Research On Game Model And Application Of Recycling And Pricing Strategy In A Closed-loop Supply Chain

The rapid development of market economy forcing manufacturer continues tointroduce new products. With the continuous growth of individual demand of people,the products life cycle become more and more short. And the renewal speed ofproducts becomes more and more quickly, vast products have been out which still nothave not been to life end, which creates a tremendous waste of resources, also bringsgreat harm for people living environment and life. Therefore, the closed-loopeconomic growth mode of resources-products-waste products-remanufacturingproducts appears which increases resource recycling and reduces enterprise costs.The mode meets the strategic objective of sustainable development which realizes thecoordination among economic development and utilization of resources,environmental protection.In this paper, based on the research literature review about the closed-loop supplychain recovery channels and pricing strategy etc, by using the game theory and thechaotic dynamics theory, complexity theory for support, it constructs prediction modelof the recovery waste products, and studies the recycling management of enterprisesin the closed-loop supply chain. Through Numerical simulation by Matlab, it analyzesthe complex dynamic evolution process. The main content and innovation points ofthis paper are as follows.(1) It extends the research methods about recycling channel and enterprisescoordination of the closed-loop supply chain. The research method of literature aboutclosed-loop supply chain is mostly game theory. The chaos dynamics theory,complexity theory and the game theory are comprehensive applied in this paper.(2) Enrich the research content. It constructs three kind of mathematics modeaccording to different recycling channel. Previous studies are mainly retailersrecycling mode in the close-loop supply chain which included a manufacturer and aretailer. This paper constructs three models as follows. Firstly, competition recyclingcoordination model which includes two equal manufacturers. Secondly, cooperative aswell as competitive coordination model which includes a manufacturer and tworecovery businesses (upstream-downstream enterprise). Lastly, differential pricinggame model which includes a manufacturer and a retailer. (3) According to the different channels, it introduces adjustment parameters of usedproducts recycling price and remanufacturing products sale price. Through numericalsimulation, it researches complex dynamics behavior of chaos system which causedby changes of price adjustment speed. The faster the adjustment is, the earlier intochaos state. These conclusions provide decision basis of determining the optimalpricing in every stage for manufacturers to realizing revenue maximization.(4) According to the different channels, it constructs Nash equilibrium andStackelberg game model based on the decentralized control decisions, andcollaboration decision model based on the decentralized control. It analyzes onstability and complexity and the influence of main parameters of the models, anddraws change trend of recycling price and sale price in different model.