Channel leadership, performance and coordination in closed loop supply chains

Tsan Ming Choi, Yongjian Li, Lei Xu

Research output: Journal article publicationJournal articleAcademic researchpeer-review

309 Citations (Scopus)


The business values of product remanufacturing have been well-recognized in the literature. Companies have also increasingly realized the importance of coordinating the closed-loop supply chains (CLSCs) with both manufacturing and re-manufacturing processes. In this paper, we investigate a CLSC which consists of a retailer, a collector, and a manufacturer, and examine the performance of different CLSC under different channel leadership. Through a systematic comparison, we find that the retailer-led model gives the most effective CLSC. Moreover, we analytically reveal that the remanufacturing system's efficiency is highly related to a supply chain agent's proximity to the market. Counter-intuitively, we show that the collector-led model is not the most effective model for collecting the used-product. We finally illustrate how both the serial and parallel CLSCs can be coordinated by using different kinds of practical contracts.
Original languageEnglish
Pages (from-to)371-380
Number of pages10
JournalInternational Journal of Production Economics
Issue number1
Publication statusPublished - 1 Nov 2013


  • Channel leadership
  • Remanufacturing
  • Reverse logistics
  • Supply chain management

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Economics and Econometrics
  • Management Science and Operations Research
  • Industrial and Manufacturing Engineering

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