Impact of government incentive on price competition of closed-loop supply chain systems

What is it about?

Considering the adverse impact of used products in the environment, the government has come forward to provide an incentive to encourage remanufacturing. However, the importance of government incentives in remanufacturing systems has not received adequate attention in the literature. This paper focuses on how government incentives can affect business decisions of a three-echelon remanufacturing system under price competition. For the analysis, we develop mathematical models for the remanufacturing configurations of decentralized and integrated systems. These models are illustrated through a numerical case study and the results show that the return rate and channel profit increases as the government incentive increase under perfect competition. By comparing various models.

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Why is it important?

This work is related to government incentives schemes for the CLSC

Perspectives