Uncertain pricing decision problem in closed-loop supply chain with risk-averse retailer

This paper considers a pricing and remanufacturing problem in closed-loop supply chain which includes one dominant manufacturer and one retailer under uncertain environment. The remanufacturing cost, market demand, and collection cost are characterized as uncertain variables. The firms’ optimal strategies are obtained by uncertainty-theory-based and game-theory-based models. Besides, the impacts of the risk sensitivity on the performances of the closed-loop supply chain members are given by the comparison of different degrees of the retailer’s risk aversion and numerical studies. It is found that only the manufacturer makes more profits when the retailer is more risk sensitive but this condition in the closed-loop supply chain still leads to better performance of the total system.