Study On Reward And Penalty Mechanisms Of Closed-loop Supply Chain Under The Perspective Of Collection Responsibility-Sharing

With the rapid development of China’s economy and society, people’s standard of living is rapidly increasing, our country has become a big electrical and electronic products production, consumption and disposal country in the world, but because China has not yet built up an effective recycling re-manufacturing network of waste electrical and electronic products, the vast majority of waste electrical and electronic products cannot be effectively recycled, which causes serious pollution to the environment.The fifth Plenary Session of the 18 th CPC Central Committee put forward five development ideas which are innovation, coordination, green, open and sharing.Therefore, this article constructs three closed-loop supply chain model on recycling electrical and electronic products re-manufacturing, and integrated uses the backward induction method, game theory, comparative analysis method and MATLAB simulation method, and after research we can find several conclusions:(1) When the manufacturer leads the closed loop supply chain and the manufacturer is responsible for recycling, the government takes the reward and penalty mechanism can reduce the new products’ wholesale price and retail price and the retailer and consumers can benefit from it. And the recovery rate of the waste electrical and electronic products, the re-manufacturer’s incomes and the retailer’s incomes can also be improved. At the same time, the government should take the measure that implementing the reward and penalty mechanism only for the re-manufacturer so that when the government give the same reward and penalty intensity can obtain lower wholesale price,retail price and higher recovery rate, and the incomes of the re-manufacturer’s and the retailer’s are higher, which can benefit the re-manufacturer, the retailer and consumers.(2)When the manufacturer leads the closed loop supply chain and the manufacturer sells new products directly to consumers through the internet platform and entrusts a third part collector to do the recycling activities, the government takes the reward and penalty mechanism can reduce the new products’ retail prices which can benefit the consumers and improve the recovery rate of the waste electrical and electronic products. Meanwhile,the government should take the measure that implementing the reward and penalty mechanism only for the collector, which enables the leader of the closed-loop supply chain to get higher incomes and income’s growth than the other two reward and penalty mechanism, thereby making it an active participation in recycling activities, while thecollector is also profitable.(3) When the retailer leads the closed loop supply chain and entrusts a third part collector to do the recycling activities, the government takes the reward and penalty mechanism can reduce the new products’ wholesale price and retail price and the retailer and consumers can benefit from it. And, the recovery rate of the waste electrical and electronic products and the retailer’s incomes can also be improved.Meanwhile, the government should take the measure that implementing the reward and penalty mechanism only for the collector, so that the retailer can get the lowest wholesale price of the new products, the manufacturer can buy back the waste electrical and electronic products with the lowest price and the recovery rate of the closed loop supply chain is the highest, while the manufacturer, the retailer and the collector are able to get higher income, and their incomes can all increase with the reward and penalty mechanism intensity of government increases.