Mean-Variance Analysis for Optimal Operation for Green Supply Chain with Uncertainties in Product Demand and Collectable Quantity of Used Products

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1 Men-Vince nlysis fo Oiml Oeion fo Geen Sly Chin wih Unceinies in Poc emn n Collecble Qniy of Use Pocs oo Thshi Cose of Elecicl n Eleconic Sysems, College of Engineeing Os Pefece Univesiy, Si, Os, , Jn Tel: (+8) , Emil: sv060@eosf-c Eso Ksw Cose of Elecicl n Eleconic Sysems, College of Engineeing Os Pefece Univesiy, Si, Os, , Jn Tel: (+8) , Emil: sw@eisosf-c bsc This e iscsses is mngemen eging he nceinies in oc emn n collecble qniy of se ocs occing in geen sly chin(gsc) s oeions n cles how wo nceinies s iss ffec he oiml oeion in GSC wih eile(r) n mnfce(m) R ys n incenive fo collecion of se ocs n sells single ye of ocs in me ing single eio M oces n oe qniy of ocs sing ecyclble s wih cceble qliy levels n coves of R s incenive s o he ecycle s R fces he nceinies in he oc emn n he collecble qniy Menvince nlysis is conce fo hee is ies on wo nceinies: is nel ie, is-vese ie, is-one ie The oiml ecisions fo oc oe qniy, sle ice, mximm collecion qniy, ni collecion incenive n lowe limi of qliy level e eemine ne he ecenlize GSC(GSC) n he inege GSC(GSC) GSC oimizes ech membe s iliy fncion, menwhile GSC oes he whole sysem s The nlysis nmeiclly illses how hee is ies ffec he oiml oeions in GSC The benefi of sly chin cooinion oing sh Bgining solion o shif fom GC o GSC is iscsse Keywos: geen sly chin, nceinies in oc emn n collecion qniy of se ocs, menvince nlysis, sly chin cooinion, gme heoy TROUCTO Fom socil concens bo 3R (ece, ese, ecycle) civiy wolwie, i is genly-neee o consc geen sly chin (GSC) fom collecion of se ocs hogh ecycling of hem o sles of he ocs sing he ecycle s (Schenel e l, 05; Cnnell e l, 06) n genel, i is consieble fo he sysem oeion in GSC o fce he nceinies in emn of single ye of ocs n qliy of single ye of se ocs collece fom me The following evios es: s e l (004), Fegson e l (009), Ksw n lozw (05) n Zioolos n Tgs (05) veifie how he nceinies in oc emn n he qliy of he se ocs ffece he oiml oeion n he exece ofis in GSC The incooion of he gme heoy ino sly chin cooinion in GSC hve been iscsse by gn n Sosic (008), Hong e l (05), Ghosh n Shh (05), Ksw n lozw (05) Those evios es menione bove eemine he oiml oeions in GSC, which mximize he exece ofis of eile, mnfce, n he whole sysem in he GSC This imlies h he bove es on consie he effec of vince of he inivil ofi on he oiml oeion in GSC n oe o solve his bove oblem, men-vince nlysis (Choi e l, 008; Chi n Choi, 06) is incooe ino he oiml ecision fo single ye of ocs o sell in single eio The moivion of his e is o incooe men-vince nlysis on he nceinies in oc emn n he collecble qniy of he se ocs ino he moeling n he heoeicl nlysis in GSC, n eemine he oiml oeion Conceely, his e iscsses is mngemen eging he nceinies in oc emn n collecble qniy of he se ocs occing in GSC s oeions n cles how wo nceinies s iss ffec he oiml oeion in GSC

2 wih eile (R) n mnfce (M) R ys n incenive fo collecion of he se ocs fom csomes n sells single ye of ocs in me ing single eio M oces n oe qniy of he ocs sing he ecyclble s wih cceble qliy levels n coves of he R s incenive s o he qniy of he ecycle s R fces he nceinies in he oc emn n he collecble qniy Men-vince nlysis is conce fo hee is ies eging wo nceinies: is nel ie, isvese ie, is-one ie The oiml ecisions fo he oc oe qniy, he sle ice, he mxim m collecion qniy, he ni collecion incenive n he lowe limi of qliy level e eemine ne he ecenlize GSC (GSC) n he inege GSC (GSC) GSC oimizes ech membe s iliy fncion, menwhile GSC oes he whole sysem s The nlysis nmeiclly illses how hee is ies ffec he oiml oeions in GSC The benefi of sly chin cooinion (SCC) oing sh Bgining solion o shif fom GC o GSC is iscsse The conibion of his e ovies he following mngeil insighs h (i) he oiml oeion in GSC shol be eemine s o is ies inoce ino no only he oc emn b lso he collecble qniy of he se ocs: is-nel ie which mximizes he exece ofis in GSC, is-vese ie n is-one ie which mximize he iliy fncion wih he execion n vince of ofis in GSC, (ii) sly chin cooinion shol be conce by ing blnce beween he exece ofis of R n M sing sh bgining solion MOEL ESCRPTOS Fis, he oeionl flow of GSC is iscsse GSC consiss of eile (R) n mnfce (M) The oeionl flow of he GSC consiss of he nsfe fom he collecion of single ye of se ocs hogh ecycling he se ocs ino single ye of ecycle s o sles of single ye of ocs oce fom boh he ecycle s n new s in single eio This e focses on single ye of ocs sch s consme eleconics (mobile hone, esonl come), semiconco, n eleconic comonen () R ys he ni collecion incenive o collec he se ocs fom consmes ne he mximm collecion qniy S of he se ocs () Unless he collecble qniy x of he se ocs excees S, ll he se ocs x e elivee o M he ni cos c R incs he ooniy loss cos cc e se ocs which excees S n e no collece R incs he ni shoge enly cos sw of he se ocs which oes no sisfy S (3) M isssembles he se ocs n insecs ll he ecyclble s wih he ni cos c fe h, M clssifies he ecyclble s ino qliy level (0 ) The lowe limi of qliy level (0 ) fo he ecyclble s is oimlly eemine M emnfces ll he ecyclble s wih qliy level moe hn M isoses ll he ecyclble s wih he lowe qliy level hn wih he ni cos c (4) s ew fo R s cooeion o M s ecycling civiy, M ys comension R() o R s collecion coss of he se ocs bse on he ni collecion incenive s o he qniy of he ecycle s (5) The ni collecion incenive n he oc oe qniy Q of single ye of ocs o M e oimlly eemine ne he nceinies in he collecble qniy n he oc emn R oes he oe qniy Q fom M (6) M oces he ocs he ni cos cm o sisfy he oe qniy Q fom R R oes he oe qniy Q of single ye of ocs fom M f he eqie qniy of s o oce Q is nsisfie wih he qniy of he ecycle s, M oces he eqie qniy of new s he ni cos cn fom n exenl slie (7) M sells he qniy Q of he ocs o R he ni wholesle ice w (8) R sells he ocs in me wih he ni sle ice ing single eio R incs he ni invenoy holing cos h of he nsol ocs, while R incs he ni shoge enly cos sc of he nsisfie oc emn ex, moel ssmions in GSC is shown ) The oc emn fom consmes x is ncein x is moele s x () is he exece mon of he oc emn n is monoone ecesing fncion in ems of ε is he iionl viion n follows he noml isibion 0, ) The collecble qniy x is ncein x is moele s x () is he exece mon of he collecble qniy n is monoone incesing fncion in ems of Fom he sec of he R s ofi, he fesible nge of is 0 U ε is he iionl viion n follows he noml isibion 0, 3) ε n ε e ineenen ech ohe 4) The ni of single ye of ecyclble s is exce fom he ni of single ye of se ocs M emnfces single ye of ocs sing single ye of ecyclble s wih cceble qliy levels 5) The vibiliy of qliy level of he ecyclble s is moele s obbilisic isibion wih he PF q () 6) The ni emnfcing cos c () of he ecyclble s wih he qliy level vies s o he qliy level (0 ) The lowe qliy level is, he highe he ni emnfce cos c () is Hee, 0 inices he wos qliy level of he ecyclble s, menwhile inices he bes qliy level of he ecyclble s Ths, c () is monoone ecesing fncion in ems of

3 oe h ech qliy of he ecycle s oce fom he ecyclble s is s goo s h of new s oce fom new meils 7) The ni wholesle ice w is clcle fom he ni ocemen cos cn of new s, he ni ocion cos cm of he ocs, n he ni mgin m fom wholesles 3 EXPECTTO VRCE OF PROFTS GSC Fom secion, he eile(r) s ofi consiss of he collecion cos of he se ocs fom consmes, he elivey cos of he se ocs o he mnfce (M), he ooniy loss cos of he se ocs which excees he mximm collecion qniy, he shoge enly cos of he se ocs which is nsisfie wih he mxim m collecion qniy, he comension evene of collecion of he se ocs, he oc sles, he ocemen cos he of ocs, he invenoy holing cos of he nsol ocs, n he shoge enly cos fo nsisfie oc emn in me Ting execions of he oc emn x n he collecble qniy of se ocs x, he R s exece ofi E[ ( Q,, S,, )] fo Q,, S, n cn be eive s R R,,,, c R q swes x cce x S E Q S c R q S wq h EQ x scex Q Hee, EQ x () inices he exece excess qniy of he ocs when Q x, n cn be eive s Q EQ x F () E x inices he exece shoge qniy of he ocs when Q x, n cn be eive s Q Ex Q Q F (3) Q x E S inices he exece excess qniy of he se ocs when S x, n cn be eive s Q EQ x F (4) x E S inices he exece shoge qniy of he se ocs when S x, n cn be eive s Ex S S G (5) Fom Eq (), vince of he R s ofi fo Q,, S, n cn be eive s V RQ,, S,, Q Q Q sc h F h s s h s F c c c c c Q h s F s V S S cc G S c c c G c c c c c S c G c V, (6) c R q() s (7) w Fom secion, he M s ofi consiss of he isssembly n insecion coss of he se ocs, he emnfcing cos of he ecyclble s, he isosl cos of n-ecycle s, he comension cos, he ocemen cos of new s, he ocion cos of he ocs, n he oc wholesles Ting execions of x n x, he M s exece ofi E[ ( Q,, S,, )] fo Q,, S, n cn be eive s M,,,, 0 0 n E M Q S c c q R q c q c q S n c c q R q c q c q E S x c Q c Q wq (8) n m Fom Eq (8), vince of he M s ofi fo Q,, S, n cn be eive s,,,, 0 n S S G V M Q S c c q R q c q c q S S G G (9) s he sm of boh membes exece ofis in Eqs () n (8), he exece ofi of he whole sysem (S) E[ S( Q,, S,, )] fo Q,, S, n is obine s E S Q,, S,,,,,,,,,, E Q S E Q S R M (0) Q c Q c Q m n h EQ x s Ex Q c S s E S x c E x S, () w c c c q c () c q c q 0 n Fom Eqs (), (8), () n (), vince of he S s ofi fo Q,, S, n cn be eive s

4 ,,,, Q h sc sc h sc V S Q S Q F Q s h F c Q c c h s F s V S sw cc cc sw cc S G S c s G c w w c c S s c G c V (3) 4 ME-VRCE LYSS OF PROFTS GSC FOR TWO UCERTTES Men-vince nlysis (Choi e l, 008; Li n Ci, 009) is conce fo inivil ofis in GSC wih he nceinies in he oc emn n he collecble qniy of he se ocs Conceely, by sing iliy fncions of eile (R), mnfce (M), n he whole sysem (S) in GSC, he is nlysis is conce fo hee is ies eging wo nceinies menione bove : is-nel ie (), is-vese ie (), n isone ie (P) The ie mes ecision wiho consieion of vince of ofi in GSC The ie, wih negive consieion of vince of ofi in GSC, hoes o sbilize he ofi The ie P, wih osiive consieion of vince of ofi in GSC, weighs hevily imovemen in chnces o genee lge ofi he hn sbiliy of he ofi Theefoe, iliy fncions of membe R,M,S in ie,, P fo Q,, S, n e efine s U membe Q,, S,,,, P, membe R,M,S E membe Q,, S,, V membe Q, V S,, (4) membe Hee,, enoes egee of is ie ccoingly, inices he is-nel ie (=), 0, 0 inices he is-vese ie (=), n 0, 0 inices he is-one ie (=P) 5 OPTML OPERTOS UER GSC n ecenlize GSC (GSC), he oiml ecision och fo he Scelbeg gme (gn n Sosic, 008) is oe This e egs eile (R) s he lee of he ecision-ming ne GSC n mnfce (M) s he followe of he ecision-ming of R ne GSC R eemines he oiml oe qniy Q,, P, he oiml sle ice, he oiml mximm collecion qniy S n he oiml ni collecion incenive so s o mximize he R s iliy fncion in Eq (4) in is ie,, P M eemines he oiml lowe limi of qliy level so s o mximize he M s iliy fncion in Eq (4) ne Q,, S n The ocees fo he oiml ecisions ( Q,, S,, ) ne GSC in ie,, P e shown heeinfe 5 Oiml Oeion in ie [Se ] The R s exece ofi in Eq () is he concve fncion in ems of Q ne eemine he ovisionl oe qniy Q ne s w sc Q F h sc (5) [Se ] Fom Eq (), Q ne e nffece by S, n Fin he oiml combinion of he oe qniy n he sle ice Q, o mximize he R s exece ofi in Eq () hogh nmeicl sech By chnging, sisfying coniions 0 n ( ) 0, Q n e sbsie ino Eq () ne S, n The oiml combinion Q, cn be eemine s Q, which mximizes he R s exece ofi E ( R Q ( ), S,, in Eq () ne S, n [Se 3] The R s exece ofi in Eq () is he concve fncion in ems of S ne n eemine he ovisionl mximm collecion qniy S, ne n s R q c c c S, G (6) R q c cc s w if he coniion R q c cc sw is sisfie [Se 4] The fis oe eivive of he M s exece ofi in Eq (8) in ems of ne Q,, S, n is E M Q,, S,, S S G q c R c cn Fom moel ssmion 6) in secion 3, c is monoone ecesing fncion in ems of eemine he ovisionl lowe limi of qliy level ne so s o sisfy he following coniion c R c cn 0 (7) sisfying Eq (7) is obine s Fom Eq (7), is ffece by [Se 5] S,, n e nffece by Q n Fin he oiml combinion of he ni collecion incenive, he mximm collecion qniy n he lowe limi of qliy level,, S o mximize he M s exece

5 ofi by chnging in Eq (8) hogh nmeicl sech By vying wihin he nge whee 0,, U S,, n e sbsie ino Eq () ne Q n The oiml combinion,,, S cn be eemine s,,, S which mximizes he R s exece ofi E R,, S, Q, in Eq () ne Q n 5 Oiml Oeions in ies n P The oiml ecision ocees ne GSC in ies n P e ovie s follows: [Se ] The oiml ecisions fo Q n in ies n P e nffece by S, n Fin he oiml combinions of he oe qniy n he sle ice Q,, P P Q, so s o mximize he R s iliy fncion in Eq (4) when 0 in ie n in ie P by nmeicl clclion n he nmeicl sech [Se ] The oiml ecisions fo S, n in ies n P e nffece by Q n Fin he oiml combinion of he ni collecion incenive, he mximm collecion qniy n he lowe limi of qliy level S,,, S P, P, P when 0 in ie n in ie P by nmeicl clclion n nmeicl sech Conceely, fis, fin n eco ne ech S, n so s o mximize he M s iliy fncion ex, fin he S n fom ecoe combinions so s o mximize he R s iliy fncion 6 OPTML OPERTO UER GSC n inege GSC (GSC), he oiml ecisions fo Q,, S, n e me so s o mximize he iliy fncion of he whole sysem(s) in Eq (4) in is ie,, P The ocees fo he oiml ecisions ( Q,, S,, ) ne GSC in ie e shown below 6 Oiml Oeion in Ris ie [Se ] The S s exece ofi in Eqs () n () is he concve fncion in ems of Q ne eemine he ovisionl oe qniy Q ne s cm cn sc Q F h sc (8) [Se ] Fom Eqs () n (), Q ne e nffece by S, n Fin he oiml combinion of oe he qniy n he sle ice Q, o mximize he S s exece ofi in Eqs () n () hogh nmeicl sech By chnging, sisfying coniions 0 n ( ) 0, Q n e sbsie ino Eqs () n () ne S, n The oiml combinion Q, cn be eemine s Q, which mximizes he S s exece ofi E S ( Q ( ), S,, ne S, n [Se 3] The S s exece ofi in Eqs () n () is he concve fncion in ems of S ne n eemine he ovisionl mximm collecion qniy S, ne n s, 3 3 S G s, (9) w 3 c c( ) q( ) if he coniion c q( ) c c q( ) c 0 n c (0) c q ( ) c c ( ) q ( ) c q ( ) c c s n 0 c w is sisfie [Se 4] The fis oe eivive of he S s exece ofi Eqs () n () fo ne Q,, S, n is E S Q,, S,, S S G q c c cn s wih GSC, eemine he oiml lowe limi of qliy level so s o sisfy he following coniion c c cn 0 () sisfying Eq () is obine s [Se 5] S,, n e nffece by Q n Fin he oiml combinion of he ni collecion incenive n he mximm collecion qniy, S o mximize he S s exece ofi by chnging in Eqs () n () by nmeicl sech By vying wihin he nge whee 0 U, n S e sbsie ino Eqs () n () ne Q, n The oiml combinion, S cn be eemine s, S which mximizes he S s exece ofi E R, S Q,, ne Q, n 6 Oiml Oeion in ies n P The oiml ecision ocees ne GSC in ies n P e ovie s follows: [Se ] The oiml ecisions fo Q n in ies n P e nffece by S, n Fin he oiml combinions of he oe qniy n he sle ice Q,, P P Q, so s o mximize he S s iliy fncion in Eq (4) when 0 in ie n in ie P by nmeicl clclion n he nmeicl sech [Se ] The oiml ecisions fo S, n in ies n P e nffece by Q n Fin he oiml combinion of he ni collecion incenive, he mximm collecion qniy n he lowe limi of qliy level S,,, S P, P, P so s o mximize he S s iliy fncion in Eq (4) when 0 in ie n in ie P by nmeicl clclion n he nmeicl sech

6 7 SUPPLY CH COORTO s sly chin cooinion (SCC) o gnee he ofi imovemen fo ech membe ne GSC, he effec of ofi shing och on he exece ofi of ech membe fo he oiml ecision s o ie,, P ne GSC is iscsse n his e, he ni wholesle ice w n comension e se oc R () e cooine beween boh membes s o ie ne GSC w n R() e se s w wm c c m n R n m The egee α of comension n he mgin m fo wholesle e oc e cooine s α n m by oing he sh bgining solions (gn n Sosic, 008) s o ie ne GSC w n R () e clcle by sbsiing α n m ino w n R () α n m e eemine so s o mximize Eq () sisfying he consine coniions in Eqs (3) n (4): Mx T, m { E [ (, m Q,, S,, )] R E [ (, m Q,, S,, )]} R { E [ (, m Q,, S,, )] M E [ M (, m Q,, S,, )]}, () sbec o [,,,,, E m Q S ] R E R m Q S M E M m Q S [,,,,, ] 0, (3) E [, m Q,, S,, ] [,,,,, ] 0 (4) Eqs (3) n (4) e he consin coniions o gnee h he exece ofi of ech membe in ie ne GSC wih SCC is lwys highe hn h ne GSC 8 EMERCL EXPERMETS The nlysis nmeiclly illses how he is ie ffecs he oiml ecisions of he oe qniy, he sle ice, he mximm collecion qniy of he se ocs, he ni collecion incenive n he lowe limi of qliy level ne GSC n GSC The oiml oeion n he exece ofis ne SGC e come wih hose ne GSC Sly chin cooinion o enble he shif of he oiml oeion ne GSC fom h ne GSC is iscsse The ni wholesle ice n he comension e cooine beween eile (R) n mnfce (M) ne GSC, by oing sh Bgining solion 8 meicl Exmles The nmeicl exmles e ovie s sc 75, h 5, cc, sw, c, c, c, cn 35, cm, m 5 () n e se n 300 () n e se n 30 The ni emnfcing cos of he ecyclble s wih qliy level is se s c ( ) 40( 09 ) 07 is se fom he sec of he ofis of R n M The qliy isibion of ecycle s wih 0 is moele by sing he be isibion B(, b ) wih mees n b Hee, he cse B (,) whee ech qliy of he ecyclble s is nifomly isibe e se When mees n b vy, viey of qliy isibion of 0 is exesse ecycle s wih 8 Resls of meicl nlysis 8 Effec of Ris ie on he Oiml Oeions n he Exece Pofis ne GSC n GSC The effec of he egee of is ie, on he oiml ecisions fo he oe qniy, he sle ice, he mximm collecion qniy, he ni collecion incenive, he lowe limi of qliy level n he exece ofis ne GSC n GSC e iscsse Tble shows he effec of on ecision vibles ne GSC n GSC Tble shows he effec of on he exece ofis of R, M n he whole sysem(s) ne GSC n GSC Fom Tble, he following esls cn be seen The highe is, he moe oiml oe qniies e ne GSC n GSC ccoingly, 0 inices h ecision-me wih ie ens o ecese he oiml oe qniy, while 0 inices h she wih ie P ens o incese i ne GSC n GSC The oiml sle ices ne GSC n GSC few chnge eening fo The highe is, he moe oiml mximm collecion qniies ne GSC, b h ne GSC e no ffece by The highe is, he less oiml ni collecion incenives ne GSC, b h ne GSC e few ffece by few ffecs he oiml lowe limi of qliy level Fom Tble, he following esls cn be seen The highe is, he exece ofis of R ne GSC, M n S ne GSC n GSC en o ecese The exece ofis of R ne GSC n GSC, n S 6 ne GSC e qie low when 50 0 Theefoe, i is necessy fo R ne GSC n GSC, n olicy me of S ne GSC wih ie P o esime ceflly he egee of is ie 8 Comisons of Oiml Oeions n Exece Pofis ne GSC n GSC The oiml ecisions fo he oe qniy, he sle ice, he mximm collecion qniy, he ni collecion incenive, n he lowe limi of qliy level ne GSC e come

7 Tble : Effec of he egee of is ie on ecision vibles Ris egee of is ie Q S ie (Q,) (S,,) GSC GSC GSC GSC GSC GSC GSC GSC GSC GSC P Tble : Effec of he egee of is ie on exece ofis Ris egee of is ie Reile Mnfce Whole Sysem ie (Q,) (S,,) GSC GSC GSC GSC GSC GSC P Ris ie Tble 3: Effec of sly chin cooinion on he exece ofis ne GSC egee of is ie R s exece ofi M s exece ofi SCC (Q,) (S,,) GSC GSC (SCC) GSC GSC (SCC) m α (+66) (+6) (+597) (+607) (+508) (+5) P (+456) (+466) wih hose ne GSC (i) The oiml ecisions fo oe qniy n sle ice Fom Tble, i is veifie h he oiml oe qniy ne GSC ens o be lge hn h ne GSC Thee e few iffeences of he mon of chnge fo, beween GSC n GSC The oiml sle ice ne GSC is highe hn h ne GSC The oiml sle ice few chnge fo (ii) The oiml ecisions fo mximm collecion qniy, ni collecion incenive n lowe limi of qliy level Fom Tble, he following esls cn be seen: The oiml mximm collecion qniy ne GSC is lge hn h ne GSC in ny, Theefoe, he shif o GSC omoes he collecing civiy The oiml ni collecion incenive ne GSC is highe hn h ne GSC Theefoe, he shif o GSC omoes he collecing civiy The oiml lowe limi of qliy level ne GSC is lowe hn h ne GSC in ny mens incemen in emnfcing io Theefoe, he shif o GSC omoes he emnfcing civiy Moeove, he oiml lowe limi of qliy level ne GSC is nffece by, (iii) The exece ofis of R, M, n S Fom Tble, i cn be seen he S s exece ofi ne GSC is highe hn h ne GSC exce fo n 005 When 50 0 n 005, he S s exece ofi ne GSC is lowe hn h ne GSC e o mximizion of he S s iliy fncion n his cse, he shif fom he oiml oeion ne GSC o h ne GSC sholn be conce lso, ne he siion whee he S s exece ofi ne GSC is highe hn h ne GSC, even if he M s exece ofi ne GSC is highe hn h ne GSC, he R s exece ofi ne GSC is lowe o slighly highe hn h ne GSC Une he siion, sly chin cooinion is incooe ino GSC o gnee he incese of he exece ofi of R n M ne GSC 83 Effec of Sly Chin Cooinion on he Exece Pofis ne GSC ncooing sly chin cooinion (SCC) ino GSC, he ni wholesle ice n he egee of comension fo he ni collecion incenive e se s sh bgining

8 solions by Eqs ()- (4) in Secion 7 Tble 3 shows he effec of SCC on he exece ofis ne GSC Fom Tble 3, i cn be seen h SCC cn gnee h he exece ofis of R n M ne GSC e highe hn hose ne GSC when he S s exece ofi ne GSC is highe hn h ne GSC Theefoe, i is veifie h he incooion of SCC ino he oiml oeion ne GSC enbles o shif fom GSC o GSC, when S s exece ofi ne GSC is highe hn h ne GSC 9 COCLUSOS This e iscsse is mngemen eging he nceinies in oc emn n collecble qniy of he se ocs occing in geen sly chin(gsc) s oeions n clee how wo nceinies s iss ffece he oiml oeion in GSC wih eile(r) n mnfce(m) R i n incenive fo collecion of he se ocs fom csomes n sol single ye of ocs in me ing single eio M oce n oe qniy of he ocs sing he ecyclble s wih cceble qliy levels n covee of R s incenive s o he qniy of he ecycle s R fce he nceinies in he oc emn n he collecble qniy Men-vince nlysis ws conce fo hee is ies eging wo nceinies: is nel ie, is-vese ie, isone ie The oiml ecisions fo he oe qniy, he sle ice, he mximm collecion qniy, he ni collecion incenive n he lowe limi of qliy level wee eemine ne he ecenlize GSC(GSC) n he inege GSC(GSC) GSC oimize ech membe s iliy fncion, menwhile GSC i he whole sysem s The nlysis nmeiclly illse how hee is ies ffece he oiml oeions in GSC The benefi of sly chin cooinion oing sh Bgining solion o shif fom GC o GSC ws iscsse Resls of heoeicl nlysis n nmeicl nlysis in his e veifie he following mngeil insighs: () he oiml oeion in GSC shol be eemine s o hee is ies inoce ino no only he oc emn b lso he collecble qniy of he se ocs: is-nel ie which mximizes he exece ofis in GSC, is-vese ie n is-one ie which mximize he iliy fncion wih he execion n vince of ofis in GSC, () sly chin cooinion shol be conce by ing blnce beween he exece ofis of R n M sing sh bgining solion () he oiml ecision fo ni collecion incenive n lowe limi of qliy level of he se ocs is nffece by is ies fo he nceiny in oc emn when he nceiny in oc emn is ineenen of h in qliy of he se ocs s fe eseches, i will be necessy o incooe he following oics ino GSC moel in his e: ing new fmewos of GSC o encoge he collecion n he emnfcing of se ocs, The siion whee he mlile yes of he se ocs n he ocs e hnle in he GSC CKOWLEGMET This esech hs been soe by he Gn-in-i fo Scienific Resech C o fom he Jn Sociey fo he Pomoion of Science REFERECES s,, Boyci, T, n Vee, V (004) The effec of cegoizing ene ocs in emnfcing, E Tnscions, 36, Cnnell, S, Bccolei, M, Fminn, JM (06) Closeloo sly chins: Wh evese logisics fcos inflence efomnce?, nenionl Jonl of Pocion Economics, 75, Choi, T-M, Li,, Yn, H, n Chi, C-H (008) Chnnel Cooinion in Sly Chin wih gens Hving Men- Vince Obecives, Omeg, 36, Chi, C-H, Choi, T-M (06) Sly chin is nlysis wih men-vince moels: echnicl eview, nnls of Oeions Resech, 40, Fegson, M, Gie, V, Koc, E, n Soz, G C (009) The vle of qliy ging in emnfcing, Pocion n Oeions Mngemen, 8, Ghosh, n Shh, J (05) Sly Chin nlysis ne Geen Sensiive Consme emn n Cos Shing Conc, nenionl Jonl of Pocion Economics, 64, Hong, X, X, L,, P, Wng, W (05) Join veising, icing n collecion ecisions in close-loo sly chin, nenionl Jonl of Pocion Economics, 67, - gn, M, & Sosic, G (008) Gme-heoeic nlysis of cooeion mong sly chin gens: eview n exensions, Eoen Jonl of Oeionl Resech, 87, Ksw, E n lozw, S (05) Oiml Oeion fo Geen Sly Chin wih Qliy of Recyclble Ps n Conc fo Recycling civiy, nsil Engineeing n Mngemen Sysems, 4, Schenel, M, Cniëls, MCJ, Kie, H n Vn e Ln, E (05) Unesning Vle Ceion in Close Loo Sly Chins - Ps Finings n Fe iecions, Jonl of Mnfcing Sysems, 37, Zioolos, C, Tgs, G (05) Revese sly chins: Effecs of collecion newo n ens clssificion on ofibiliy, Eoen Jonl of Oeionl Resech, 46,

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