1
Islamic Azad University, South Tehran Branch, Tehran, Iran
2
School of Industrial Engineering, University of Tehran, Tehran, Iran
Abstract
In today’s world, return policies and product quality play a significant role in customers’ decision-making when choosing a product. On the other hand, suppliers always seek to maximize their profit; therefore, they must consider appropriate pricing strategies for their products. This paper examines cooperation and competition in a closed-loop supply chain. The supply chain consists of two suppliers who compete with each other to sell their new product through a common retailer. To analyze the conditions, mathematical models are developed for three different scenarios: (1) a competitive system, (2) a cooperative system through the channel, and (3) a fully cooperative system. In each scenario, the optimal wholesale price, the optimal product quality, and the optimal refund price are mathematically modeled and obtained by solving the models. A numerical example is provided to illustrate the approach, and a sensitivity analysis is conducted to examine the impact of different parameters on the optimal values.
Mehrabi,S. and Talaeizadeh,A. (2015). Pricing in a closed-loop supply chain considering product quality and return policies. Journal of Quality Engineering and Management, 5(1), 23-38.
MLA
Mehrabi,S. , and Talaeizadeh,A. . "Pricing in a closed-loop supply chain considering product quality and return policies", Journal of Quality Engineering and Management, 5, 1, 2015, 23-38.
HARVARD
Mehrabi S., Talaeizadeh A. (2015). 'Pricing in a closed-loop supply chain considering product quality and return policies', Journal of Quality Engineering and Management, 5(1), pp. 23-38.
CHICAGO
S. Mehrabi and A. Talaeizadeh, "Pricing in a closed-loop supply chain considering product quality and return policies," Journal of Quality Engineering and Management, 5 1 (2015): 23-38,
VANCOUVER
Mehrabi S., Talaeizadeh A. Pricing in a closed-loop supply chain considering product quality and return policies. J. Qual. Eng. Manag., 2015; 5(1): 23-38.
