Study On The Closed-loop Supply Chain Pricing Problem Based On The Service Operations

Accompany with the rapid development of economy, the negative effect caused by human activities becomes obvious. The lack of resources, degradation of environment and environmental pollution become a tremendous threat to the survival and development of humanity. In order to satisfy the requirement to the behavior of enterprises the came from the economic development, environmental protection, government legal, and other factors, and the needs of the new situation, the closed-loop supply chain management emerged. Closed-loop supply chain is the integration of forward supply chain and reverse supply chain, and is more concerned about the benign cycle of economy and the ultimate value of customers. Satisfactory services and recycling is favored to bring the practicality and durability of products into play for the customers, and the purpose of business services operation is improving the sale of their products, customer satisfaction and loyalty, and maintaining good customer relations. This paper presents the pricing mechanism of service operation in different distribution strategies, and discusses the optimal pricing strategy and maximal benefits of different interests-bodies through quantitative analysis of modeling.The main work of this paper is as follows:The pricing issues of the closed-loop supply chain based on the service operation are reviewed. First, the origins, concept, structure e.g. of closed-loop supply chain management are summarized. Then, three aspects are reviewed, which are services (maintenance) operation of the traditional channels, services (maintenance) operation of the electronic channels, and the (sales and services) dual-channel based on the ownership. It's a well base for the solution and analysis following up.Considering the traditional maintenance service, this paper bring out a closed-loop supply chain composed of a manufacture, a distributor and a third-party at first, in which the manufacturer is responsible for the manufacturing of new products and the remanufacturing of recycling materials, distributor is responsible for the marketing sales of products, and the third-party is responsible for the maintenance and the new one replacement with old one. These three collaborate through their pricing strategies.Based on the analysis of the traditional maintenance service channel, and considering the e-commerce maintenance service, a multi-stage service and recycling operation model is constructed.The difference of service cost and recycling cost caused by the uncertainty of product quality in the service and recycling is considered. The model is solute by genetic algorithms, and the optimal pricing decisions and profits in various stages are acquired.After the analysis of the two parts above, the pricing issue of (sales and services) dual-channel based on the ownership is studied. It's considered all parties can get different system plus under different ownership mode, and then we study how the supply chain members to discover the potential of channel development through effective control strategy in allusion to different market structures, different product mix, and different elasticity of demand.Finally, a summary of the full text is brought, which sums up the conclusions and contribution of this paper, points out the inadequacy, and further research directions.