Abstract
Taking an environment-friendly green closed-loop supply chain as the research object, this work established a two-stage closed-loop supply chain game model. Considering the influence of the environmental protection input on the whole supply chain, there are different decisions among the participants in the supply chain, and the different choices will have impacts on the benefits of the whole supply chain when manufacturers select a closed-loop supply chain model of third-party recycling. Hence, this work compared and analyzed the impact of centralized decision-making and decentralized decision-making on the returns and pricing strategies of each participant. Finally, an optimized cooperative mechanism decision model considering a cost profit sharing contract was further designed. The model is conducive to obtaining the maximum profit value in centralized decision-making and avoids the negative impact of a “double marginal effect” on supply chain income in decentralized decision-making, and finally, improves the overall coordination and profit of a green closed-loop supply chain. The numerical examples are conducted to verify the effectiveness and practicality of the proposed models. This work provides a helpful decision support and guidance for enterprises and the government on the used products recycling decisions to better manage the green closed-loop supply chain.
Highlights
Because of the progress of science and technology driving the rapid development of the economy, the renewal of consumer products, especially consumer electronics, is getting faster and faster, and more waste products are eliminated and abandoned, which has produced a great burden on the environment [1,2]
Through constructing a two-channel closed-loop supply chain decision model in which manufacturers sell online, retailers carry out traditional sales and the third party is responsible for recycling waste products, they analyzed and compared the income situation of a closed-loop supply chain under centralized decision-making and decentralized decision-making, and they further put forward an income and cost sharing mechanism to ensure that the supply can achieve the overall coordination
The above numerical results show that the centralized decision-making model is more beneficial to consumers, and it can increase the ratio of recycled waste products, which is more conducive to improving the competitiveness of remanufactured products, enhancing the consumer perception of the remanufactured product, and promoting environmental protection and the development of the circular green closed-loop supply chain
Summary
Because of the progress of science and technology driving the rapid development of the economy, the renewal of consumer products, especially consumer electronics, is getting faster and faster, and more waste products are eliminated and abandoned, which has produced a great burden on the environment [1,2]. The green closed-looped supply chain coordination mechanism is one of the most important issues, which has received great attention in both the forward and reverse flows of supply chains. Plenty of existing literature has studied the coordination mechanism of various closed-loop supply chains, the issue that the factors of environmental protection investment (such as advertising and other environmental promotion, etc.) can significantly affect the recycling ratio of the used products, and further influence the overall coordination and profit of the supply chain, should get enough attention. This paper aims at designing an optimized coordination decision model taking environmental protection factors into account, in order to improve the used products recycling ratio, so as to enhance the overall level of coordination and the profits of a green closed-loop supply chain.
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