Coordinating Location Information Sharing Strategy in a Sustainable Dual-Channel Closed-Loop Supply Chain

This study contributes to the literature by introducing the role of "location information sharing strategy" in optimizing the closed-loop supply chain (CLSC) performance. In the investigated CLSC, one manufacturer collects the used products through two collectors. The collectors may face collection disruptions and adopt the location information sharing strategy to overcome the disruptions. More precisely, the collector who faces disruption shares the customers' location information with its rival to collect the used products. On the other hand, the manufacturer invests in the corporate social responsibility effort, which has bilateral effects on the forward and reverse flows. The products are sold through online and retail channels. The problem is first formulated in decentralized and centralized settings. Afterward, a coordination mechanism is developed to maximize profitability. The data from the case study is used to evaluate the performance of the proposed structures. The results indicate that the developed contract improves profitability and sustainability. Moreover, it is shown that the location information sharing strategy can be an efficient strategy for managers to overcome collection disruptions.