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Reused Product Pricing and Stocking Decisions in Closed-Loop Supply Chain

Sustainability in supply chains is increasingly becoming one of the main themes in operations and supply chain management literature and business practices. Within the framework of Sustainable Supply Chain Management (SSCM), this paper studies the sequential pricing and stocking decisions in a closed-loop supply chain when the firm makes its sourcing decisions in dual supply channels including both a reliable supplier and an unreliable recycle/reuse channel. We use analytical modeling approach and obtain the optimal decisions under uncertainties in both supply and demand. Numerical examples are utilized to demonstrate the application and provide managerial insights.