Research On Incentive Mechanism For 3PL Recyclers In WEEE Reverse Logistics

With the advent of the information society and the steadily growing consumption of electrical and electronic equipment(EEE)worldwide,society is facing the challenge of dealing with increasing amounts of waste electrical and electronic equipment(WEEE).Faced with nearly 160 million devices Waste Electrical and Electronic Equipment(WEEE),regulations,policies,and collection and recovery systems based on extended producer responsibility(EPR)have been implemented.Moreover,3PL recyclers in reverse logistics may be the most effective way to meet the goals of EPR programs and third-party logistics(3PL)has been introduced.It signifies low participant in RL of e-waste in embarrassment though it is a valuable and potential business.Thereby the key to the problem is how to design the incentive mechanism for 3PL enterprises to take part in reverse logistics of WEEE.In order to improve low participation in reverse logistics of WEEE,this paper ought to design a set of incentive contracts for 3PL recycler under the recycler's asymmetric information in order to increase the treatment rate of WEEE so that reverse logistics of WEEE will be more developed.Moreover,recycling economic can be achieved by manufacturers producing household appliances.Focusing on 3PL recyclers,firstly,his upstream incentive mechanism model is constructed based on two-part tariff contracts so that models under symmetric information,unilateral asymmetric information and bilateral asymmetric information are build.So the problem about how 3PL recyclers obtain WEEE from WEEE brokers and individual recyclers has been solved.By numerical examples,the conclusion that recycling proportion is decided by both information asymmetry has been drawn.Secondly,his downstream incentive mechanism model is constructed based on wholesale-price contracts.Based on baseline case under symmetric information where 3PL recyclers' recycling utilization ratio is common knowledge,this paper applies bi-principals-one-agent model to analyze how recycling utilization ratio as 3PL recycler's asymmetric information has effect on incentive mechanism.Furthermore,extended multi-principals-one-agent model is introduced in order to analyze how incentive mechanism is influenced by both asymmetric information and amount of producers simultaneously.And it is found out that 3PL recycler could ensure a steady profit by signing n contracts with n producers.In order to improve revenue,3PL recycler ought to spend more to boost recycling utilization ratio accordingto our Theorems so that massive WEEE can be recycled properly.Above all,incentive mechanism for 3PL recyclers in the whole WEEE reverse logistics has been solved in this paper.