Research On The Incentive Mechanism Of Remanufacturing Closed-loop Supply Chain Based On The Government Macro-control Behavior

With the rapid development of the global economy as well as adverse changes inthe environment for sustainable human development and utilization of naturalresources caused, and the emergence of the concept of circular economy andsustainable development, it is necessary to concern how to deal with the the productsin the life cycle of end. For the recycling and reuse of waste products andremanufacturing, the enterprise itself must increase investment in this area,and tosome extent, it should also be considered to increase the role of government inpromoting the recycling of waste products processing enterprises and reduce theimpact on the environment aspects. View of this, in a closed-loop supply chainenvironments, we studied that the enterprise may how to take their business decisionswhen government take a different incentive mechanisms to promote the enterprisesfor recycling and reuse of waste products, as well as how the government incentivesinfluence the enterprises decisions.First, we consider that in a remanufacturing closed-loop supply chain is consistof a manufacturer and a supplier, the government can subsidies for the recycling formanufacturers and reuse of waste products as well as tax if the manufacturerspurchase of new parts and components to the suppliers. In this case, we establish themanufacturer and the supplier’s profit function considering the government subsidiesand tax strategies, then comparative analysis the profit of the manufacturer’s andsupplier’s, and the manufacturer’s production quantities of new products and theactual recovery ratios and the number of recycling waste products between thegovernment subsidies and tax incentives policy and no government policy. In themeantime, we give the government’s encourage policies and it’s impact on theclosed-loop supply chain enterprises.Secondly, we also consider that in a remanufacturing closed-loop supply chain isconsist of a manufacturer and a supplier, the government stipulate the ratio or thenumber of recycling collection. In this case, we establish the manufacturer and thesupplier’s profit function considering the government stipulate the ratio or the numberof recycling collection, then comparative analysis the optimal profit and decisions ofthe manufacturer’s and supplier’s between the government stipulate the ratio or the number of recycling collection and no government policy. In the meantime, we givethe government’s policies and it’s impact on the closed-loop supply chain enterprises.Finally,we consider tha if there is a third-party recycling company in theremanufacturing closed-loop supply chain, the government can just give subsidies andtax only to the manufacturer, or give subsidies to the third-party recycling enterpriseand tax the supplier. In this case, we establish the manufacturer’s, the supplier’s andthe third-party recycling enterprise’s profit function, then comparative analysis themanufacturer’s, the supplier’s and the third-party recycling enterprise’s optimaldecisions between the government give subsidies and tax only to the manufacturer,and give subsidies to the third-party recycling enterprise and tax the supplier. In themeantime, we give the government’s policies and it’s impact on the closed-loopsupply chain enterprises..