A Closed-loop supply chain(CLSC)consisting of one manufacturer and two competing retailers was studied to investigate whether to implement the product warranty or not under retailers'competition from the perspective of the retailer.Three decision models under different product warranty decision of retailers were established,including Model N that no retailer implements product warranty,Model NE that only one retailer implements product warranty and Model EE that two retailers implement product warranty simultaneously.In addition,we compared these models with the closed-loop supply chain of only one retailer.The results show that:Manufacturers tend to use dual-channel to distribute their products.Under retailer competition,both of competing retailers in the CLSC should provide product warranty to maximize their own profits simultaneously.But the level of the product warranty provided by one retailer should be undifferentiated from that of his competing retailer.The behavior that two competing retailers provide the same product warranty simultaneously increases optimal retail price and the optimal level of product warranty,and then improve the profit of manufacturers and CLSC.Finally,the role of the cost sharing-revenue sharing contract in the decisions of supply chain members were discussed,and the results show that both the manufacture and retailers could achieve Pareto improvement under the contract.
NETL
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