Coordination of the closed-loop supply chain for product line design with consideration of remanufactured products

Research on integrated products and the closed-loop supply chain design has focused on the competition and coordination of manufacturers and supply chain partners. However, the coordination of supply chain partners for product line design (PLD) with consideration of remanufactured products has not been addressed in previous studies. The present study investigates the coordination of a manufacturer and supply chain partners using a game theoretical model for the design of product lines that contain both new and remanufactured products. A multiobjective optimization model based on Stackelberg game theory is formulated to determine the product line solutions, pricing decisions of supply chain partners, and product return rate for remanufacturing. A non-dominated sorting genetic algorithm II is introduced to determine the Pareto optimal solutions of the multiobjective optimization problems. A case study is conducted on the coordination of a manufacturer, chain retailers, and a remanufacturer for the PLD of tablet PCs with consideration of remanufactured tablet PCs to illustrate the applicability and effectiveness of the proposed methodology.

[1]  P. K. Kannan,et al.  New Product Development Under Channel Acceptance , 2007 .

[2]  Panlop Zeephongsekul,et al.  A game theory approach in seller-buyer supply chain , 2009, Eur. J. Oper. Res..

[3]  K. Train.  Discrete Choice Methods with Simulation , 2003 .

[4]  Trisha D. Anderson,et al.  The closed-loop supply chain network with competition, distribution channel investment, and uncertainties , 2013 .

[5]  Wei Chen,et al.  Decision-Based Design: Integrating Consumer Preferences into Engineering Design , 2012 .

[6]  Jen-Ming Chen,et al.  Dynamic pricing for new and remanufactured products in a closed-loop supply chain , 2013 .

[7]  Cheng-Han Wu.  OEM product design in a price competition with remanufactured product , 2013 .

[8]  Georges Zaccour,et al.  A two-period game of a closed-loop supply chain , 2012, Eur. J. Oper. Res..

[9]  Yixiong Feng,et al.  Product platform two-stage quality optimization design based on multiobjective genetic algorithm , 2009, Comput. Math. Appl..

[10]  S. Deng,et al.  Integrated product line design and supplier selection: A multi-objective optimization paradigm , 2014, Comput. Ind. Eng..

[11]  Wei Chen,et al.  An Approach to Decision-Based Design With Discrete Choice Analysis for Demand Modeling , 2003 .

[12]  Timothy W. Simpson,et al.  A Multiattribute Utility Theory-Based Method for Product Line Selection , 2007 .

[13]  Guoqing Zhang,et al.  Optimal production planning for a multi-product closed loop system with uncertain demand and return , 2011, Comput. Oper. Res..

[14]  Mostafa Zandieh,et al.  A game theory-based model for product portfolio management in a competitive market , 2011, Expert Syst. Appl..

[15]  Charles X. Wang,et al.  Closed-loop supply chain models for a high-tech product under alternative reverse channel and collection cost structures , 2014 .

[16]  Lan Luo,et al.  Product Line Design for Consumer Durables: An Integrated Marketing and Engineering Approach , 2011 .

[17]  S. Ryan,et al.  Optimal Price and Quantity of Refurbished Products , 2006 .

[18]  Kalyanmoy Deb,et al.  Simulated Binary Crossover for Continuous Search Space , 1995, Complex Syst..

[19]  V. Daniel R. Guide,et al.  The Potential for Cannibalization of New Products Sales by Remanufactured Products , 2010, Decis. Sci..

[20]  Luk N. Van Wassenhove,et al.  Closed - Loop Supply Chain Models with Product Remanufacturing , 2004, Manag. Sci..

[21]  Luk N. Van Wassenhove,et al.  Remanufacturing as a Marketing Strategy , 2008, Manag. Sci..

[22]  Kalyanmoy Deb,et al.  A fast and elitist multiobjective genetic algorithm: NSGA-II , 2002, IEEE Trans. Evol. Comput..

[23]  Dilip Chhajed,et al.  Product and sales contract design in remanufacturing , 2014 .

[24]  Sanjeev Swami,et al.  Channel coordination in green supply chain management , 2013, J. Oper. Res. Soc..

[25]  George Q. Huang,et al.  Integrated Configuration of Platform Products and Supply Chains for Mass Customization: A Game-Theoretic Approach , 2007, IEEE Transactions on Engineering Management.

[26]  Karl T. Ulrich,et al.  Special Issue on Design and Development: Product Development Decisions: A Review of the Literature , 2001, Manag. Sci..

[27]  Winfried Steiner,et al.  A Stackelberg-Nash model for new product design , 2010, OR Spectr..

[28]  Jianmai Shi,et al.  Optimal production and pricing policy for a closed loop system , 2011 .

[29]  S. Baskar,et al.  NSGA-II algorithm for multi-objective generation expansion planning problem , 2009 .

[30]  Jayashankar M. Swaminathan,et al.  Managing new and differentiated remanufactured products , 2010, Eur. J. Oper. Res..

[31]  Minjung Kwak,et al.  Market Positioning of Remanufactured Products With Optimal Planning for Part Upgrades , 2012 .

[32]  Fazleena Badurdeen,et al.  Integrating Sustainable Product and Supply Chain Design: Modeling Issues and Challenges , 2013, IEEE Transactions on Engineering Management.

[33]  Cheng-Han Wu,et al.  Product-design and pricing strategies with remanufacturing , 2012, Eur. J. Oper. Res..

[34]  Jiafu Tang,et al.  A Multiobjective Optimization Approach for Product Line Design , 2011, IEEE Transactions on Engineering Management.

[35]  Johan Östlin,et al.  Product life-cycle implications for remanufacturing strategies , 2009 .

[36]  L. B. Toktay,et al.  Joint Life‐Cycle Dynamics of New and Remanufactured Products , 2006 .

[37]  Carlos A. Méndez,et al.  Multi-period design and planning of closed-loop supply chains with uncertain supply and demand , 2014, Comput. Chem. Eng..

[38]  Cheng-Han Wu.  Price and service competition between new and remanufactured products in a two-echelon supply chain , 2012 .

[39]  S. Chan Choi,et al.  Game theoretic derivations of competitive strategies in conjoint analysis , 1993 .

[40]  V. Daniel R. Guide,et al.  OR FORUM - The Evolution of Closed-Loop Supply Chain Research , 2009, Oper. Res..

[41]  Harrison Hyung Min Kim,et al.  Design for life-cycle profit with simultaneous consideration of initial manufacturing and end-of-life remanufacturing , 2013 .

[42]  Johan Östlin,et al.  Importance of closed-loop supply chain relationships for product remanufacturing , 2008 .

[43]  Takeo Kanade,et al.  Discriminative cluster analysis , 2006, ICML.

[44]  Paul E. Green,et al.  An Application of a Product Positioning Model to Pharmaceutical Products , 1992 .

[45]  James F. C. Windmill,et al.  Design for remanufacture: a literature review and future research needs , 2011 .

[46]  Roger J. Jiao,et al.  Green modular design for material efficiency: a leader–follower joint optimization model , 2013 .

[47]  Gilvan C. Souza.  Closed-Loop Supply Chains: A Critical Review, and Future Research , 2013, Decis. Sci..

[48]  George Q. Huang,et al.  Price coordination in a three-level supply chain with different channel structures using game-theoretic approach , 2010 .