Price Decisions of Closed-Loop Supply Chain with and without Competition
In this paper, we focus on the price decisions of the wholesale price, the retail price and the collecting price for the closed-loop supply chain with and without competition. We obtain the optimal decisions based on two models: Model I without competition and Model II with competition. By the analysis of a numerical example, we find that the competition between the manufacturers in model II will affect their prices decisions and their profits; in model II, the two manufacturers would like to halve the market while the retailer hope to increase the difference of their market shares, and the two manufacturers would not like to increase the substitute ratio of their products while the retailer can benefit from that. So, from the manufacturers’ point of view, they should avoid the competition risk by choosing the independent retailers.
Helen Zhang, Gang Shen and David Jin
Q. L. Gu and T. G. Gao, "Price Decisions of Closed-Loop Supply Chain with and without Competition", Advanced Materials Research, Vols. 204-210, pp. 1710-1715, 2011