A research on the closed-loop supply chain decision-making considering free riding behavior under different authority structure

Li Xinran, Liu Yuanyuan,Yu Mingnan

Science Research Management ›› 2018, Vol. 39 ›› Issue (3) : 45-58.

Science Research Management ›› 2018, Vol. 39 ›› Issue (3) : 45-58.

A research on the closed-loop supply chain decision-making considering free riding behavior under different authority structure

  • Li Xinran, Liu Yuanyuan,Yu Mingnan
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Abstract

This article, which depends on the breakthrough point of Consumer Free Riding Behavior aiming at the closed-loop supply chain system composed of the single manufacturers and retailers, studies how Consumer Free Riding Behavior affects the policy, channel and profit of the different authority structure of closed-loop supply chain (CLSC) based on the game theory by constructing the decision-making models of centralized decision, manufacture-Stackelberg game, retailer-Stackelberg game and manufacture-retailer Nash Equilibrium respectively. The research shows that the total profit of the centralized decision-making closed-loop supply chain and the profit of authorities under the decentralized decision-making of the Stackelberg game leading by manufacturer are influenced by the free-riding coefficient. The price of direct channel and market requirement increases with the increase of free riding coefficient in all condition.

Key words

different authority structure / free riding behavior / closed-loop supply chain / decision

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Li Xinran, Liu Yuanyuan,Yu Mingnan. A research on the closed-loop supply chain decision-making considering free riding behavior under different authority structure[J]. Science Research Management. 2018, 39(3): 45-58

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