Study On Coordination Of Closed-loop Supply Chain Based On Reverse Channel Selections

The shortage of resources and environmental pollution has become a threat to the survival and development of humans. Closed-loop Supply Chain has the advantages of saving resources and reducing environmental pollution, which have aroused the concern of business community and research institutions. Closed-loop Supply Chain coordinate developed on the basis of traditional Supply Chain coordinate, of which the hot research area is the coordination of the supply contract. Because of the double marginalization caused by the decentralized decision, the profit of the whole supply chain could not be maximized. In the Closed-loop Supply Chain, the models are more complex, the double marginalization is more outstanding. So, it is more important to coordinate the Closed-loop Supply Chain based on the supply contract so as to maximize the profit of the supply chain.In this paper, using Stackelberg game, the changed revenue-cost sharing contract and two-part tariff, the coordination of Closed-loop Supply Chain of different reserve channels are studied. The main contributions are as follows:First, we summarized the Closed-loop Supply Chain, introduced the game theory and supply chain contract, and then a changed revenue-cost sharing contract is put forward on the basis of the traditional revenue sharing contract.Second, the coordination of the closed-loop supply chain in which there is only one recover channel is studied. Profits are analyzed in both centralized and decentralized decision-making model. Because of the double marginalization caused by the decentralized decision, the profit of supply chain is fewer than that in centralized decision-making model. So we put forward a changed revenue-cost sharing contract to coordinate the closed-loop supply chain and prove its correction using numerical example.Third, the closed-loop supply chain model of double recover channels are put forward. Because of the interaction of two recover channel, the profits of manufacturer will be reduced after using the changed revenue-cost sharing contract, which will result in scraping of the contract. To resolve the problem, two-part tariff is advanced, in which manufacturer can acquire a regular proceeds before comply with the contract.In the last chapter we summarized the whole article, indicated the shortcoming of this research and the main work area of further study on supply chain.