Research On Pricing Strategy Of Closed-Loop Supply Chain Considering Customer’s Return Willingness And Quality Of Recycling Products

Environmental problems have triggered concern of the public and have received extensive attention. Therefore, green products are increasingly becoming the best-seller. In the meanwhile, with the rapid development of cyclic economy, studies of closed-loop supply chain are more advanced. However, at present, an outstanding issue faced with remanufacturing process of close-looped supply chain is that the recycling phase of the used products can be influenced by various complex factors. That is to say, it contains too much uncertainty such as the quantity and quality of the returned products, which bring serious challenges to recovery and recycling program of enterprises. Therefore, how to lower down the uncertainty during the recycling process has become an important issue causing common concerns of business and academic circles.Building on the abovementioned problems, this essay refers to numerous literatures. Through thoroughly analyzing, it obtains a conclusion that the quantity of the returned products is not only related to the collectors but also the reservation incentive of customers,in other words,the customers’return willingness. Specific research problems and contents are as follow:The first chapter introduces the background and significance of the research as well as the main idea of the whole essay. What is more, the logical framework is provided.In order to form a foundation for the subsequent research, several basic concepts and the related theories of closed-loop supply chain are provided in the second chapter. At the same time, this chapter summarizes and concludes previous studies for rationalizing the development track of relevant works.The third chapter considers the sense of recovery willingness of customers.The expected price of customers for one unit of used product described by uniform distribution,is applied to model the customers’return willingness. It takes advantage of Stackelberg game theory to set up business profit model and utilizes pertinent optimization theories to search for the optimal solution of the model. Furthermore, this chapter also conducts theoretical analysis and simulation testing on the results.On the basis of the third chapter, the fourth chapter takes the quality level of returned products into accounts because the quality of materials can be uneven due to different service time and conditions. Moreover, this chapter analyzes the influence of quality level of returned products on the pricing decision of closed-loop supply chain and conducts sensitivity testing on relevant parameters, which enables the results become more suitable for the practical situation, and finally provides scientific guidance to managers of government institutes and enterprises.The fifth chapter summarizes the whole essay and proposes several research direction in the future.