Presenting a mathematical model based on game theory to maximize profit in closed loop supply chain

Subject Areas :

Feraidoun Lotfollahi ¹ , yagoub Alavi matin ² , sahar khoshfetrat ³ , Mohammad paseban ⁴ , ali bafandeh ⁵

1 - Ph.D. Candidate in management, Department of management, Tabriz Branch, Islamic Azad University, Tabriz, Iran.
2 - Department of Management, Faculty of Management, Economics and Accounting, Islamic Azad University, Tabriz Branch, Tabriz, Iran
3 - Mathematics Department. Faculty of Basic Sciences. Islamic Azad University. Tabriz . Iran
4 - Group Management, Tabriz Branch, Islamic Azad University, Tabriz, Iran
5 - tabriz

Received: 2024-02-17 Accepted : 2024-07-29

Keywords: supply chain, closed loop, game theory, profit maximization, uncertainty,

Abstract :

The stability is a necessary and sufficient condition for the stability of companies. Sustainability of an organization is its profitability. The aim of this research is to present a mathematical model based on game theory in order to maximize profit in the supply chain. In the closed loop supply chain is to eliminate waste and optimize the consumption of products in such a way that the products are separated into two groups, new product and used product, and there is the possibility of returning used product and reproduced products in the consumption cycle. has it. For this purpose, in the current research, a mathematical model based on game theory is designed in which cooperation between upstream and downstream members occurs. It is clear demand, returned products, recycled products and remanufactured products have on the profit of the chain members. How can the total profit of chain members and the share of individual members be increased and under what conditions this increase is achieved. The results show that demand is a factor that can increase the profit of all members of the chain.Returned products have a positive effect on the profit of all members, while recycled products and remanufactured products, in If it increases, it only increases the profit of the reproducer and recycler and reduces the profit of other members significantly at different levels. The innovation of this research includes the simultaneous examination of demand, returned products, recycled products and remanufactured products affecting the profitability of the closed loop supply chain.

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