Research On Benefits Coordination Of Closed-loop Supply Chain Based On Different Recycle Modes

With the increasing requests of social sustainable development, people andcompanies are paying more and more attention to environmental problem. On onehand, business managers need to face the global market, cooperate with other relatedmembers, in order to gain higher earnings. On the other hand, recycling ofused-products not only can reduce wasting of resources, but also establish a goodsocial image.Firstly, benefit coordination problems of supply chain and recycling modes ofused-products were analyzed. Secondly, closed-loop supply chain which including amanufacturer, two retailers and a third-party was established, then in situation ofdecentralized and centralized decision making, game theory was used to discuss thebenefit coordination problem among the manufacturer, retailer1, retailer2and therecycler. The three recycle modes were the retailer, manufacturer and third-party whodominated the recycle. Then, the different results were comparative analyzed. Lastly,numerical example was given to verify the feasibility and veracity of the models.Research results show that:(1) Manufacturer gains more when retailers weredecentralized decision making, especially when the third-party lead the recycle.(2)Retailers benefited from their cooperation, especially when the retailers lead therecycle.(3) The benefit of the recycler was independent of the retailers’ decisions.(4)The income of the whole supply chain is optimal when the manufacturer andthird-party lead the recycle, especially in the third-party recycling mode. However,the benefit of the whole supply chain was influenced by the market capacity when itwas the retailers that lead the recycle.