Research on closed-loop supply chain network equilibrium with two-type suppliers, risk-averse manufacturers and capacity constraints
Abstract: the aim of this
paper is to investigate the closed-loop supply chain (CLSC) network equilibrium
wiht the consideration of three practical factors: two complementary types of
suppliers, risk-averse character of the manufacturer and capacity constraints
of the suppliers.
Design/methodology/approach: The equilibrium of various decision makers
including the suppliers, the manufacturers, the retailers, the collectors and
the demand markets are modeled via finite-dimensional variational inequality,
respectively. Then the governing CLSC network equilibrium model is established.
The logarithmic-quadratic proximal prediction-correction algorithm is designed
to solve the variational inequality model. Numerical examples are given to
analyze the impact of return rate, risk-averse degree and capacity constraints
on the network equilibrium under different product BOMs.
Findings: with the increase of return rate, the profits of various
channel members and the performance of the CLSC system will improve. There is a
contradiction between profit maximization and risk minimization for the
manufacturers. Moreover, the economic behavior of the CLSC is likely to be
limited by the capacity constraints of the suppliers.
Originality/value: Prior to this paper, few papers have addressed with
the CLSC network equilibrium considering some practical factors. They assume
all the suppliers are identical and all the decision-makers are risk neutral.
Furthermore, the production capacities of all suppliers are assumed to be
infinite or large enough. To fill the gap, this paper examines the influences
of two-type suppliers, risk aversion and capacity constraints upon the CLSC
network equilibrium.
Keywords: closed-loop supply
chain network; variational inequalities; multi-type suppliers; risk averse;
capacity constraints
Author: Hao Sun, Li Jian,
Guitao Zhang
Journal Code: jptindustrigg150043
