Price Strategy Analysis For The Closed-loop Supply Chain Of Automobile Industry Based On Game Theory

In recent years, Chinese vehicle markets are quite active. Cars are produced with an annual production of over one million units. It is estimated that in future more than ten years, sales of national automobile will still maintain by 10%～15% increased ranges climbs. The demand of vehicle logistics is enormous under this rapid development. The rapidly increasing of automobile industry makes forward logistics maintain moderately rapid growth. But traditionary supply chain management just studies the process of production from raw material to customer, doesn't consider the treatment of used waste products by customers. However, with the development of social and science technology, the lifecycle of production becomes shorter and shorter, the environmental effects of the chemical substances from waste products becoming increasingly serious. How to treat and use these waste products effectively is a matter of great urgency. Because of reverse logistics providing a way to protect environment, efficient use of resources and sustainable development, it needs urgent study. So just pay attention to the forward logistics of automobile is not enough, we should combine the forward logistics with reverse logistics of automobile. We make these to form the closed-loop supply chain system at last.This paper utilizes game theory, economics and principles of management and other relative knowledge to analyze the closed-loop supply chain of automobile industry. On the base of introducing game theory and analyzing the automobile supply chain relative theory, the thesis studied on the price strategy of closed-loop supply chain with product recycling. On the based of new and reused production have the same price strategy, the paper proposed differential price model of automobile closed-loop supply chain with product recycling, and it analyzes the model using game theory. This paper compares optimal solutions of all decisions by doing numerical example, and gives out the optimal decision. At last, the carmaker and the auto dealer share the system's benefits by establishing an appropriate coordination mechanism.At last, the paper introduces Ford Motor Company's supply chain strategy and a domestic car productive enterprise's automobile recovery treatment system. This illustrates that closed-loop supply chain management is necessary and is an urgent need of the social situations. The closed-loop supply chain management will make automobile industry have a new future.