Optimizing strategies for e-waste supply chains under four operation scenarios

Abstract

Online recycling has become an increasingly popular research hotspot. However, few studies have focused on its potential service functions such as online promotion and offline recycling. In this study, considering such service functions, four models, namely, the manufacturer recycling channel (Model A), recycler recycling channel (Model B), online channel recycling (Model C) and manufacturer's self-built platform + recycling channel (Model D), are established, and derived the corresponding profit functions of supply chain members. Game theory was utilized to optimize service quality control strategies and supply chain member profits within the different models. Using numerical simulation, we examined the influence of both the upper recycling incentive limit and market demand on the optimal recycling channel strategies and profits. When the upper limit of the recovery incentive amount λ∈(0,3), the actual price and service quality to consumers under the manufacturer's self-built platform + recycling channel (Model D) are better than other channels, and the optimal manufacturer and online platform profits initially increased and then decreased with increases in the recycling incentive upper limit. We also found that the optimal recycler profit increased as the upper limit of the recycling incentive increased, and that optimal supply chain member profits increased when market size D0∈(0,100).