Abstract
To face the reality of resources exhaustion, the significance of recycling and remanufacturing in the closed-loop chain has become quite evident. This paper constructs a competitive recycling and remanufacturing model of the closed-loop supply chain through a case study of Midea Corp. and Gree Corp. and explores the impact of two recycling modes on total revenue of the supply chain and market share. The simulation results show that the total revenue of the supply chain will benefit from the increasing coverage points by the third party and the increasing environmental awareness of certain regions. The retailers show more enthusiasm of recycling through certain amendment of the contract between manufacturers and retailers. The time of payment could be shortened in closed loop. Moreover, the improvement of recycling mechanism of the retailers can enlarge the share of supply chain market. Guiding role of the proposed model and the simulation results played in establishing a better supply chain mode is presented.
Highlights
The research field of forward supply chain logistics has been widely established that concerns the economic benefits growth, the improvement of the service network, and reduction of the logistics cost
The whole logistics process evolves into a circular structure, which is named as closed-loop supply chain
The effects of two modes on the total revenue of the supply chains and market share are simulated by the method of system dynamics
Summary
The research field of forward supply chain logistics has been widely established that concerns the economic benefits growth, the improvement of the service network, and reduction of the logistics cost. In order to solve the problem, game theory was used to study the pricing strategy of the recycling discarded products based on the reverse supply chain system formed by single manufacturer and retailer. Yang et al [27] put forward a universal model of closed-loop supply chain network, which was made up of raw material suppliers, manufacturers, retailers, consumers, and the recycling center They used variation inequality to optimize the network equilibrium and studied the influence of some parameters on the order of magnitude of network equilibrium. The improved model about recycling mode was constructed to solve problems stemming from pollution and unconscious use of natural resources Their researches involve the optimization of internal supply chain, leaving the contrast of several closed-loop supply chains out of consideration. This paper simulates the decision-making of two remanufacturing and recycling modes, discusses the influence of model parameters on their decision, and makes a contrast of profits and market share to provide basis for choosing the mode of the supply chain
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
