Collection channel selection strategy for a supply chain considering incomplete remanufacturing and shared environmental responsibility

Abstract

This article investigates a closed-loop supply chain where the manufacturer and the retailer share corporate environmental responsibility regarding the environmental impact caused by non-collected used products. To model the interactions between the two players, game theoretical models are established. The results show that (1) when the manufacturer's environmental responsibility is high, the follower-managed collection is better than the leader-managed collection. (2) The collection rate rises if the membership with high corporate environmental responsibility leads the channel or manages the collection. (3) Unless the manufacturer or consumers' environmental responsibility is sufficiently high, the retail price is higher in retailer-managed collection than manufacturer-managed collection.