Corporate social responsibility in a closed-loop supply chain with dual-channel waste recycling

This paper proposes a socially responsible closed-loop supply chain for waste recycling. To produce the finished product from wastes, two different cases of recycling are considered -- either the manufacturer or the recycler does the recycling. The manufacturer puts effort to increase the demand for the finished product due to its corporate social responsibility (CSR). Different game models are developed in each case. Optimal decisions are obtained analytically and also through a numerical example. It is seen that though the manufacturer bears an extra cost to put effort for increasing the demand, the supply chain members can reach a win-win situation through a suitable revenue and cost sharing contract. It is further observed that recycling by the recycler is beneficial to the supply chain in comparison to the recycling done by the manufacturer itself. Sensitivity analysis depicts the overall performance of the supply chain with demand sensitive parameters.