Closed-loop Supply Chain Network Equilibrium Decision Considering Consumer Behavior Under Government Subsidy

Government subsidy are an effective method to promote the development of enterprise remanufacturing.At the same time,consumer behavior has an impact on the market demand for new product and remanufactured product,reshaping the closed-loop supply chain equilibrium.Taking ZL cement enterprise as an example,this paper considers government subsidy and introduces consumer behavior into the closed-loop supply chain network,which theoretically expands the closed-loop supply chain network equilibrium model considering consumer behavior and provide reference for government departments formulating subsidy policy and enterprise optimize production decisions in practice.The main research work of this paper is:(1)Considering consumers’ low-carbon preference and using the variational inequality method to establish closed-loop supply chain network equilibrium model with profit and carbon emissions objectives under government subsidy,and find that government subsidy in appropriate interval and consumers’ low-carbon preferences can help increase sales of remanufactured products and improve environmental performance.In this paper,consumers’ low carbon preference is introduced into the closed-loop supply chain network to study closed-loop supply chain equilibrium decisions with economic and environmental objectives.Most of the existing literature only considers the price difference between new products and remanufactured products.According to the survey of ZL cement enterprises,the models and algorithms in the paper are verified.Results show that the government appropriately controls the subsidy within the range of(0,20)yuan/ton can lower the carbon emissions while increasing the market share of remanufactured products and the remanufacturing enthusiasm of enterprise.Consumers’ low-carbon preference can help remanufactured products cannibalizate new products and reduce the carbon emssions of closed-loop supply chain network,but also lead to lower profit of the closed-loop supply chain.(2)Considering consumers’ perceived value and using the variational inequality method to construct closed-loop supply chain network equilibrium model under the government subsidy aiming at profit maximization and carbon emissions minimum,and finding that government subsidy can help increase the market share of remanufactured products within a certain range and decrease carbon emission while the loss of corporate profits are small.The dimensions of consumers’ perceived value have different effects on the economic goals and carbon emission targets of closed-loop supply chain network.In this paper,consumers’ perceived value is made up of consumers’ perceived service life and perceived low carbon levels and the market demand is extended to an uncertain situation,and the closed-loop supply chain network equilibrium decision in this context is studied.Existing research ignores the heterogeneity of new and remanufactured products in terms of consumers’ perceived service-life and perceived low-carbon level.According to the data of ZL cement enterprise,the model and algorithm in the paper are verified.Results show that government subsidy can significantly increase the market share of remanufactured products and improve environmental performance while ensuring higher economic benefits within the range of(0,5)yuan/ton.In addition,a higher consumers’ perceived price,perceived service life and perceived low carbon level can increase sales of remanufactured products.The higher of the first two can help improve the environmental performance of closed-loop supply chain network,but lead to lower economic performance,while the higher of the last is harmful to the environment,but can contribute to improving economic benefits.