Research On Decisions Of The Dominant Retailer’s Dual-Channel Closed-Loop Supply Chain

With the rapid development of the Internet, the concept of E-marketing begins to be accepted and developed by more and more enterprises. Following the traditional manufacturers, giants of retailers have also started to take dual-channel sales model which combines online sales and offline sales. At the same time, although economic growth and scientific and technological progress has brought great wealth to humans, but also led to the natural resources shortage and environmental pollution. As more and more countries begin to pay more attention to the recycling of waste products, the traditional supply chain management has begun to gradually change to the closed-loop supply chain management mode. Based on such a background, this paper combines retailer dominant supply chain theory, closed-loop supply chain theory and dual-channel supply chain theory and makes a research on the decisions of the dominant retailer’s dual-channel closed-loop supply chain by using the method of model building and case analysis.Firstly, we establish three decision-making models of dominant retailer’s dual-channel closed-loop supply chain under three different recycling modes by using the Stackelberg game theory, and obtain the optimal decision and maximum profit under each recycling mode. Then we research the influence of the network preferences, recycling efficiency and remanufacture technology on enterprise’s decision-making and profit. And we eventually find the optimal recycling mode by comparative analyzing.Secondly, based on manufacturer tack-back model we obtained the optimal pricing decision of members of the supply chain under both decentralized decision mode and centralized decision mode by using Stackelberg game theory. After that, we compare the total profit of supply chain under different decision models and a revenue-sharing contract is proposed to coordinate the supply chain system. Finally, we study the scope of application of the coordination mechanism by numerical examples.We found the following results:1. When the online market share is equal to the offline market share, to make the online retail price equal the offline retail price is the retailer’s optimal pricing decision.2. When the online market share is equal to the offline market share, the retailer’s profit under optimal pricing decision is the lowest.3. No matter in which recycling mode, the maximum profit decreases with the increase of the recycling effort cost factor and the decreasing trend gradually slows down; The maximum profit increases with the increase of the cost saving through remanufactuing, and the increasing trend gradually grows.4. Under manufacturer tack-back mode, when the recycling subsidy is big, the optimal wholesale price decreases with the increase of the recycling effort cost factor, and the decreasing trend gradually slowed down; When the recycling subsidy is small, the optimal wholesale price increases with the increase of the recycling effort cost factor, and the increasing trend gradually slowed down; When the recycling subsidy is a specific value, the optimal wholesale price has no impact on the optimal wholesale price.5. When taking manufacturer tack-back mode, indicators including retail price, recycling rate and profit are better than those in the other two models. So manufacturer tack-back mode is the optimal recycling mode of dominant retailer’s dual-channel closed-loop supply chain.6. A revenue-sharing contract can achieve the coordination of dominant retailer’s dual-channel closed-loop supply chain and the existence of the coordination mechanism is confirmed by the numerical example analysis.