Supply Chain Research Of Durable Goods Based On Trade-in Contract

Nearly20years, our national economy is developing fast, recalled the brilliant achievements we have made, we found that rapid economic growth is the high cost of environmental pollution, especially the air quality was not coordinated with the level of high-speed economic development. At the same time, in2008, global financial crisis caused by the sub-prime crisis have made a huge effect on our real economy. Some in the foreign trade exportation primarily enterprise is on the verge of collapse, causing our country economic show unprecedented stagnation phenomenon. In order to make our economy get faster recovery, to realize smooth fast growth, we have to expand domestic demand, especially need to drive consumption, make our economic growth mode by exports widening change into domestic demand. The Trade-in policy is put forward in this special background, it carried the mission of driving consumption and stimulating the economy development, and the same time, ensuring that economic development and social environment in coordination. The implementation of the Trade-in policy is the inevitable result of social development, is in line with the best interests of the people.This article adopts the qualitative research and the method of combining quantitative research. Firstly, according to the research characteristics of this paper, we let the Trade-in policy be a starting point, and set a model to analysis how the Trade-in policy influence the durable goods supply chain; Secondly, analysis the necessity and conditions of taking the Trade-in policy; This two aspects is belong to qualitative analysis, aiming to show that the Trade-in policy is how to influence each participating subject. Lastly, through an numerical tests, analysis each variables is how to influence every participation body, this part is belong to quantitative analysis, aiming to use data to prove the Trade-in policy is how to influence each participating subject. This paper’s mainly work and research conclusions are as follows:On the one hand, based on manufacturers theory and the consumer theory, only when the reservation price of consumers is higher or the units recovery cost of Trade-in is lower, and the contract parameters take specific value, the Trade-in contract can effectively optimize supply chain, realize a dynamic multi-win situation, at this time the product manufacturer will be active in the Trade-in contract execution. On the contrary, the product manufacturer will not be active in the Trade-in contract execution when the reservation price of consumers is lower or the units recovery cost of Trade-in is higher, as a result the Trade-in policy cannot be effective execution. On the other hand, based on the government behavior, manufacturers theory and the consumer theory, we concluded that in certain conditions, the government would like to support the Trade-in policy, that will stimulate consumers buy new products, at the same time, manufacturers actively recycle old product and social environment get reasonable protection, contributing to the achievement of economic construction and social environment in coordination.