Closed-loop Supply Chain Price Decision And Coordination Mechanism Research Based On Remanufacturing

With Rapid expansion in economic benefits, energy crisis and environmental pollution of the world are also increasing. Thus people begin to reflect the way of economic growth, how to achieve win-win solution between economic and environmental benefits is urgent. Strengthening the management of closed-loop supply chain construction plays a very active role not only on the social environment and ecological protection, but also reducing production costs and improving profits. The complexity structure of closed-loop supply chain has led to imbalance, and the pricing accuracy of the closed-loop supply chain has played a decisive role in the level of action, therefore the design of rational pricing coordination mechanism to achieve closed-loop Supply Chain Performance optimal closed-loop supply chain management as an important area of research.Game theory was used in this paper. With pricing of product recovery closed-loop supply chain as the entry point, two market structures have been constructed, namely two manufacturers (competing), retailer and a single manufacturer, two retailers (competing). A decentralized decision-making game (stackelberg equilibrium) model and a concentrated cooperative decision-making model were applied to the pricing strategy model of the two closed-loop supply chain. Decentralized and concentrated cooperation model were compared and the impact of corresponding parameters on the profit are analyzed. Then a coordination mechanism was taken respectively, and the corresponding numerical example analysis is carried out. The results show that the mechanism can coordinate the profit of supply chain members effectively, achieving the purpose of maximizing system efficiency.The results show that:No matter what kind of market structure, decentralized decision-making will have a two-way dual inverse problem of fare increase, leading to lower efficiency of the supply chain system. Both the competition increase of market sale and recovery will Increase the efficiency of supply chain system. However, this would reduce the profits of competitor, while profits of the other nodes in the supply chain will increase. The profits of retailers and manufacturers decrease with the increase of demand price elasticity, and increase with increase of the recovery price elasticity.