Effect Of Joint Purchasing On Recovery Strategy In Remanufacturing Closed-Loop Supply Chain

With the development of circular economy and the pervading of the responsibility-extending concept, more and more enterprises take recycle and remanufacturing as their development strategy. Remanufacturing strategy could improve the business environment, lighten the pressure of resources shortage and improve the image for enterprise at the same time. From the perspectives of dominant retailer and carbon emissions constraints, this paper discusses the effect of joint procurement on closed-loop supply chain recovery strategy.Firstly closed-loop supply chain model with competitive retailers is established. By using backward induction method, retail price, wholesale price, recycling ratio and profits of channel members in two purchase patterns are calculated, and those two purchase patterns are also compared. The result shows as follows:When competition strength is weak, retailers’ profits in joint purchase pattern overrun those in single purchase pattern; manufacturer’s profit in joint procurement pattern exceeds manufacturer’s profit in single procurement pattern.Secondly a closed-loop supply chain model with dominant retailer in joint purchase pattern is founded. The analysis shows when the recycling effort cost is rather large or small, the recycling ratio in joint procurement pattern is bigger than it in individual purchase pattern; When the differences between those retailers are obviously big, the weak retailers are prone to purchase in joint pattern, and the profit of the supply chain in joint purchase pattern exceeds it in single purchase pattern; When the dominant retailers possess strong bargain ability, these two retailers gain more profit in joint purchase pattern than in single purchase pattern.Lastly established is a closed-loop supply chain model with competitive retailers in joint purchase pattern under carbon emissions constraint. The influences of carbon emissions on purchase pattern are compared. The analysis shows, when the carbon emissions constraint is larger than a certain value, the manufacturer’s profit with carbon emissions constraint is larger than it without carbon emissions constraint; When the substitutive coefficient is large, the manufacturer’s profit in joint purchase pattern is larger than it in the single purchase pattern under the carbon emissions constraint.