Pricing and Collection Rate Decisions and Reverse Channel Choice in a Socially Responsible Supply Chain With Green Consumers

Abstract

This paper investigates the price and collection rate decisions and reverse channel structure strategy of a dyadic closed-loop supply chain with corporate social responsibility and green consumers, within which the manufacturer and green consumers exhibit environmental responsibility behaviors. The manufacturer decides who to collect used products. We find that 1) the retail price, collection rate, and sales quantity may simultaneously increase with the environmental responsibility degree of the manufacturer/green consumers; 2) adopting the reverse channel with manufacturer-managed collection leads to a lower retail price, higher collection rate, or higher sales quantity than implementing the reverse channel with retailer-managed collection under certain conditions; 3) the centralized system benefits from manufacturer-managed collection if and only if the collection effectiveness of the retailer is lower than that of the manufacturer; 4) the manufacturer/supply chain benefits from manufacturer-managed collection if and only if the collection effectiveness of the retailer is relatively low; and 5) the social welfare of the decentralized system under manufacturer-managed collection may be higher than that under retailer-managed collection.

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