How Collection Cost Structure Drives the Manufacturer’s Reverse Channel Choice
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چکیده
This note discusses the impact of collection cost structure on the optimal reverse channel choice of manufacturers who remanufacture their own products. Using collection cost functions that capture collection rate and collection volume dependency, we show that the optimal reverse channel choice (retailerversus manufacturer-managed collection) is driven by how the cost structure moderates the manufacturer’s ability to shape the retailer’s sales and collection quantity decisions.
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How Collection Cost Structure Drives the Manufacturer’s Reverse Channel Choice
This paper discusses the impact of collection cost structure on the optimal reverse channel choice in decentralized uncoordinated supply chains. Using collection cost functions that capture collection rate and collection volume dependency, we show that the optimal reverse channel choice is driven by how the cost structure moderates the manufacturer’s ability to shape the retailer’s sales and co...
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