Dynamic decision in a retailer-led closed-loop supply chain under altruistic preference

Abstract

The dynamic decision-making strategies on the altruistic behavior of a manufacturer, a retailer, a third-party recycler and tripartite in the closed-loop supply chain (CLSC) are researched. We respectively considered four altruistic preference models of differential game and Bellman theory that contrasted and analysed the wholesale price and transfer payment price strategies of the manufacturer, the unit profit of products strategy of the leader retailer, the recycling price and the investment in recycling efforts strategies of the third-party recycler and the recycling rate of used products and the value functions of members. The numerical analysis further analyses the rule of the time evolution of CLSC performance under four altruistic preference models. In this paper we can see that: altruistic preference has an optimistic influence to our society; the manufacturer's altruistic preference can effectively lessen the duple marginal influence on the CLSC while increase the rest of consumers; in contrast, tripartites’ altruistic preference model has the optimal outcome of the CLSC, which can bring about both economic and environmental benefits.