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Research On Pricing Strategy Of Closed-loop Supply Chain Based On Producer Recycling Behavior

Posted on:2019-04-28Degree:DoctorType:Dissertation
Country:ChinaCandidate:R H LuFull Text:PDF
GTID:1369330590466581Subject:Management Science and Engineering
Abstract/Summary:
Waste products can cause a lot of environmental pollution,degradation of ecosystems and great harm to human health,therefore more and more countries and regions start to implement relevant laws and regulations to manage these waste products.The implementation of these laws and regulations forces enterprises to be responsible for recycling and processing/remanufacturing of used products,thus making producers recycling mandatory.On the other hand,the reuse or remanufacturing value of used products is high,so many producers voluntarily participate in the closed-loop supply chain,which reflects the voluntary nature of producer recycling behavior.Whether the producers’ recycling behavior is voluntary or mandatory will affect the pricing strategy of the closed-loop supply chain,thus affecting the benefits of all supply chain members.Therefore,this paper studies the pricing strategy of closed-loop supply chain from the perspective of producers’ recycling behavior.Firstly,this paper constructs a closed-loop supply chain decision model for two-period,multi-period and infinite planning horizons under the mandatory producer recycling scenario,and analyzes the optimal pricing and production strategies of each period under different remanufacturing cost-saving conditions.The result suggests that in the two-period setting the manufacturer and the retailer should set different wholesale prices,sales prices and production quantities according to different remanufacturing cost savings;in the multi-period setting the manufacturer and the retailer should adopt the same pricing and manufacturing strategies except for the first and the last period with the low remanufacturing cost savings and adopt the same pricing and manufacturing strategies except the first period and the last two periods with the high remanufacturing cost savings;in the infinite-horizon setting the manufacturer and the retailer should employ the same pricing and manufacturing strategies except for the first period.In the limited periods,both the manufacturer and the retailer should make lower prices in the earlier periods to provide cores that are essential for the low cost production in the later periods.Secondly,on the basis of mandatory recycling,considering the characteristics of short life-cycle and uncertain demand of innovative products,the closed-loop supply chain model of manufacturer recycling and retailers recycling is established,and the optimal retail price and manufacturer’s profit under these two modes are analyzed,and the manufacturer’s optimal take-back channel selection is given.The extended analysis of the model is carried out using numerical analysis.The study find that when forced to recycle,the manufacturer would prefer the retailers to carry out the recycling duty;when producer recycling is voluntary,retailers recycling mode would be better than manufactures recycling mode provided the retailers recycle all their ordered products.Thirdly,consider the voluntary nature of producer recycling behavior,the paper first set up the two-period profit maximization model when return rate is determined by the recyclers,and get the profit,price,sales volume and green activity program index in the mood of the manufacturer collecting the used products directly and the retailers collecting the used products for the manufacturer.And also analyzes whether the manufacturer’s best selection of take-back channel can achieve the unification of operational,environmental and social benefits or not.The analysis reveals that under the same cost structure,the manufacturer’s choice can realize the unification of operational,environmental and social benefits,and when the cost structure is different,the manufacturer’s choice does not always realize the unification of operational,environmental and social benefits.Whether the green activity program is the same or not,the manufacturer’s choice can always achieve the unification of operational,environmental and social benefits.Then this paper aims to get the pricing and coordination strategies of centralized and decentralized closed-loop supply chain based on the perspectives of profit maximizing and environment performance maximizing.The result shows that: environment performance decreases as the profit baseline improves,and the same revenue sharing contract with different parameters can coordination the two types of supply chains.Finally,on the basis of voluntary recycling,considering the short life cycle of the innovative products and the demand uncertainty,the paper studies the optimal pricing and production strategy of the manufacturer when the recovery quantity depends on the demand.It is found that when demand uncertainty increases,it is more advantageous to make remanufacturing,which can reduce the loss caused by the demand uncertainty.
Keywords/Search Tags:Closed-loop supply chain, pricing, mandatory recycling, voluntary recycling, return rate
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