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70. Research on profit control strategies of remanufacturing supply chain considering dual sales effort

Invited abstract in session MA-28: Advancements of OR-analytics in statistics, machine learning and data science 1, stream Advancements of OR-analytics in statistics, machine learning and data science.

Monday, 8:30-10:00
Room: 065 (building: 208)

Authors (first author is the speaker)

1. Juhong Gao
College of Management and Economics, Tianjin University

Abstract

Considering the consumption preference and fairness concern, this paper constructs a sub-channel remanufacturing supply chain in which manufacturer sell new products through retail channel and remanufactured products through direct channel. The optimal profit equilibrium strategy in the centralized and decentralized decision making of sub-channel remanufacturing supply chain with or without sales effort is studied by means of differential game analysis, considering the effect of time attenuation of advertising effect generated by dual sales effort of manufacturer and retailer. It is found that regardless of the initial advertising effect size of new products and remanufactured products, both manufacturer and retailer must take sales efforts in a certain period to stabilize the supply chain profits，and there exists a critical value for the time to take sales efforts. In addition, it is revealed that the changing trend and the final stable value of the advertising effect of products depend on the optimal sales effort level and the effect of sales effort on the advertising effect, thus finding the changing law of the profit of the members of the supply chain and the total profit over time. This study provides a theoretical basis for supply chain member enterprises to effectively implement sales efforts on the profit control strategy of the sub-channel remanufacturing supply chain.

Keywords

Status: accepted

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