Research On Pricing And Recovery Decision Of Dual Channel Closedloop Supply Chain Considering Online Reviews

This paper explores the impacts of consumer online review(OCR)on the game equilibrium and profits of the dual channel closed-loop supply chain with three collection modes under two cases of cost structures in collection and remanufacturing:economic of scale and diseconomy of scale,and compares the equilibrium solutions,profits and the impact of OCR of the three collection modes with that of the noncollection mode.The main conclusions are as follows:(1)Whether it is economic of scale or diseconomy of scale in collection and remanufacturing costs,for the dual channel closed-loop supply chain with three collection modes,when the product valuation fed back by OCR is higher(lower)than the corresponding threshold,the online channel prices,retail channel prices,manufacturer ’s profits and total channel profits with OCR are higher(lower)than those without OCR.When the OCR impact weight is lower than a certain level,the price threshold and profit threshold are independent of the OCR impact weight.On the contrary,when the impact weight of OCR is higher than the level,the price threshold(profit threshold)increases(decreases)with the increase of impact weight.In case of economic of scale,the price threshold(profit threshold)also depends on the investment collection coefficient,remanufacturing cost savings and collection competition intensity;while in case of diseconomy of scale,the thresholds are not affected by the above parameters.(2)When the collection and remanufacturing costs exhibit(dis)economic of scale,the favorable OCR valuation information will improve(reduce)the collection rates of all collection agents.When the collection and remanufacturing costs exhibit economic of scale,favorable OCR valuation information will increase the third-party’s profit under the third-party-collection mode,but its impact on the third-party’s profit under the hybrid collection mode depends on the collection competition intensity.When the collection and remanufacturing costs exhibit diseconomy of scale,the third-party’s profit in the third-party-collection mode and hybrid collection mode is not affected by OCR.The introduction of OCR will always damage the profit of retailer regardless of which cost structure in collection and remanufacturing.(3)Whether it is economic of scale or diseconomy of scale in collection and remanufacturing costs,the retailer’s profits in the three collection modes are equal.The manufacturer’s profit of the hybrid collection mode is higher than manufacturercollection mode and third-party-collection mode in turn.The total channel profit of manufacturer-collection mode is always better than third-party-collection mode,and the comparison of total channel profits between hybrid collection model and the two single collection modes depends on the collection competition intensity.When the collection and remanufacturing costs exhibit economic of scale,if the product information fed back by OCR is unfavorable or particularly favorable,the thirdparty’s profit under third-party-collection mode is better than that under hybrid collection mode.When the OCR valuation level is medium,if the competition intensity is lower(higher)than the threshold,the third-party’s profit under hybrid collection mode(third-party-collection mode)is better.When the collection and remanufacturing costs exhibit diseconomy of scale,the third-party’s profit in thirdparty-collection mode is better than that in hybrid collection mode.When the collection and remanufacturing costs exhibit economic of scale,the possibility that OCR is beneficial to the manufacturer under hybrid collection mode is higher than that of manufacturer-collection mode and third-party-collection mode,and the possibility that OCR is beneficial to the whole system under manufacturer-collection mode is higher than that of third-party-collection mode.The comparison between hybrid collection and the two single collection modes depends on the collection competition intensity.When the collection and remanufacturing costs exhibit diseconomy of scale,the profit threshold point of manufacturer’s profit and total channel profit is the same under different collection modes.(4)Whether it is economic of scale or diseconomy of scale in collection and remanufacturing costs,the retailer’s profit in three collection modes is equal to that of the non-collection mode,while the manufacturer’s profit and the total system profit are always better than that of the non-collection mode.When the collection and remanufacturing costs exhibit economic of scale,the favorable OCR valuation information will make the dual channel price(demand)of the three collection modes lower(higher)than that of the non-collection mode,and the manufacturers and the whole system are easier to benefit from OCR.When the collection and remanufacturing costs exhibit diseconomy of scale,regardless of the OCR valuation level,the dual channel prices,demands and the benefit threshold points of the manufacturer and the whole system in three collection modes are the same as that with no collection.This research can provide theoretical supports for manufacturers to realize sales and collection and remanufacturing promotion with the help of OCR platform.