Research On Logistics Strategies Of A Closed-Loop Supply Chain With Dominant Manufacturer Under Different Collection Cost Structures

Since the 1990 s,the rapid development of economy and technology has led to the rapid growth of waste electrical and electronic.Waste electronics would pollute the environment and damage the ecology,and ultimately threaten the survival of humans and other creatures.Therefore,in order to recycle productive resources,governments introduce the corresponding laws and regulations requiring manufacturers to remanufacture waste electrical appliances.These factors contribute to the rapid development of a closed-loop supply chain.With the logistics service providers gradually involves in the business of a closed-loop supply chain,a certain study has been developed about a closed-loop supply chain considering the logistics strategies,but there are still some research blind spots.The research about closed-loop supply chain considering logistics strategies only assumes that the collection cost is economies of scale,but the collection costs are divided into economies of scale and diseconomies of scale.Therefore,it is of greatly practical and theoretical significance to study the impact of different collection costs on the enterprise logistics strategy.In this paper,under different collection costs,the Stackelberg game is used to separately build the In-house logistics model composed of a manufacturer and a retailer,and the outsourcing logistics model composed of a manufacturer,a retailer and a logistics service provider.Then,the enterprise decision-making results are obtained by reverse solution method in In-house and outsourcing logistics model.Comparing manufacturers’ and retailers’ profit in In-house and outsourcing logistics model makes a conclusion about the basis of how a manufacturer and a retailer selects the logistics strategy,and the stability of a closed-loop supply chain.In the end,the numeric examples are used to verify validity of the model.Research shows:Under the economies of scale in collection cost,when the logistics cost factor is less than or equal to 0.39,That the logistics service provider involves in the closed-loop supply chain is beneficial for manufacturers,retailers and consumers,because it increases demand and the profit of manufacturers and retailers by reducing the price of products;when the logistics cost factor is greater than 0.75,the manufacturer’s logistics strategy is In-house logistics,and retailers are willing to cooperate with In-house logistics manufacturers,and the supply chain is stable;when the logistics cost factor is greater than 0.39 and less than 0.75,the manufacturer’s logistics strategy is outsourcing logistics,and retailers tend to cooperate with the In-house logistics manufacturers,and the supply chain is unstable.Under the diseconomies of scale in collection cost,when the logistics cost factor is less than or equal to 0.29,That the logistics service provider involves in the closed-loop supply chain is beneficial for manufacturers,retailers and consumers,because it increases demand and the profit of manufacturers and retailers by reducing the price of products;when the logistics cost factor is greater than 0.7,the manufacturer’s logistics strategy is In-house logistics,and retailers are willing to cooperate with In-house logistics manufacturers,and the supply chain is stable;when the logistics cost factor is greater than 0.29 and less than 0.7,the manufacturer’s logistics strategy is outsourcing logistics,and retailers tend to cooperate with the In-house logistics manufacturers,and the supply chain is unstable.