Closed-loop Supply Chain Decision-making And Coordination Considering Service Budgets And Consumers’ Low-carbon Preferences

With the rapid development of consumer upgrading and product cycles due to global industrialization,the increased awareness of environmental protection and the fact that consumers’pursuit of products is no longer limited to one aspect of product price or quality,more and more supply chain companies are focusing on the entire process of products from production to recycling,the improvement of product services and the impact of the amount of carbon in the manufacturer’s output on environmental performance and other aspects in order to improve the product market share,branding,efficiency and sustainable development in the context of global low-carbon environment.As a result,closed-loop supply chain management has become increasingly complex and more focused on consumer demand.This paper takes the closed-loop supply chain in which manufacturers produce low-carbon products as the main subject of study,and considers the common behavior of real companies in producing products to increase demand and consumer satisfaction,and then implement additional services,and takes the decision making and coordination of the closed-loop supply chain as the objective of the study.Through the Stackelberg game,we analyze and compare the service budgets set by manufacturers,retailers and recyclers respectively and the consumer Through the Stackelberg game,we analyze and compare the impact of decision outcomes such as optimal pricing in the presence of low carbon preferences of manufacturers,retailers and recyclers respectively,and propose two-part pricing contract coordination based on the comparison of decentralized and centralized models,and analyze and compare the coordination effectiveness of contracts under different service models both horizontally and vertically.The main findings of this paper are as follows:(1)Study of closed-loop supply chain decision-making and coordination that considers manufacturers’ service budgets and consumers’ low-carbon preferences.It is found that buyback prices are independent of service budgets and low carbon preferences,which is beneficial to recyclers for smooth development,and manufacturers need to set reasonable buyback prices to promote remanufacturing production and recycling.When service budgets are adequate,wholesale prices,retail prices,carbon reductions,service levels,recycling rates and demand and profits are only related to consumer low carbon preferences.When service budget is insufficient,service budget is positively related to price,recycling rate,carbon emission reduction,demand and profit,and also positively related to service quality and customer satisfaction(not related to low carbon preference);low carbon preference is negatively related to carbon emission reduction and demand,positively related to recycling rate and retail price,service level is not affected,while wholesale price is governed by service budget,ease of service provision and service sensitivity coefficient.(2)The impact of service budgets and consumer low-carbon preferences on closed-loop supply chain decision making and coordination is explored by constructing a model under retailers’service budgets.It is found that the repurchase price is only influenced by the cost of recycling.When the service budget is sufficient,each decision,demand and profit are only related to consumer low-carbon preference and each coefficient,and at this time,although each company is competing for profit,the supply chain conflict is not intense,and only the price decision and carbon emission reduction are negatively affected,which is worth balancing by the companies.When the service budget is insufficient and within a small range,low carbon preference is positively related to retail price,recycling rate,carbon emission reduction,demand and profit,and the service budget is positively related to each decision variable.In a larger range of budget constraint,low carbon preference is not related to recovery rate,service level and demand,but positively related to product price,where carbon emission reduction is influenced by service sensitivity coefficient;service budget is negatively related to wholesale price and positively related to other decision variables.(3)To explore the issue of closed-loop supply chain decision making and coordination in the context of recyclers’ service budgets.The study finds that the buyback price is higher when the service budget is sufficient.When service budgets are adequate,low carbon preferences are positively correlated with service levels,wholesale prices,and demand,while low carbon preferences vary in an inverted U-shape with retail prices,recycling rates,and carbon emission reductions.However,when the budget is insufficient,low-carbon preferences are negatively related to wholesale price,not to service level,and other decisions are positively affected;service budget is positively related to each decision variable,demand and profit.Changes in pricing decisions affect the profits of manufacturers and recyclers,and firms need to set reasonable prices,while recycling rates,carbon emission reductions and demand and profits are stimulated,and buyback prices remain influenced by costs only;service budget is positively related to each decision variable.(4)The introduction of the two-part pricing contract under the manufacturer’s service budget does not lead to centralized supply chain performance,but only to a certain optimization effect,and the coordination of the closed-loop supply chain requires the design of a more effective contract mechanism.(4)The introduction of the two-part pricing contract under the retailer’s service budget has centralized the supply chain performance,and the efficiency of the closed-loop supply chain coordination in this model is in the optimal state.The introduction of a two-part pricing contract under the recycler’s service budget does not result in a centralized supply chain performance.From the comparison results,the best results are obtained under the retailer’s budget and the second best results are obtained under the manufacturer’s budget,but both of them are better than the recycler’s budget,which will provide a reference for which budget model to adopt for the closed-loop supply chain and the effectiveness of the two-part pricing contract adopted to provide services under the corresponding model,and the balanced and sustainable state of economic efficiency and social responsibility and environmental performance in the supply chain system under the retailer’s budget.