Price decisions for reverse supply chain considering IERs and UIC

Abstract

In reverse supply chain under our study, IERs and UIC are the inspection-error-rates and the unit inspection cost respectively. This reverse supply chain consists of two members: remanufacturer and collector. The collector is responsible for collecting the used-products from the used-product market and inspecting the collected used-products. In order to reduce the IERs, the collector increases investment, namely, the unit inspecting cost increases. In this paper, considering IERs and UIC, we focus on the price decisions for reverse supply chain by game theory. We present the optimal price decisions, and analyze the impacts of IERs and UIC on the optimal results by numerical example. The research results can help the remanufacturer and the collector make their optimal price decisions for reverse supply chain considering both IERs and UIC.