Journal
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
Volume 268, Issue 1, Pages 128-147Publisher
ELSEVIER SCIENCE BV
DOI: 10.1016/j.ejor.2018.01.003
Keywords
Supply chain management; Closed-loop supply chain; Joint maximization incentive; Competition; Battery sector
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In the battery sector, retailers can offer a joint maximization incentive to manufacturers to push up green activity program efforts and use the return rate as a marketing lever. Our results show that a joint maximization incentive always increases the manufacturers' investments in green efforts and profits. Nevertheless, it benefits retailers only in a few cases. Also, a joint maximization incentive allows a decentralized closed-loop supply chain to achieve the same level of social and environmental performance as a centralized one. Overall, a joint maximization incentive always allows the closed-loop supply chain to achieve the triple bottom line when retailers are economically better-off through its implementation. In the presence of competing retailers, a joint maximization incentive turns out to be more effective as it increases the chances to achieve the triple bottom line. (C) 2018 Elsevier B.V. All rights reserved.
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