Decision-making Of Reverse Supply Chain Based On Government’s Subsidy And Patent Protection

The rapid development of technology and modern industry produces a large amount of waste electrical and electronic products and create the problem of environmental pollution and resource waste. Therefore, the government and the consumers who have the environmental protection consciousness and the concept of sustainable development are also forcing the manufacturers to pay more attention to recycling and remanufacturing activities. However, due to the remanufacturing is still at the early stage of development, so the research of how to encourage the development of remanufacturing industry under this background is particularly important. In view of this, the paper considers the government subsidies and patent protection, and using the relevant knowledge of game theory and numerical analysis method to research the decision-making mechanism between the government and the remanufacturing reverse supply chain system. The aim is to give some guidances of the design of the government and the remanufacturing reverse supply chain members.The main research contents and conclusions are summarized as follows.(1) The study of different remanufacture subsidy schemes of government under the take-back directive and their influence on stakeholders’ decisions is dealed with in the third chapter. Using the SOP model of remanufacture subsidy to investigate the best subsidies scheme. The study compare three forms of remanufacture subsidies scheme:(i) Subsidies to manufacturer,(ii) Subsidies to recycler, and(iii) Subsidies to consumers. The study shows that their impacts on different stakeholders can be quite different, and it is better for government to subsidies recycler than that to subsidies manufacture from the aspect of total profits of the supply chain members. The particularity of subsidies to consumers is also considered in this paper, and show how contribution factor affect government’s final decisions.(2) Based on a market which has perfect patent protection and included amanufacturer and a recycler, taking the patent licensing fees and the recycling efforts of third-party professional remanufacturers and the balance of government intervention into account, a bilevel programming model between the government and the reverse supply chain system was established. The study compare two forms of remanufacture subsidies scheme:(i) Subsidies to manufacturer,(ii) Subsidies to the third-party remanufacturer. Through the calculation and analysis of charging of patent licensing fees with government subsidies and tax, the study shows that the suitable financial intervention adopt by the government can promote remanufacturing activities and improve the conclusion of total social welfare.