Research On Equilibrium Of Closed-loop Supply Chain Network In Automobile Industry

With the development of science and technology and the progress of people's life, there is great development of automobile industry in China. A lot of problems came out with the rapid development of the automobile industry. The shortened product life resulted in more discarded cars, the increased number of discarded cars resulted in serious waste of resources, and the improper treatment of discarded cars led to serious environmental and social problems. Therefore it is necessary to strengthen research on closed-loop supply chain.The operation mode of reverse supply chain in automotive industry is firstly discussed, and then it was combined with forward supply chain to analyze the closed-loop supply chain. Three types of closed-loop supply chain are put forward through the above analysis. A closed-loop supply chain model of the automotive industry was established on the basis of the traditional reverse logistics network which consisted of raw material suppliers, part suppliers, manufacturers, distributors, retailers and recycling centers. And variation inequality formulation was used to model the optimizing behavior of the various decision-makers and derive the equilibrium conditions of the whole supply chain. It does help to improve the economic efficiency of enterprises, long-term stability and development of the entire closed-loop supply chain. A numerical example is then raised to verify the correctness and the actual availability of the model.Strengthening research on the network balance of the automotive industry closed-loop supply chain can help to save resources, reduce cost and improve the economic benefit of enterprises. And it can also do help to consolidate the relations between the partners, improve the competitiveness of the whole supply chain and enhance the communication between the enterprise and customers to improve the quality of service. Besides, it can do help to reduce the environmental pollution and promote the society sustainable development. Therefore, it is necessary to lucubrate the closed-loop supply chain deeply for it can reflect real economy very well.