Recovery Channel Selection And Coordination Strategy Research Based On Closed-loop Supply Chain With Manufactures’ Competition

With rapid economic development, negative problems has been increasingly prominent.The availability of resource is low, serious environmental pollution has been a threat to thesurvival of mankind and social development. This background has led to a new managementmode closed-loop supply chain management. Research on closed-loop supply chain inacademic world have achieved certain results. Among many aspects about closed-loop supplychain, the recovery strategy is a complex and also important aspect. How to select theappropriate recovery channels is vital and critical for closed-loop supply chain. This paperconstructs four different kinds of recovery channel models. The main research contents are asfollows:(1)Based on manufacturer lead the closed-loop supply chain, we study three recoverymodels manufacturer recycling, retailer recycling, the3rd party recycling. Compare thesemodels, we can know that when the manufacturer is in charge of recovery, the price andrecycling quantity of wasted product in reverse supply chain are much high, the total utility ofsystem is also high than other two models. Compared to the former two models, the loss oftotal utility is equal to the loss of reverse supply chain’s utility due to dual pricing of wastedproduct. Comparison of3rd party recycling and retailer recycling, we know that the totalutility of system are equal, but the profit has been transformed from retailer to3rd party.(2)We consider the manufacturer and the retailer as a complete enterprise, which is incharge of recycling. Price of new product and remanufacturing product are cheap than thosethree models former, so the demands are increased.; Recycling price and quantity of wastedproduct are high than three models former, which increases system’s total utility. Andeliminate the loss of utility in forward supply chain and reverse supply chain, the total utilityof system is highest among all the four models.(3)This paper explains all the variables, and focus on analyzing the influence on decisionvariable and system which is caused by uncertainty demand, risk-aversion value, WTP value.Finally, intuitively display the influence through numerical analysis and MATLAB mapping.(4)It can be concluded from comparison of these models that total utility of system ishighest in centralized recovery, enterprises can obtain more profit through team work. Thus,we rationally allocate surplus profit by synthetically using the method of Shapley Value and the same profit growth strategy, in order to achieve Pareto improvement.The innovation of this paper are as follow:(1)In order to solve competitive closed-loop supply chain based on uncertainty demand,we construct new utility function to replace the traditional profit function as objectivefunction by using the expectation-variance method. Then analyze the solution, and explore theeffect which caused by each parameter.(2)In fact, the system cannot be coordinated by alone using Shapley Value method. Sowe synthetically use the same profit growth strategy based on Shapley Value to improvesystem total utility, and finally achieve Pareto improve and optimal state.