Optimal Decision Research Of Closed-Loop Supply Chain Under The Replacement-subsidy

In recent years, with more and more attention of the academic institutions, social organizations, enterprises and government departments to such problem as environmental pollution, resource scarcity, the voice what emphasized the recycling of the waste products became more and more loudly, so the closed-loop supply chain management theory which followed the concept of circular economy development and aimed to maximize the product life cycle had been in the sights of the academia. The closed-loop supply chain is combined by the normal products sale supply chain and reverse products recycle supply chain, it can realize the development of the residual value of the products and secondary utilization of waste resources, and besides it can meet the dual requirements of social economic benefits and environmental benefits. Thus, researches on the closed-loop supply chain management theory have become the common focus of the government and academia.China is a big developing country and is facing serious environment and resource problems, so strengthen the recycling of waste resources is imperative. While, because the market economy system of our country is not perfect, related remanufacturing technology level is low, and the lack of public’s recycling concept, the resources recycling activities of related enterprises in our country is facing many difficulties. Our government has issued a series of policies and regulations to promote the waste resources recycling activities of the closed-loop supply chain and achieved a certain effect, and the academia has also carried out many studies about the management and decision-making problem of the closed-loop supply chain under the influence of government policies and regulations. But the focuses of current research scholars are all in the waste product recycling aspects of reverse supply chain, few of them studies the sale of remanufacturing products after the recycling of waste products. From the perspective of solving practical problems in our country, it has much more realistic guiding significance to promote the recycling of waste product from the research thought of considering the sale of the remanufacturing products. Based on the above thinking, on the basis of the government replacement-subsidy, this paper constructed the single channel sales centralized decision-making and decentralized decision-making closed-loop supply chain model with or without the government subsidy respectively, and also constructed the centralized decision-making and decentralized decision-making closed-loop supply chain model under the government subsidy which the remanufacturing product is sold through different channel respectively, and then the optimal pricing decisions and sales channel decisions of the closed-loop supply chain are obtained by the comparison analysis of different model, and also the designed revenue-sharing contract can coordinate the manufacturers direct marketing channel closed-loop supply chain model. Through this research, we mainly got the following relevant conclusions:(1) The government replacement-subsidy can effectively promote the recycling of waste products and the sale of the remanufacturing products, expand product market share of the remanufacturing products, and realize the reusing of the resource and the policy goals, then grow the scale of closed-loop supply chain on the whole.(2) In single channel sales closed loop supply chain model, the single replacement consumer, whole replacement consumers, manufacturer, retailer, closed-loop supply chain system, and social environment benefited from the government replacement subsidy. The single primary consumer and whole primary consumers were damaged by the government replacement subsidy. Thus, the government should set a reasonable subsidy proportion and establish other related policies to compensate for the utility loss of the primary consumer.(3) Under the government subsidy, the dual channel sales closed loop supply chain model can sell more remanufactured products and recycle more obsolete products, and also it can improve the profits of the closed-loop supply chain system and its members. Therefore, from both the perspective of closed-loop supply chain system benefits and environmental benefits, the manufacturer directly sale remanufacturing products is the more optimal channel choice.(4) The designed revenue sharing contracts can achieve the coordination of the dual channel sales closed-loop supply chain model effectively.