Managing channel profit and total surplus in a closed-loop supply chain network

Sarat Kumar Jena, Abhijeet Ghadge, Sarada P. Sarmah

Research output: Contribution to journalArticlepeer-review

35 Citations (Scopus)
40 Downloads (Pure)


Today’s government is interested in the product recovery program in order to encourage sustainability. The research develops four closed-loop supply chain models by considering different scenarios for the governmental subsidies and fees under price sensitive demand. Analytical results suggest that the government should provide subsidies to both manufacturer and collector in order to maximize channel profit and total surplus. Higher subsidies advocates manufacturer’s intention to lean towards remanufacturing activities under given manufacturing and consumption fees scenarios. The sensitivity analysis reveals that the total surplus and channel profit increases as subsidies increase in all closed-loop supply chain models.
Original languageEnglish
Pages (from-to)1345-1356
Number of pages12
JournalJournal of the Operational Research Society
Issue number9
Publication statusPublished - 22 Nov 2018


  • government regulation
  • Mathematical modeling
  • Closed-Loop Supply chain


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