Study On The Coordination Of The Reverse Supply Chain With The Effort Of The Third-party Collector

The main purpose of the paper is analyzing the importance of coordination contractsand incentive mechanism in the reverse supply chain and designing proper coordinationcontracts. To analyze the coordination of the reverse supply chain, the paper includesoptimization theory,game theory,principal-agent theory and contract theory, combines withmodel and charting analysis, the bond of the qualitative analysis and quantitative analysis.First, under the symmetric information, a reverse supply chain model is built in viewof the fact that product quantity of returning depends on collection effort level andcollection prices; and the coordination of expense sharing contract and price subsidiescontract are introduced to coordinate the reverse supply chain, both of them avoid theprofit loss from the reverse double marginalization, then the paper gives the analysis of thereverse supply chain model’s sensibility though a numerical example.Then, under the asymmetric information, a reverse supply chain model in the case ofthe collection effort of the third-party is built with principal-agent theory. And the systemis coordinated after meeting the participation constraints and incentive compatibilityconstraint conditions.Finally, the paper conbines the background of our country’waste electrical appliancescollection and the example of Changhonggerun Company, specific to the coordinationproblems of our country’waste electrical appliances collection,suggestions about how todevelop the waste electrical appliances reverse supply chain are put forward.