Abstract
According to an e-commerce closed-loop supply chain dominated by manufacturers, which is composed of manufacturers and e-commerce platforms, divided into three different recovery mode: manufacturers recycling mode alone, electric business platform recycling mode alone, and manufacturers and electric business platform mixed mode, using the game theory to solve, compares three closed-loop supply chains found: (1)When the recycling price sensitivity is high, the optimal strategy of the manufacturer is the manufacturers recycling mode alone; when the price sensitivity of recycling is low, the manufacturer’s best strategy is the independent recycling mode of the e-commerce platform. No matter how sensitive the recycling price is, the profits of the manufacturer under the mixed recycling mode are always lower than those under the other two recycling modes. (2) When the recycling price sensitivity is high, the optimal strategy of the electric business platform is the mixed recycling mode; when the price sensitivity of recycling is low, the optimal solution of the electric business platform is the independent recycling mode of the electric business platform. (3) When the recovery price sensitivity is low, the best strategy of both is the separate recycling mode of the electric business platform.
Highlights
In recent years, people's awareness of environmental protection has been increasing and sustainable development has been deeply implemented
The main parameters of this paper are set as follows: P : Unit recovery price of waste products recycled by the manufacturer; P : Unit recycling price of waste products recycled on e-commerce platform; C : Manufacturer's unit cost of remanufacturing using recycled products; P: The unit selling price of remanufactured products; β: Sensitivity of consumers to product recycling price; ρ: Unit commission given by the manufacturer to the e-commerce platform for recovery; π and π : represent the profits of the manufacturer and the e-commerce platform respectively, and the superscript M, E, and ME represent the three recycling modes respectively
This paper aimed at a consisting of manufacturers and electric business platform, dominated by manufacturers of EC-CLSC, through the study of three different recovery mode: manufacturers recycling mode alone, electric business platform recycling mode alone, and manufacturers and mixed electric business platform model
Summary
People's awareness of environmental protection has been increasing and sustainable development has been deeply implemented. The e-commerce platform and the closed-loop supply chain system are combined to form the ecommerce closed-loop supply chain(EC-CLSC) In this system, the e-commerce platform replaces the third-party recyclers and retailers, recycling the waste products and selling the secondary products. Xiang and Xu [12] studied the CLSC dynamic involving Internet service platforms, mainly discussing how supply chain members choose the optimal cooperation model to achieve Pareto improvement. Hong et al [18] established three models in the CLSC in which manufacturers, retailers, and third-party recyclers are respectively responsible for recycling, and studied the coordination strategy of the system. Recycled waste products through the above three channels are handed over to manufacturers for processing and remanufacturing, and remanufactured products are sold through e-commerce platforms. The main parameters of this paper are set as follows: P : Unit recovery price of waste products recycled by the manufacturer; P : Unit recycling price of waste products recycled on e-commerce platform; C : Manufacturer's unit cost of remanufacturing using recycled products; P: The unit selling price of remanufactured products; β: Sensitivity of consumers to product recycling price; ρ: Unit commission given by the manufacturer to the e-commerce platform for recovery; π and π : represent the profits of the manufacturer and the e-commerce platform respectively, and the superscript M, E, and ME represent the three recycling modes respectively
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