Game And Control Inside A Closed-loop Supply Chain Based On New And Remanufactured Products With Price Difference

Now the products are changing and the customers’ personality demand isincreasing day by day, the life cycle of products is much shorter than it used to, andproducts always are abandoned in advance, the product recycle and reuse is morepopular than ever. Now, the recycle and reuse method “raw materials-products-newmaterials-products” is becoming a main way to solve the resource and energy crisis.This paper based on the former research on closed-loop supply chain, usinggame, chaos and complexity theory, system dynamics, building models that the thirdand the retailers recycle the waste products, to study the market stability, the profits,and so on. Using Matlab to do numerical simulation, analyzing the complexity andchaos characters of the system, to provide theoretical and practical guidance toclosed-loop supply chain, and the main contents and innovative points are as follows:1. It extends the research method of closed-loop supply chain market behavior.Most scholars have been only using game theory to study closed-loop supply chain,and only study one period decision. This article used game theory, chaos andcomplexity theory and system dynamics together, though multi-period to study themarket stability of the closed-loop supply chain.2. It extends the model of closed-loop supply chain. In the past, the closed-loopsupply chain model most based on one manufacturer, one retailer or one recycler. Thisarticle builds two kind closed-loop supply chain models: one consists manufacturerand two recyclers, and the recyclers recycle the waste products; the other consistsmanufacturer and three retailers, and the retailers recycle the waste products.3. In this paper, the price and quantity adjustment parameters are introduced toboth of the two different closed-loop supply chain models. Throughanalyzing thechaos and profits, we know that chaos results in profits decrease. How to increaseprofits, and how to control the system chaos, we study those questions to guide theenterprise to gain maximum profits.