Coordinate Pricing Strategies Based On Game Theory Analysis Of Closed-loop Supply Chain

Closed-loop supply chain is the reverse supply chain supplement our knowledgeforward into the supply chain in the traditional sense then loop supply chain systemembodies a complete sense of a reversible process. Finished products through theterminal along the supply chain, put forward the submission of finished productsusing recycled opposite direction countercurrent use of closed-loop supply chainsystem operating mode is such that: from access to resources-to the processing andproduction of resources-and then on the production of finished products forconsumption-eventually become waste materials，such as the operation of a businessprocess，change has become：from access to resources-to the processing andproduction of resources-and then on the production of finished products forconsumption-not all become final waste materials，but the classification of wastematerials processing and recycling of such a circulating loop supply chain model,reducing the extent of the damage and reduce the economic behavior of humansociety on the natural environment through best efforts，but also to produce ofresources consumed in the process as much as possible to minimize，but also makesthe end product as well as after-sales lowest cost effective way to achieve economicand environmental resources and social effective optimization.In the present society，is becoming a major trend is the growing environmentalcrisis and the sharp deterioration of the environment pollution and resource problems，for which there are more and more people are turning their attention toward the wasteproducts of the reverse process of recycling and reuse the.On the basis of this practicaland historical evolution of the above，also officially presented theoretical studies loopsupply chain management. Which also attracted widespread attention and support thetheory researchers administrations，companies and universities，but also to optimizeand improve practice. Of course, the pricing decision is a closed-loop supply chainmanagement academic theory into one of the key roles，which seriously affected theeffectiveness of the work of supply and demand as well as finished products upstream of the closed-loop supply chain system. For this recent period，the pricing decisionanalysis loop supply chain issues sparked widespread concern more people.Contents of this article are based on the closed-loop supply chain based pricingmodel，based on the discussion of the third party logistics recovery mode, through therational use of game theory，a comprehensive analysis and comparison to get the bestprice final decision under this circulatory system. Through hands-on research, we candraw the following assumptions and conclusions：suppliers and retailers，vendors andthird-party supply chain recyclers were forming a game between its two suppliersmust be fully taken into account in the decision-making the reaction of retailers andthird-party supply chain recyclers make their own decisions，so that it can help toensure maximum benefits to meet their goals；contrast，retailers, third-party supplychain recyclers must also consider the supplier’s production quota system，to ensurethe maximum of their income goals. In addition，the paper ’s impact on the incomestructure of closed-loop supply chain pricing model has been fully analyzed, relevantdata and conclusions confirm the theoretical foundation of the closed-loop supplychain.With people’s growing awareness of resources and environmental protection aswell as for the further understanding of the scientific concept of development underthe dual pressures of sentiment, as well as environmental protection departments andadministrative agencies，vendors pay more attention to reverse recycling wasteproducts and remanufacturing. By doing so not only allows businesses to use recycledwaste products for enterprises to achieve hard targets required environmentalassessment department also invested enterprises can minimize costs, improveeconomic efficiency of enterprises of scale.There have been reports suggested that theimplementation of closed-loop supply chain management companies can effectivelyreduce the production process requires approximately40%-65%of the cost. For thisreason, more and more companies consider as a closed-loop supply chain enterprisesto open up new areas of development of the new plan.Cost recovery fees andproduction companies will again be counted among the manufacturing cost of the product，and then calculate the company’s wholesale price should be how muchrevenue the company to achieve production optimization.