Title: A sustainable closed-loop supply chain in a two-period: a game theory approach

Authors: Solaleh Sadat Kalantari-Kohbanani; Maryam Esmaeili; Leopoldo Eduardo Cárdenas-Barrón; Sunil Tiwari; Ali Akbar Shaikh

Addresses: Department of Industrial Engineering, Faculty of Engineering, Alzahra University, Tehran, Iran ' Department of Industrial Engineering, Faculty of Engineering, Alzahra University, Tehran, Iran ' Department of Industrial and Systems Engineering, School of Engineering and Sciences, Tecnológico de Monterrey, E. Garza Sada 2501 Sur, Monterrey, Nuevo León, C.P. 64849, Mexico ' The Logistics Institute – Asia Pacific, National University of Singapore, 21 Heng Mui Keng Terrace, Singapore 119613, Singapore ' Department of Mathematics, The University of Burdwan, Burdwan, 713104, India

Abstract: The closed-loop supply chain considers forward and reverse logistics. This paper assumes a two-period setting to demonstrate the interaction and effect of periods on the supply chain. In the first period, the manufacturer acts as a leader which produces new products and sells them to the retailer, and the retailer sells them to customers. In the second period, the manufacturer collects used-products to take profit. The objective of this study is to take care of economic, green, and social issues for both manufacturer and retailer in both periods. It presented a flexible solution method in two phases. A numerical example is presented and solved by applying the proposed solution method. Results indicate that the manufacturer as a leader obtains more profit, whereas the retailer is more sensitive towards the discount rate. Moreover, the retailer's profit is more sensitive to the proportion of returned used products than the manufacturer's profit. [Received: 15 April 2019; Accepted: 15 March 2020]

Keywords: closed-loop supply chain; CLSC; game theory; two-period setting; sustainable.

DOI: 10.1504/EJIE.2021.114030

European Journal of Industrial Engineering, 2021 Vol.15 No.2, pp.226 - 249

Received: 15 Apr 2019
Accepted: 15 Mar 2020

Published online: 12 Mar 2021 *

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