Managing channel profits of different cooperative models in closed-loop supply chains

• The interactions among different parties in closed-loop supply chain are studied.
• Optimal decisions and system profits in various cooperative models are discussed.
• The more the members enter into an alliance, the higher the return rates are.
• Cooperative strategies can lead to win-win outcomes and increase the channel profit.

The importance of closed-loop supply chains has been widely recognized in literature and in practice. The paper investigates interactions among the different parties in a three-echelon closed-loop supply chain consisting of a single manufacturer, a single retailer and two recyclers and focuses on how cooperative strategies affect closed-loop supply chain decision-making. Various cooperative models are considered by observing recent research and current cases, and the optimal decisions and supply chain profits of these models are discussed. By comparing various coalition structures, we discover that cooperative strategies can lead to win–win outcomes and increase an alliance׳s profit and can be effective ways of achieving greater efficiency from the point of view of the overall supply chain. Finally, the paper presents a detailed comparative analysis of these models and provides insights into the management of closed-loop supply chains.