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In order to solve the coordination problem of a dual-channel closed-loop supply chain with a manufacturer, a retailer, and a third-party, the dual-channel closed-loop supply chain model was established based on game theory. The optimal pricing strategies and the optimal supply chain members' profits of the dual-channel closed-loop supply chain were studied under both the decentralized decision-making model and the centralized decision-making model. The results showed that the system profit in the decentralized dual-channel closed-loop supply chain is less than that in the centralized dual-channel closed-loop supply chain. Therefore, a modified two-part tariff contract was presented to coordinate the dual-channel closed-loop supply chain. © 2014 WIT Press.
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