Abstract
Considering the reverse logistics system composed of two manufacturers and two recyclers under the cross-competitive take-back mode, which is influenced by multiple factors (industry competition, economies of scale, government subsidies, remanufacturing rate, etc.), a model for remanufacturing reverse logistics system based on Stackelberg game is established. Then, the Nash equilibrium solution of decision variables is solved to obtain the best profit of all participants under the cross-competitive take-back mode. Furthermore, the parameter constraint analysis is carried out, and the monopolistic take-back mode is introduced for comparative analysis. Then, the sensitivity analysis of the model is carried out. At last, a case analysis is carried out based on the current situation of waste electrical and electronic equipment (WEEE) recycling in China. The results show that the cross-competitive take-back mode is more advantageous to all participants in the reverse logistics system than the monopolistic take-back mode. Recyclers should actively sign contracts with multiple manufacturers to recycle waste products, making full use of the advantages of cross-competitive take-back mode to maximize the profits of all participants, so as to encourage them to recycle waste products and achieve sustainable development.
Highlights
The rapid development of science and technology, significant improvement of living standards and increasingly changing consumption concept make people’s demand for products more diversified and personalized, especially electronic products
According to Apple’s annual environmental report released on April 15, 2016, more than 600,000 pounds of steel, aluminum and other metals were recycled from waste products for the remanufacturing of new products, which saved resources and achieved the goal of sustainable development, and saved nearly 40 million dollars of production costs for Apple [1]
It can be seen that the reverse logistics system can achieve both economic and social benefits
Summary
The rapid development of science and technology, significant improvement of living standards and increasingly changing consumption concept make people’s demand for products more diversified and personalized, especially electronic products. Few researchers considered a reverse logistics system with multiple manufacturers and recyclers when they are modeling. Few researchers established the game among participants of the same level, such as the game among different manufacturers or the game among different recyclers. Even so, they either failed to add the remanufacturing factor of resource reuse or researched the reverse logistic system under the circumstance when the recycling amount is complete symmetry. This study aims to fill the above gap in the current literature by considering a reverse logistics system composed of two manufacturers and two recyclers, where the game for pricing decision is conducted among participants of the same level and different levels, respectively.
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