A research on the supply chain buyback decision based on the consumer surplus

Return of goods has a negative impact on the supplier's and the distributor's profit. To alleviate this impact, the supplier and the distributor take the centralized decision and share the profit at a certain rate between them. Through comparing the supply chain's profit and the consumer surplus without goods return under decentralized decision with those under centralized decision with goods return, this research paper identifies the range of the return rate that can make both the consumer and the supply chain obtain more benefits under centralized decision-making than under decentralized decision-making.