The Closed-Loop Supply Chain Contract Coordination Model Building And Application Research Based On System Dynamics

With environment-protecting consciousness and sustainable development consciousness enhancement,Closed-loop Supply Chain(CLSC) management which is the core of circular economy,become the strategy choice for enterprise development.Through the reuse of product,the most profound significance of CLSC management lies in reduce the product prices, improve the efficiency of each enterprise and whole, reduce the consumption of resources and garbage emissions of waste products,improve enterprise’s environmental performances.CLSC contract defined rights and responsibilities among members by the form of pact to coordinate bilateral cooperation through institution,this can contribute to share the risk caused by uncertainties,overcome double marginalization and enhance system operation performanceThis paper based on system dynamics (SD) method.We study the dynamic behavior of system operation on the basis of building the model of CLSC which is influenced by information asymmetry and environmental policy. To build the SD model of CLSC under the pattern of basic contract,then combine concrete example and apply Vensim to explore the impact of the contract on the CLSC and the change law of contract parameters.Research show that contract can coordinate the relationship between CLSC members effectively, improve the members at all levels and the overall benefit of CLSC.However, setting contract parameter is very important.Furthermore, in order to find a better contract coordination model we establish combination contract coordination model based on the basic contract coordination model.Studying SD model of CLSC under emergency,we found emergency seriously disturbed the normal operation of CLSC.We apply combination contract to coordinate CLSC under emergency which caused by multiple factors.research show combination contract can coordinate closed-loop supply chain emergency very well.through the quantitative analysis of the contract decision simulation results so that give each node enterprise the optimal contract strategy of coordinate to the current frequent emergencies.Expect that this research can provide useful reference to the actual CLSC contract coordination decisions.