Research On Option Coordination Contract In Waste Reverss Supply Chain

Recent years, various types of electronic and electrical products have quickly swept the world, and brought revolutionary changes in areas such as communication, entertainment, transportation, education and health care, there is no denying that the new technologies have given consumers good products and good service experiences. However, the problem of electronic waste will be a great threat to our environment if they are not well disposed. Therefore, we must consider how to find a balance among environment, economic growth and social benefits.Since1990s of the20th century, the rapid development of supply chain has made supply chain management become a popular subject of academic study. An important part of supply chain management is how to coordinate all the components in the supply chain, since supply chain is an entirety comprised of different stakeholders. After reading great quantities of popular literatures, this paper finds that now the research on the forward study of supply chain coordination mechanism has been very mature. As the concept of sustainable development being proposed, the research on recycling of wastes become popular, but the research on the coordination mechanism of reverse supply chain is still in its infancy stage. Therefore, the thorough analysis and comprehensive research on reverse supply chain management is of great theoretical and practical significance.According to the background above, after reviewing related literatures, modeling, simulation methods, the main research and findings of this thesis are as below:First, Reviews are made on present situation of reverse logistics, electronic wastes, as well as option contract and revenue sharing contract.Additionally, based on the interpretation of Regulation on the Management of Waste Electrical and Electronic Equipment Recycling Ordinance Act, an E-waste recycling system is built. The system consists of collectors, disassemblers and fund center. In this system, logistics, capital flow and information flow move between collectors and disassemblers.Furthermore, after comparing the differences between collectors in dominant position and dealers in dominant position, with waste collectors in dominant position and dealers in dominant position respectively, I analyses the option coordination mechanism and revenue sharing contract in a two-echelon supply chain. Models built for this situation shows the relationships among the decision variables and decision scenarios in non-option contract, option contract, revenue sharing contract and combination of option contract and revenue sharing contract.Last but not least, with market research and part of the market data, I conduct Mathematica software simulation. The simulation shows that reasonable contract coordination can increase the overall profitability of the supply chain, and at the same time, it makes clear the relationship of decision variables, thus providing basis for decision making.