Coordination of Closed-Loop Supply Chain with Dominant Retailer

Abstract

A closed-loop supply chain (CLSC)game model with a dominant retailer is studied, and the retail price, the product return rate, the profits of CLSC in the centrally coordinated and decentralized decision models are compared. It's indicated that the decentralized decision always take some efficiency lose, so the centrally coordinate decision get an advantage over the decentralized decision. Therefore, a modified two-part pricing contract is presented to coordinate the closed-loop chain with a dominant retailer.