Research On Pricing Decision Of Closed Loop Supply Chain Of End-of-life Vehicles Under Government Subsidy

The number of scrapped cars in our country rises increasingly,which will cause environment pollution and waste of resources if it can not be treated properly.Research shows that most parts and components have the same effect as new parts after treatment,and the reuse of them can produce certain economic benefits,save costs,and alleviate the ecological problems caused by waste products pollution.The "remanufacturing" label will be marked for the re-sale of the disposed scrapped cars.Due to the cost,the price of the remanufactured products is different from that of the new products.Consumers at the end of the market will be affected by the price of the remanufactured products and there is also quality discrimination.Consumer heterogeneous and remanufacturing services will affect the market demand for new and remanufactured products and corporate profits,and ultimately affect the pricing of the two products.At present,in order to promote the recycling of remanufactured products and expand the market share of remanufactured products,the government has formulated a series of policies,the implementation of which also affects the pricing decision of closed-loop supply chain.In this paper,considering both consumer heterogeneity and remanufacturing services,the closed-loop supply chain pricing decision-making model of scrapped vehicles under different government subsidies is constructed.Firstly,a closed-loop supply chain pricing model under anarchic subsidies is constructed to explore the influence of consumer heterogeneity and service coefficient on decision-making.Then,government subsidies were added to build a closed-loop supply chain pricing model of government service subsidies,sales price subsidies and price subsidies recovery,so as to explore which subsidies are more effective under which conditions.The results show that:(1)the service coefficient can improve the pricing,new product demand,service level and recovery rate of the closed loop supply chain of end-of-life vehicles,and can also improve the profit of manufacturers and third-party recyclers.However,because retailers bear the service cost,the increase of service level will not increase the profit of retailers when the service coefficient is high.(2)The increase of the proportion of environment-friendly consumers has a positive impact on both corporate profit and recovery rate.For different subject profits,it shows a decreasing trend within a certain range,and an increasing trend when it exceeds a certain value.This indicates that within a certain range,the increase of the proportion of environmentally friendly consumers will have a negative impact on corporate profits,and beyond a certain range,it will begin to have a beneficial impact.At the same time,consumers’ perception of the quality of remanufactured products will also affect the profits of enterprises.When the perception of quality is low,the impact on profits is greater.(3)Different types of government subsidies have different influences on the pricing decisions of the main bodies in the closed loop supply chain of scrapped vehicles.Under the recovery price subsidy,the increase of the government subsidy coefficient will reduce the product pricing.In the case of government service subsidy and sales price subsidy,the price is directly proportional to the subsidy coefficient,and the change rate is higher than that of the recovery price subsidy.(4)Put forward suggestions on the specific subsidy measures of the government,and analyze how to subsidy from the perspective of the overall profit of the supply chain.Among them,the sales price subsidy is always the best,and the service coefficient will affect the effect of the other two subsidies,while the proportion of consumers has little effect;It also suggests how the government should subsidize individual entities.