Examining the Chinese mobile phone industry in the reverse supply chains

Abstract

This research aims to develop a simulation model for the Chinese mobile phone industry's reverse supply chain and analyses the effects of the trade-in program and the government subsidy on the system’s behaviour. We adopt a system dynamics (SD) modelling approach, an excellent tool for studying dynamic processes in which new decisions have to be made, and new policies appear. Key factors and their relationships are identified through literature review and observation. The research outcomes conclude that the trade-in program and the government subsidy have different effects on the system behaviour when collectors compete by taking different acquisition and recycling strategies. The former has a significantly positive impact on the formal recycling industry's economic performance, while the latter has a critical influence on alleviating the problem of uncontrollable disposal. The original primary contribution is to offer an observation and a comparison regarding the possible effects of the trade-in program and government subsidy on a reverse supply chain in the mobile phone industry when a competitive collection is involved.