EFFECTS OF REVISING THE DECISIONS IN SUPPLY CHAINS

Abstract

Real life applications reveal that the supply chain actors may revise their decisions such as the wholesale prices or selling prices, when they feel that their decisions are no longer the optimal decisions for them. Motivating from this fact, this study investigates the economic and environmental effects of revising the decisions in a closed-loop supply chain consisting of a manufacturer, a remanufacturer, and a retailer. To this end, we propose game theory based models for the cases where the actors do not have the ability of revising their decisions (Case NR) and the actors have the ability of revising the decisions (Case R). After obtaining the equilibrium decisions in both cases, we compare the decisions under various parameter settings. Computational results bring significant managerial insights regarding the economic and environmental effects of revising the decisions in supply chains.