participants benefit. Manufacturer-collector partnerships reduce environmental pollution more effectively than retailer-collector alliances, however, collectors' profits may suffer.

Keywords:

• Closed-loop supply chain
• dual channel
• green innovation
• recycling
• Stackelberg game
• Nash game
• price competition

Acknowledgments

The author would like to express his gratitude to the editors and referees for their valuable suggestions and corrections to enhance the clarity of the present article.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Availability of data and materials

The authors confirm that the data supporting the findings of this study are available within the article.