Research On Pricing And Recycling Channel Selection Of Closed-loop Supply Chain Considering Trade-in Under Manufacturer’s Leadership

With the continuous development of the economy and technological innovation and breakthroughs,the speed of product replacement has accelerated.Carrying out trade-in business in the closed-loop supply chain has become a new model for recycling waste products.Trade-in can not only promote the sustainable development of the environment,but also stimulate demand,promote product replacement and upgrading,which attracts extensive attention from enterprises and consumers.In recent years,manufacturers have launched trade-in services,such as Huawei,OPPO,Apple etc.The implementation of trade-in business by manufacturing enterprises is affected by factors such as market environment,product types and recycling channels.Therefore,how to make pricing decisions for trade-in business and how to choose a recycling channel for trade-in business has become an urgent problem for manufacturers to solve.Based on closed-loop supply chain theory,consumer utility choice theory,game theory and other relevant theories,this paper constructs the trade-in recycling game model between manufacturer entrusting retailer and third-party recycler.It analyzes consumers’ purchasing decisions under different product sales situations and studies the issue of manufacturer-led trade-in pricing and recycling channel selection.Considering the single-generation product situation,the coexistence of two-generation products,and the sales situation of the coexistence of new products and remanufactured products,and use the reverse induction method to solve the optimal pricing decision of the trade-in business,compare the product pricing,demand and manufacturer’s profit of different models,and use Matlab to simulate and analyze the impact of relevant parameters on the manufacturer’s optimal profit and recycling channel selection.It provides theoretical reference for manufacturers to make trade-in business pricing decisions,and also provides reasonable suggestions for manufacturers to carry out trade-in business.According to the research questions and through theoretical analysis,this paper draws the following conclusions:(1)When a manufacturer entrusts a retailer to carry out a trade-in recycling business,the retailer will raise the sales price,and also raise the recycling price to attract consumers to participate in trade-in activities;when the manufacturer entrusts a third-party recycler to carry out the trade-in recycling business,the recycling price of old products is low,and consumers are not enthusiastic about trade-in.(2)In the case of single-generation product trade-in business,the production cost of the product affects the manufacturer’s profit,and the manufacturer should formulate an appropriate trade-in strategy according to the cost structure of the product;In the case of coexistence of two generations of products,the improvement of the innovation degree of new products can increase the profits of manufacturers,manufacturers should improve the innovation ability of enterprises,accelerate the upgrading of products in the market;In the case of coexistence of new products and remanufactured products,the manufacturer’s profit increases with the increase of consumers’ acceptance of remanufactured products.The manufacturer should strengthen the publicity of remanufactured products and improve consumers’ acceptance of remanufactured products.(3)The manufacturer chooses different recycling channels to carry out the trade-in business,which is determined by evaluation discount for the old product of re-consumer’s.When the consumer’s evaluation discount for the old product is low,the manufacturer should entrust the retailer to carry out the trade-in business.When consumers have higher discounts on old products,manufacturers should entrust third-party recyclers to carry out trade-in business.Before starting the trade-in business,manufacturers should do sufficient market research,and carry out targeted trade-in business based on the number of repeat consumers and the discounts on the evaluation of old products.Faced with the increasingly saturated and competitive market environment,enterprises must rely on advanced manufacturing capabilities and effective management methods to enhance their core competitiveness,and closed-loop supply chain management has become an important way to improve their core competitiveness.This paper studies the trade-in business in the closed-loop supply chain,which to a certain extent promotes the research process of the trade-in strategy of manufacturing enterprises,further enriches the relevant content of closed-loop supply chain management,and can provide theoretical support for manufacturers to carry out the trade-in business;at the same time,this paper considers the pricing problem of trade-in business under different product sales situations can make reasonable pricing decision-making plans for enterprises,which has important practical significance for building a standardized recycling system,improving the recycling efficiency of old products,realizing resource recycling and sustainable development of economic society.