This book describes a closed-loop supply chain (CLSe model with
used product collecting and remanufacturing, or in other words, a
reverse logistics model. The key feature of this book is that the
CLSC model is retailer-driven while traditional CLSC models have
been manufacturer- driven. This book is motivated by the emergence
of super retailers such as Wal-Mart in recent years. These super
retailers have tremendous pricing and supply chain power over other
parties in the supply chain. This book shows that a loss leader
pricing strategy is the optimal strategy for the super retailer,
that is, the super retailer intentionally loses money for each used
product returned in the reverse supply chain flow so as to make the
maximum total profit considering both forward and reverse flows.
This book also illustrates various ramifications of the
retailer-driven model with respect to coordination mechanisms,
policy implications, and third-party logistics. People who are in
the supply chain management area, particularly in the reverse
logistics area, will find this book enlightening and interesting.
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