Pricing and coordination of closed-loop supply chain considering retailer's dual-channel and difference in recycled products quality

To study the influence of retailers' dual-channel structure and quality of recycled products on the optimal decision-making of the closed-loop supply chain, a multi-channel closed-loop supply chain model with a manufacturer, a retail and a third party was established. On this basis, the situations that the online sale channel coexisted with the offline channel as well as the quality difference of recycled products were considered. With the retailer dominating the supply chain, the optimal pricing strategy and supply chain member's profit were analyzed under centralized decision-making and decentralized decision by Stackelberg theory. The result showed that the efficiency loss was leaded by decentralized decision. Based on the optimal result of centralized decision, a profit and expense sharing contract was designed to improve the profit of supply chain members. The results also show that high quality recycled products could not affect the pricing decision in the forward supply chain, but had a positive effect on the profit of the supply chain and the amount of recycled products. A numerical analysis was given to certify the relevant conclusions. © 2021, Editorial Department of CIMS. All right reserved.