Selection Of Mixed Recovery Models In Closed-loop Supply Chain

At present, our society is facing a new challenge that economicdevelopment is accerlerating quickly and scientific innovation is appliedcorrospondingly. Human requirements have gone beyond their basic materialdemand, but seek and enjoy abundant product services made up of variousmaterial resources, which results in the excessive expoliotion of social naturalresources and more and more wastes. Not only does it pollute and damage theenvironment, but also threat the life of human beings and other creatures. Manycountries have been getting increasingly serious about the problems ofeconomic development, recycling use of resources and environment protection.And these contrunties promulgated some laws and regulations requiringmanufacturers to recycle their products and manufacture cleaning products.Some enterprises have carried out activities of recycling wastes andremanufacturing products, which makes big profits and wins great socialreputations. More and more third party recyclers who specialize in recyclingbusiness have participated in the market competition. The individual operationbetween enterprises is not efficient, but collaborations of different stakeholdersalways create more benefits. Reverse logistics and closed-loop supply chain arehighly develoed in the background of these factors.Currently, another important factor to promote the closed-loop supplychain formation is a new transaction mode (electronic commerce). This newtransaction method has changed the traditional flow of goods but the goods canbe directly flow from manufacturers to consumers, which makes consumers’ideas more personalized and fashional but generates more wastes instead.Therefore, electronic commerce not only creates a great influence in forwardsupply chain, but also presents a great challenge in reverse logistics. The paper puts forward the selection mixed recovery models problem ofthe closed-loop supply chain according to the theory of life cycle of economictheory, the product life cycle theory and the realistic environment analysis.There are two main parts:First, the paper constructs the game model of closed-loop supply chain inmixed mode of recovery under the traditional marketing channels, then obtainsthree kinds of mixed mode of closed loop supply chain equilibrium solution byusing the method of game theory, and then selects three kinds of differentrecovery mode respectively from the equilibrium solution in four differentperspectively, including node enterprises environmental protection point ofview, the retailer perspective, various angles and the angle of the whole CLSCsystem. By analyzing the sensitivity of parameters on the variables, it is foundthat if remanufacturing cost saving increases, the retail price and wholesaleprice will decreases, the recovery rate will rise, profits of members of thesystem will rise; if recycling scale coefficient increases, namely the degree ofdifficulty in recovery increases, the wholesale price and retail price willincrease, the rate of recovery will decline, sales also will fall, the profits ofnode enterprise also will drop. This shows that the production enterprise muststrain every nerve to the development of remanufacturing technology, whichforms a certain scale and save more costs; other enterprises in the chain have tocooperate with each other and work together to build recycling channels whichwill save the fixed cost of recycling. As a result, every enterprise in the wholenew system can share more revenue.Second, the paper constructs the game model of closed-loop supply chainin mixed mode of recovery under the dual marketing channels, then obtainsthree kinds of mixed mode of closed loop supply chain equilibrium solution byusing the method of game theory, and then selects three kinds of differentrecovery mode respectively from the equilibrium solution in four different perspectives, including node enterprises environmental protection point of view,the retailer perspective, various angles and the angle of the whole CLSC system.By analyzing the sensitivity of parameters on the variables, it is found that: thedecrease of the share of the traditional market will decline the price oftraditional retail and increase the price of online retail; the profit of system isthe lowest when the traditional market share is nearly half of the entire marketshare; electronic market and traditional market competition will cause the saleprice rise in forward product flow process, and then each body’s profits will rise;competition between the enterprises in the recovery market, can cause the wasteproduct prices which give to customer will rise, the profit of the whole systemwill also rise; No matter competition between the sale market of traditionalmarketing and the electronic marketing channels, or the competition betweenenterprises in the recovery market, the increasing degree of competition willmake the whole system of the closed-loop supply chain’s profit increase. Thisshows that the increasing competition, no matter in sales market or recyclingmarket, would be beneficial to CLSC.