Analysis For Closed-loop Supply Chain Of Two Types Of Products With Government Subsidies

With the development of economy,The accumulation of a large number of waste materials has caused environmental pollution.How to deal with the waste products becomes a difficult problem.Recycling and remanufacturing in closed-loop supply chain can not only reuse the surplus value of waste materials,but also save resources and protect the environment.In recent years,in order to achieve energy conservation and emission reduction,the government has introduced many policies to encourage the development of closed-loop supply chain,especially the remanufacturing industry.Government subsidies play a crucial role in the development of closed-loop supply chain.Different forms of government subsidies have different impacts on the closed-loop supply chain.This paper studies the effect of three government subsidies on the closed-loop supply chain.The three types of government subsidies are government consumption subsidies,“trade-old for new” subsidies and “trade-old for remanufacture” subsidies.This paper construct a closed-loop supply chain model with both new and remanufactured products and consider the random recycling of waste products.The effects of three kinds of government subsidies on the closed-loop supply chain are studied from the perspective of consumers,the scale of closed-loop supply chain and enterprises.Finally,the optimal solution in the closed-loop supply chain is analyzed theoretically and numerically,and a series of conclusions are drawn.The research shows that adding three kinds of government subsidies at the same time will affect consumers' purchase decision,consumer utility,closed-loop supply chain scale,enterprise's pricing decision and enterprise's profit.When government subsidies are greater than a certain level,both consumer utility and closed-loop supply chain scale increase.Three types of government subsidies boost sales of new products and discourage sales of remanufactured ones.The bigger the government subsidy,the more significant the effect.Numerical analyses show that adding three types of government subsidies at the same time is profitable for both manufacturers and retailers.We suggest that when new products and remanufactured products are subsidized at the same time,the degree of subsidy for remanufactured products should be appropriately increased to stimulate consumer demand for remanufactured products.The government should determine the degree of product subsidy according to different objectives.