Research On Automotive Parts Recycling Benefit Model Analysis

In recent years, with the vigorous development of circular economy, waste products recycling issues have been given a lot of concern. Under the increasingly competitive market conditions, products life cycles are getting shorter, then, how to improve the limited availability of products in product life cycle has become the problem of business concern. For different recycled products, manufacturers choose a different ways of recovery under recycled product durability, two approaches are focused in this article:one is further manufacturing of products, which not only saves the demand on raw materials, but also reduces environmental pollution, and brings in tremendous social benefits; Second, the products recycled are sole in the secondary market after simple handling, so that consumers can buy second-hand parts in the secondary market, the performance of second-hand items after restored can even exceed new products, with the price only50%of new ones.This paper is based on the automobile parts industry, in2009, China has become the largest country of automobiles, mass production means mass consumption, and mass consumption leads to a large number of abandoned, therefore, parts recycling of scrapped cars has become one of the key industries to develop circular economy. In countries with developed automobile industry,like EU, North America and Japan, professional auto recycling industries have already been established, having great economic benefits. Yet our country is relatively late to start, and we need to be fully aware of the importance of recycling of the auto industry, and put it into practice.Today, consumer utility is an internal factor to drive the buying behaviors of consumers, with recycling products, re-manufacturers have to pay great attention to product pricing to deal with consumer utility. In short, consumers and re-manufacturers are two bodies with conflicts of interest, how to get an balance is the focusing of this paper. Based on maximization of consumer utility to research the manufacturer’s revenue model, specific contents are as follows: Firstly, establish a simplified model of recycling economic applicability under the assumption that recycled products are handled in a single method by manufacturers, and here mainly about two single approach; solve the model using software and make the comparison chart of the manufacturer’s earnings under the two kinds of single processing mode.Secondly, in the second part the two approaches are mixed in a single recycling activities, and a numerical example is solved. Make the sensitivity analysis of the choice of coefficients, and attain some theoretical results to provide recommendations reference for the operation of enterprises.