Manufacturer’s Collaborative Business Strategy with Two Different Reverse Channels in a Closed-Loop Supply Chain

Table 1

Nomenclature.

Index
t	Index of time period {1,…,T}
M	Manufacturer
R	Retailer
3PL	Recycler = Third-party logistics company
i	Customer type (1 = Customer who wants to discard the used cartridge, 2 = Customer who wants to refill the used cartridge)
j	Collector type (1 = Retailer, 2 = Recycler)
k	Customer group based on distance from the retailer (1 = first closest customer group, …, 5 = fifth closest customer group ∈ (1, 2, 3, 4, 5)
τ	Scaling parameter
Terms	Description	Measure
RP	Retail price	$/unit
RFP	ReFilling price	$/unit
WP	Wholesale price	$/unit
RCF	ReCycling	Fee $/unit
MC	Manufacturing cost	$/unit
PMC	ReManufacturing cost	$/unit
PRi∈{1},k,t	Perceived rewards of customer in period t	$/unit
Dt	Demand of new customers purchasing cartridge in period t	Person/month
NCit	Number of Customer type i in period t	Person/month
WCi∈{1},k,t	Willingness of Customer group k of customer type 1 in period t	%/month
WCi∈{2},t	Willingness of Customer type 2 in period t	%/month
QREM	Quantity of new cartridges REManufactured in period t	units/month
SP^j	Sharing Portion paid to collector j by manufacturer	%/month
	Total number of Cartridges collected by Retailer in period t	units/month
	Return Rewards paid to the customer by the retailer in period t	$/month
	MAXimum return REwards paid to customer type i by retailer	$/month
BRR^i	Basic Rewards Rate set by retailer	%
BRF^3PL	Basic Recycling fee set by Recycler	$
	Change rate of Retailer’s Profit in period t	%/month
WFk	Weight factor based on the distance between the retailer and customer group k
REVt	Total REVenue in period t	$/month
COSTt	Total COST in period t	$/month
	Total amount shared by the manufacturer with the retailer and recycler in period t	$/month
PROFITt	Total PROFIT in period t	$/month