Remanufacturing Closed-Loop Supply Chain Contract Coordination Considering Quality Control

The quality control of remanufactured products in a closed-loop supply chain (CLSC) can significantly influence consumers’ decision-making, and the contract coordination of CLSC has also become a research hotspot. This paper explores the quality control problem in a three-level remanufacturing CLSC consisting of a remanufacturer, a retailer, and a recycler by constructing a system dynamics (SD) model, which contains two contract schemes: quality control contract and quality control–revenue-sharing contract. Subsequently, the proposed SD model is analyzed using various schemes. The findings suggest that without mandatory contracts, CLSC members are frequently unable to fulfill their quality improvement commitments. Among them, recyclers are less likely to improve quality and more prone to breaking promises. The quality control problem in CLSC can be addressed through contract coordination, and the quality control contract scheme can avoid non-compliance with quality improvement commitments. The application of the quality control–revenue-sharing combination contract scheme not only resolves the quality control issue but also promotes profit improvement in the CLSC.

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Publication Details

Journal
Systems
Published
2024-09-06
DOI
https://doi.org/10.3390/systems12090350
Citations
1
Primary Topic
Sustainable Supply Chain Management
Type
article
Field-Weighted Citation Impact
0.55

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article

Remanufacturing Closed-Loop Supply Chain Contract Coordination Considering Quality Control

Desheng Xu, Mingli Liu, Wei Duan, Liping Han
1 citations
Systems
Sustainable Supply Chain Management
0.55
article

Remanufacturing Closed-Loop Supply Chain Contract Coordination Considering Quality Control

Desheng Xu, Mingli Liu, Wei Duan, Liping Han
article en
1 citations

Abstract

The quality control of remanufactured products in a closed-loop supply chain (CLSC) can significantly influence consumers’ decision-making, and the contract coordination of CLSC has also become a research hotspot. This paper explores the quality control problem in a three-level remanufacturing CLSC consisting of a remanufacturer, a retailer, and a recycler by constructing a system dynamics (SD) model, which contains two contract schemes: quality control contract and quality control–revenue-sharing contract. Subsequently, the proposed SD model is analyzed using various schemes. The findings suggest that without mandatory contracts, CLSC members are frequently unable to fulfill their quality improvement commitments. Among them, recyclers are less likely to improve quality and more prone to breaking promises. The quality control problem in CLSC can be addressed through contract coordination, and the quality control contract scheme can avoid non-compliance with quality improvement commitments. The application of the quality control–revenue-sharing combination contract scheme not only resolves the quality control issue but also promotes profit improvement in the CLSC.

SystemsVol. 12(9)
Inner Mongolia University of Technology (CN)
National Natural Science Foundation of China, Natural Science Foundation of Inner Mongolia
Openalex Percentile: Top 22%
Sustainable Supply Chain Management
0.55
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Remanufacturing Closed-Loop Supply Chain Contract Coordination Considering Quality Control — Desheng Xu, Mingli Liu, et al. · Systems (2024) | TGRS Research Map | TGRS