Optimizing the sustainable decisions in a multi-echelon closed-loop supply chain of the manufacturing/remanufacturing pr
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Optimizing the sustainable decisions in a multi‑echelon closed‑loop supply chain of the manufacturing/ remanufacturing products with a competitive environment Saeid Rezaei1 · Reza Maihami1,2 Received: 8 October 2018 / Accepted: 5 October 2019 © Springer Nature B.V. 2019
Abstract Along with raised public awareness about environmental issues, some supply chains have begun to develop eco-friendly strategies aiming to manufacture and (or) remanufacture green products. This research presents a new preferable gaming structure in a multi-echelon closed-loop supply chain including a manufacturer, a retailer/remanufacturer, and an intermediate collection center (which is a governmental entity). The supply chain is structured to sell the products in a first and a secondary market. The significance of the research ahead is enhanced due to the use of game theory in sustainability in a new competitive supply chain structure. Toward addressing sustainability requirements, emission reductions within manufacturing, remanufacturing, and delivery functions are considered in a two-period game-theoretic-based model. Regarding the customer’s low-carbon preferences in production and delivery, the manufacturer wholesales new products to the retailer, and then, the retailer forwards them to the primary market via a full truckload policy in the first period. Even more striking, considering the environmental commitments in the second period, used products are gathered by the collection center in a reverse flow and sent to the retailer/remanufacturer for remanufacturing processes. In this regard, a Stackelberg, a Nash game, and also a novel bargaining structure are developed in the first and second periods. Then, the resulting decentralized approach is compared with a centralized model, illustrating a better performance of the decentralized scenario. Finally, through numerical analyses, it is observed that there are ascending relations between the triple dimensions of reduction rates (in manufacturing, remanufacturing, and delivering) and the corresponding profits, in which incorporating low-carbon considerations in remanufacturing has a greater efficacy. Keywords Closed-loop supply chain · Governmental collection center · Sustainability preference · Two-period planning · Game theory · Bargaining
* Reza Maihami [email protected] 1
Bu-Ali Sina University, Hamedan, Iran
2
Our Lady of the Lake University, San Antonio, TX, USA
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S. Rezaei, R. Maihami
1 Introduction Over the recent decades, in response to an increasingly fierce pressure rising from customers, regulations, competitions, and media, the production and selling green products have gained more and more attentions. An eco-friendly economy, seeking to decline the energy utilization and the ecosystem contamination, has been acknowledged as one of the most significant procedures for lessening climate change throughout the world (Ali et al. 2013). Spurred by a highly social awareness, many manufacturers have already willingly engaged in green investment
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