Recycling Channel Selection Decision of Closed - loop Supply Chain Considering Capital Constraint

Abstract

This paper studies a closed-loop supply chain consisting of a manufacturer, a retailer and a recycler and analyzes the manufacturer's optimal recycling selection strategy in the context of financial constraint on third-party recycler. In this paper, seven Stackelberg models are constructed, which include retailer alone recycling, third-party recycler alone recycling and "retailer + third party" competition recycling. The influences of bank interest rate, equity financing ratio and recycling competition coefficient on the selection of recycling channels are analyzed. Research shows that:(1)When the manufacturer recycles through a single channel, only the third-party recycler adopts the equity financing strategy and the proportion of equity financing is high. Otherwise, the retailer is selected for recycling.(2)When the manufacturer considers the dual-channel competitive recycling, the manufacturer's profit is negatively correlated with the competition coefficient. However, the profit of the manufacturer under three financing strategies can be higher than that of the single channel recovery within a certain threshold of recovery competition coefficient.(3)The profit of the manufacturer under the three financing strategies is not affected by the competition of recovery channels, and is only related to the proportion of equity financing. Under certain conditions, there is a recycling mode that makes manufacturer and retailer achieve "win-win" situation.