Research On Pricing Model Of Closed-loop Supply Chain Considering Government Incentives

With development of economic globalization, how to keep balance betweenenvironment protection and economy development is growing to be a global issue. Inorder to cope with this, researchers at home and abroad have studied closed-loopsupply chains one after another to coordinate the relationship between economicdevelopment and environmental protection. The governments also starts to concernenvironment and carrying out encouraging measures to protect it. For example, theyencourage companies to recycle waste by rising waste’s price.Based on the above background,this article, taking both the closed-loop supplychains and government encouraging policies into consideration, uses the methodcombined qualitative analysis and quantitative analysis to do modeling and analysisabout price-setting on closed-loop supply chains incented by government. To meet thedeterministic demand and stochastic demand on the market, the article buildsclosed-loop supply chain pricing model under centralized decision-making andclosed-loop supply chain price-setting models with three different recycling channelsunder decentralized decision-making. By using simulation, it comes to a conclusion:The efficiency of Supply chain in a centralized decision-making higher than that indecentralized decision, and the best recycling channels is retailers’,the encouragingpolicy carried out by government can improve the recycling rate of waste and increaserevenue for the individual and whole in supply chain.Moreover,the more encouragingpolicies,the more expected profits will be achieved in recycling and supplychain.Finally, this paper analyzes the waste battery recycling in the company ofXinpeng, and then applies the model to the closed-loop supply chain of waste batteryrecycling in the Xinpeng company,the results improve the status that low recoveryand confusion of recycling channels.