Study On Pricing Strategy Of Remanufacture Closed-loop Supply Chain In Wasted Household Appliances

Re manufacture closed-loop supply chain in wasted household appliances was facilitated to come into being by multiple resources contained in household electrical appliances, serious environmental pollution caused by household electrical appliances and the characteristics of household electrical appliances are suitable for re manufacturing. At the same time, re manufacturing closed-loop supply chain can be promoted to be much more efficient by reasonable recycling channel, treatment methods and pricing strategy. As a result, the pricing strategy of remanufacture closed-loop supply chain in wasted household appliances has become a hot topic among researchers at home and abroad.To study the pricing strategy of wasted household appliances from the angle of view of the closed-loop supply chain, the below issues need be focused on:Firstly, the creation issues of remanufacturing closed-loop supply chain in wasted household appliances. To focus on core business, the manufacturers like to outsource the recycling process, which derived from a variety of home appliance recycling and processing channels, and resulting in a wide variety of remanufacturing closed-loop supply chain model. Secondly, pricing strategy issues for the members of supply chain. Different pricing strategies of the decentralized and centralized decision are taken by the members of the supply chain with profit drivea Thirdly, the pricing problems of coordination. Supply chain system profit change with the different pricing strategy, and the pricing strategies are needed to be considered, and then the system loss of profits can be reduced.To focus on the above issues, by taking the supply chain theory method, product life cycle method, game theory, the optimal value function solving method. Two modes of waste household appliances remanufacturing closed-loop supply chain are established including the manufacturer is responsible for processing and the third party is responsible for processing. The pricing models under the two modes are established, and the pricing strategies are researched when supply chain members are making decentralized and centralized decisions. At the same time, the third party processing pricing coordination strategy is put forward through the design of profit sharing contract and cost sharing contract. The pricing strategies of household electrical appliance enterprises have the instructive and valuable use to improve the operational effectiveness of closed-loop supply chain of home appliance.The main work and conclusion are as below:1. According to the characteristics of household electrical appliance products suitable for remanufacture, introducing the concept of the product life cycle, and refining the flow process and reprocess of the appliance. Then based on a different approach to deal with the waste household appliances, re manufacturing closed-loop supply chains in waste household appliances dealt with manufacturers processing mode and the third party processing mode are established.2.The dynamic game decision processes of supply chain members in two kinds of processing modes are analyzed, and the effect of the ratio of components can reuse, the proportion of raw material can be refined, waste disposal ratio on re manufacturing are considered. The pricing models of decentralized and centralized decision are constructed. The optimal pricing strategy and the maximum profit of supply chain members are put by using the method of optimization.3. The influence of reuse ratio n1and consumer price sensitivity coefficient μ on the optimal selling price and recovery price is theoretical analyzed. Using numerical examples and sensitivity analysis of n1and μ, the conclusion that the profits of manufacturer and supply chain system increase with the increasing of n1or the decreasing of μ under two kinds of processing modes. And the result that the third party processing mode is the best choice for manufacturers to focus on core business. Finally, the supply chain management strategies are given based on the increased n1and the weakened μ.4. Through the quantitative analysis based on a numerical example, the result that the profit of closed-loop supply chain under centralized decision is obviously better than the decentralized decision is verified, and the conclusion supply chain members should take coordinated measures to improve the profits of supply chain system is put. A supply chain coordination contract is designed in this paper, that is, the manufacturers and retailers share the profit from sales with a proportion of Φl and (1-Φl), the manufacturers and the third party bear the recovery costs with a proportion of Φz and (1-Φz). The optimal pricing strategy based on this coordination contract is put by solving the pricing model.