Collective Recycling Responsibility in Closed-Loop Fashion Supply Chains with a Third Party: Financial Sharing or Physical Sharing?

Table 1

Notations in the models.

Notation	Definition
𝜙	The potential market demand
𝛽	The customers’ sensitive coefficient to the retail price
𝑐𝑚	The unit cost of manufacturing a new product by using raw materials
𝑐𝑟	The unit cost of remanufacturing a used product to a new product
𝑘3𝑝	The collecting cost coefficient of the third-party firm
𝑘𝑚	The collecting cost coefficient of the manufacturer
𝑏	The transfer price paid from the manufacturer to the third party for each unit of the used product returned by the third party
𝑝	The retail price of the product, which is decided by the retailer
𝑤	The wholesale price of the product, which is decided by the manufacturer
𝑥	The cost sharing percentage in the FS scheme, which is decided by the manufacturer
𝑦	The responsibility sharing percentage in the PS scheme, which is decided by the manufacturer
𝜏	The return rate of the used products from customers, which is decided by the third party
Π^𝑗𝑖	The profit functions of firm 𝑖 in Model 𝑗, where 𝑖=𝑟,𝑚,3𝑝 denote the retailer, the manufacturer, and the third-party firm, respectively, and 𝑗= N, FS, PS denote Models N, FS, and PS, respectively