How to optimize retailers’ recovery strategies for electronic waste

Abstract

Abstract Electronic waste leads to a waste of resources and is a source of environmental pollution. The effective recovery of electronic waste is an urgent sustainability challenge. From the perspective of retailers, this paper constructs a retail sales strategy model under three strategies: a cash incentive, price preference incentive, and price discount incentive. By comparing the relationships among retailer benefits, incentive utility and incentive capital investment under these three incentive strategies, the model determines the optimal incentive strategies. This research shows: (1) When the incentive utility value is below the cross point, the price discount incentive strategy could earn a retailer the maximum profit. When the incentive utility value increases up to the cross point, the cash incentive strategy could earn a retailer the maximum profit; (2) The price discount incentive strategy is the optimal choice for retailers, and retailers can obtain the largest net profit at the same incentive cost; (3) The cash incentive strategy is less attractive because it creates biggest variability in net profit.