Title :
Cooperation and profits distribution of reverse supply chain based on the different outsourcing degrees
Author :
Wenwei, Gong ; Jianguo, Pan
Author_Institution :
Sch. of Bus. Adm., Jiangsu Univ., Zhenjiang, China
Abstract :
This paper discusses cooperation and profits sharing of a triple-echelon Reverse Supply Chain (RSC) composed of one manufacturer, one third party logistics provider and retailers from the perspective of different outsourcing degrees. Divided the RSC cooperation into three degrees, it models and analyzes the variances of product price, product recovery rate, firm´s profits, customer benefits, resources reuse and overall profits. Cooperation profits are distributed by using the Shapley value method. Conclusions are reached that firms, customers and natural environment achieves a win-win-win status, which means that product retail price is falling and return rates, overall profits, individual profits are rising with the deepening outsouring cooperation of RSC. Reduced price benefits more consumers and increased return rate improves the reuse of natural resources.
Keywords :
incentive schemes; outsourcing; reverse logistics; supply chain management; customer benefits; firm profits; outsourcing degrees; product recovery rate; product retail price; profit distribution; profits sharing; resources reuse; reverse supply chain cooperation; third party logistics provider; third party logistics retailers; Clothing industry; Control systems; Costs; Industrial control; Logistics; Outsourcing; Production; Supply chain management; Supply chains; Textile industry; Cooperation; Product Take-back; Profit Allocation; Reverse Supply Chain; Shapley Value Algorithm;
Conference_Titel :
Industrial Engineering and Engineering Management, 2009. IE&EM '09. 16th International Conference on
Conference_Location :
Beijing
Print_ISBN :
978-1-4244-3671-2
Electronic_ISBN :
978-1-4244-3672-9
DOI :
10.1109/ICIEEM.2009.5344388