Closed-loop Supply Chain Coordination Mechanism In Bilateral Competitive Market Structure

Along with the world economy booming,the global energy consumption isincreasing. With the development and use of energy, energy sources dried up.In theprocess of economic development,Various waste caused serious pollution on theecological environment.So the countries in the world have introduced laws andregulations to protect the ecological environment. The traditional supply chain facesvarious restrictions and pressure, it needs to restructure and change urgently. Thereverse supply chain provides a new way.for environmental protection and efficient useof resources as well as sustainable development. So it needs a way that beyond thetraditional management approach to achieve coordination and cooperation between theenterprises. This new management approach requires integration of the forward supplychain and reverse supply. Then the closed-loop supply chain came into being.This paper uses game theory to study that when the retailer is responsible forrecycling products, the income distribution and coordination mechanism of theclosed-loop supply chain members under the bilateral monopoly and unilateralcompetitive market structure. It analyzes the concentration of decision-making anddecentralized decision-making under the conditions of symmetric information, themanufacturers and retailers in both cases how to decide the optimal decision variablesand income distribution. The article also analyzes the two retailers in the product marketof asymmetric information, the revenue impact of the various members of the supplychain.Under the information symmetry and asymmetry cases, by comparing severaldifferent decision-making modes, then get a different decision on the members of theoptimal decision variables,income distribution, and come in a centralizeddecision-making mode, the parameters are superior to other decision-making parametersof the model, then the closed-loop supply chain contract coordination strategy, a rationalallocation of the income of each member.On this basis, we further studies when the retailer is responsible for recycling, eachmember in the closed-loop supply how to game in bilateral competitive marketstructure.This paper analyzes the concentration of decision-making and decentralizeddecision-making under the conditions of symmetric information, the manufacturers andretailers in both cases how to decide the optimal decision variables and income distribution.This paper also studies the two retailers’s information asymmetry in theproduct market, the impact of on the income of each member of the supply chain.whenthey form price alliance.Comparing the two cases that information is symmetrical andasymmetrical, the impact of three different decision-making models for the optimaldecision variables and income distribution of the members.The article make somenumerical examples for different decision-making model,and it verifies the feasibilityand correctness of the models.Finally, the article according to the above conclusion, proposes coordinationmechanism of the closed-loop supply chain which is based on price fraud gamemode.Manufacturing and retailers through negotiations making the price that both sidescan accept of the wholesale price of products and recycling of waste materials prices.This method not only protects the manufacturer’s reasonable income effectively but alsoenhances the overall competitive advantage of the closed-loop supply chain. Insummary, it enables the development of closed-loop supply chain more practicalsignificance.