Pricing And Coordination Of Closed-Loop Supply Chain With Two Markets

The closed-loop supply chain management has important theoretical and practical value for developing circular economy, implementing sustainable development, reducing costs, improving service levels and corporate image, and can solve the problem of resource depletion and environmental pollution at the same time. Closed-loop supply chain and open-loop supply chain, are both composed of by a number of decision-making body which are independent of each other, and cooperation among the various decision-making body are based on maximizing their own interests, so the study of closed-loop supply chain coordination has important theoretical and practical significance for solving the conflict of node enterprises goals and improving the closed-loop supply chain performance.Based on analyzing the relevant theory and research of closed-loop supply chain and supply chain coordination, this paper comprehensively apply of game theory, contract theory and optimization theory, use combination of quantitative and qualitative methods, in-depth study third-stage closed-loop supply chain pricing decision-making and coordination problem with two independent end-markets, the major elements are following:First we describe the basic theory of the closed-loop supply chain and supply chain coordination, analyze the reasons for supply chain disorder, brief introduce some common supply chain coordination mechanism, on base of which,we describe the basic theory of the supply chain contract from three aspects of the concept, role and classification.Second, in the situation of new products and remanufactured products for no difference, we build the closed-loop supply chain game models in the mode of centralized decision-making, decentralized decision-making and partly coordination. Based on Comparative analysis of the node enterprises'optimal decision-making and profits, we propose the revenue-and-expense sharing contract which can achieve the perfect coordination of closed-loop supply chain, and verify the conclusions by numerical simulation, determine the specific range of contract parameters. Lastly, the model is extended in the case of new products and remanufactured products found vertical differentiation, comparatively analyze the optimal decisions and profits of the closed-loop supply chain in the mode of centralized decision-making, decentralized decision-making and partly coordination, discuss how to apply the revenue-and-expense sharing contract to achieve the perfect coordination of closed-loop supply chain, and through numerical simulation verify the correctness and effectiveness of the model.The results show that:Compared to decentralized decision-making, the partly coordination can improve consumer welfare, enhance the environmental effects, resource utilization and system performance, but still can not achieve the optimal level of centralized decision-making; in the partly coordination, the alliance of manufacturers and retailers will significantly improve the closed-loop supply chain performance, and third-party logistics providers and manufacturers or retailers Union implements the perfect coordination of the reverse supply chain pricing decisions, and the two Union mode have exactly the same influence to the closed-loop supply chain performance; when the new products and remanufactured products exist vertical differentiation, manufacturers and retailers Union will make the best of new product sales, and while Significant increase in sales of remanufactured goods, the other two alliance mode will only affect the sales of remanufactured products; in the analysis of enterprises participation constraints, considering the node enterprise alliance will reduce in the range of revenue-sharing and cost-sharing ratio of the revenue-and-expense sharing contract.