Research On Closed-loop Supply Chain Network Equilibrium From The Perspective Of Behavior

In modern society,great changes of the social environment and economic environment faced by enterprises have taken place.Outstanding performance is:competition in enterprise is more intense;the strategy of sustainable development has been implemented;waste products are recycled and then re-manufactured;making decisions in a horizontal planning period of time and other aspects of the new situation.How to help enterprises to carry out decisions in the complex decision-making environment is an important issue to be solved.The supply chain is composed of members of various types,including the members of the same class,such as manufacturers producing the similar products,existing fierce competition;retailers engaged in the wholesale and sales,existing competition as well;and the supply chain upstream and downstream between the trading business,also need to be coordinated in business.Meanwhile,the demand faced by the retailers in supply chain is often random.In the case of random uncertainties,the retailers typically show the feature of loss aversion behavior.We build the model considering the characteristics of the behavior feature in this paper,and analyze the effect of the feature on the members of the supply chain network.In addition,some parameters of the actual supply chain or the external environment usually change,so the supply chain is a dynamic system with a hierarchical network structure and evolves with time.In general,according to the function of the members in the supply chain in the network,it can be divided into the manufacturer layer,retailer layer,market demand layer and recyclers in closed-loop supply chain in the network structure(which can be undertaken by the manufacturer or retailer).According to the members of the supply chain network in the decision-making time period,the decision time is divided into several discrete decision planning period.The internal supply chain network status won't change in each planning period,whereas,the demand characteristics in different demand market,characteristic of members,or technical conditions of the manufacturers in the supply chain network,might change between different periods.In this paper,we study the supply chain network equilibrium problem,and the static and dynamic cases are considered in the closed-loop supply chain network,and the behavior characteristics of the decision makers are mainly considered.With the Variational Inequalities and complementary theory,we focus on the decision makers in the face of uncertain income loss aversion character and the value of the reference point,the loss probability aversion and the case of retailers engaged in remanufacturing.The objective function of utility maximization or profit maximization of all kinds of decision makers of the supply chain network in the different network structure are depicted;the optimal behavior and equilibrium conditions are also depicted;then the equilibrium model of the whole supply chain network are established.The modified projection contraction algorithm is used to solve the variational inequality model.The concave of the profit function or utility function is also verified,and the existence and uniqueness of the optimal solution of the model are proved.According to the model,the correctness of the results is verified by an example,and some valuable management implications areobtained.Firstly,the optimal order quantity of the loss-aversion retailer is lower than that of the risk neutral retailer,and the optimal order quantity is inversely proportional to the loss-aversion coefficient,and the retailer's optimal order quantity is proportional to the shortage cost of the retailer.Secondly,the greater the retailer optimistic coefficient is,the greater the value of the reference point is,and when the balance of order quantity reduces,manufacturers' profit will also reduce.Thirdly,the manufacturer's profit will increase with the increase of the degree of attention of maximum profit of retailers;the manufacturer's profit will reduce with the increase of the maximum loss degree of attention;the manufacturer's profit will reduce with the increase of the loss probability.Fourthly,when the retailer's used-product conversion rate is high,the proportion of retailers engaged in remanufacturing business is higher,even only retailers carry out remanufacturing business,which is beneficial to the whole supply chain network;whereas researchers need to design appropriate profit allocation mechanism to encourage other network members,especially manufacturers to voluntary further improve the remanufacturing design level,so that the interests of all members will realize Pareto improvement.For the research of the present supply chain network,the research of the supply chain has certain innovation and practical significance.The research of this paper provides decision support for enterprise policy makers and relevant government departments.