Emergency Strategies of Closed-Loop Supply Chain with Single Retailer Recycling under Demand Disruptions

Table 1

Notations.

Symbol	Description
Parameters
cn	Manufacturing cost of unit new product
cr	Manufacturing cost of unit remanufactured product
Δ	Unit cost savings from remanufacturing, Δ = cn − cr ≥ 0
ϕ	Market size
φ	Disruption of market demand, ϕ + φ ≥ 0
β	Substitution rate of competing retailers selling the same product, β ∈ [0, 1]
Variables and functions
	Wholesale price of unit product sold by manufacturer to retailers
τ	Recycling rate of waste products, τ ∈ [0, 1]
pi	Retail price of unit product sold by retailers to consumers, i = 1, 2 (represent retailer 1 and retailer 2, respectively)
b	Unit compensation price provided by the manufacturer to retailer 1 for recycling waste products, b ∈ [0, Δ]
I	Fixed investment cost of recycling waste products by retailer 1, I = hτ2, h is a scale parameters
qi	Market demand of the retailer i, , i, j = 1, 2
Q	Market demand of both products,
πk	Profit function, k = M, R1, R2 (represent manufacturer, retailer 1 and retailer 2, respectively)