Pricing And Coordination Of Reverse Supply Chain Recycling Waste Electrical And Electronic Equipment Under Extended Producer Responsibility

With the development of global economy and technology, the conduction of recycling and remanufacturing of waste electrical and electronic equipment is of giant importance to cope with a shortage of social resources and environmental pollution as growing amount of waste products are emerging. During the process of recycling, appropriate channel modes should be selected as well as reasonable remanufacturing approaches and rational pricing strategy, aiming to the effective operation of the reverse supply chain. While the implementation of extended producer responsibily (EPR) helps to promote recycling and remanufacturing process of waste products, the theory research and practiced application of EPR regulation are still in its infancy period at present. Therefore, the investigation of pricing and coordination of reverse supply chain recycling waste electrical and electronic equipment under EPR are significant in building resource-conserving society and developing circular economy.By formulating Stackelberg game models considering diverse strategy, both circumstances of new product to manufacture and remanufacturing are considered with consumer showing different preferences in payment willingness of different products. Meanwhile, two recycling modes of recycling waste electrical and electronic products are discussed from the perspective of recycling subjects:(1) recycling by the manufacture; (2) recycling by the professional processors. Special attentions are paid on both situations of recycling by the manufacture and the retailer under subject (1) along with seniors of recycling by processors and retailers under subject (2). A sound look is taken at pricing strategies and revenues of channel members under decentralized decision-making and overall profits of supply chain under centralized decision-making. Furthermore, coordination mechanism within the channel are figured out based on the principle of profits maximization, rewards and punishment systems to inspire supply chain members are put forward in the hope of increasing channel utilities.