A Closed-loop Supply Chain Pricing Strategy Based On Altruistic Preferences

The altruism is considered into the pricing model of closed-loop supply chain,and set the model including one manufacturer and one retailer.The manufacturer or the retailer collects used products from consumers.First,the paper studied the pricing strategy of the closed-supply chain without altruism and with altruism in different recycling mode.Then comparing the pricing strategy and profit of manufacturer,retailer and the closed-supply chain.From numerical analysis,the results show that: when recycling by the retailer,the altruistic preference behavior of the manufacturer can improve the utility of both retailer and the supply chain.However,the altruistic preference behavior of the retailer can improve the overall utility of the supply chain,but not for manufacturer.When recycling by the manufacturer,the altruistic preference behavior of the manufacturer can improve the utility of both retailer and the supply chain.However,the altruistic preference behavior of the retailer can improve the utility of manufacturer,but not for the overall utility of the supply chain.It shows that : the higher the coefficient of altruism is,the greater the loss of profit,even higher than the increase in profits of manufacturers.Retailer,as a for-profit organization,will appropriate to reduce their degree of altruism when their own profit is lower than the expected.So the retailer can not be full altruism.Whether manufacturers or retailers recovery mode,the existence of altruism preference can promote the cooperation of supply chain upstream and downstream policymakers,enhance the profit and effectiveness of the supply chain as a whole,realize the profit of closed-loop supply chain coordination that the profit of closed-supply chain considering altruism is higher than that of closed-supply chain without altruism.When manufacturers recycling,manufacturers and retailers is always maintained at a lower altruistic behavior,to ensure its own profit maximization.When recycling by retailers,manufacturers reduce their altruistic preferences even consider no altruistic behavior,and more willing to choose to cooperate with retailers who work with altruism.