Research On Pricing Decision And Coordination Strategy Of Closed Loop Supply Chain Based On Recycling Subsidies And Carbon Tax

Climate issues have got widely concern of the society. It seems that the development of low-carbon economy has become a general consensus to face the climate change. This consensus is also applied to the supply chain. Closed-loop supply chain as a kind of best carrier of energy conservation, how to use a closed-loop supply chain to achieve carbon emission reduction is meaningful. Therefore, in order to promote low carbon and high efficiency of remanufacture in Closed-loop supply chain, government could use the measures to give supply chain a reasonable subsidies and a rational solicit a carbon tax.To study the pricing strategy of Close-loop supply chain in the view of recycling subsidies and carbon tax should consider the difference of new products and remanufacturing products. The below issues need to be focused on:Firstly, the creation issues of remanufacturing closed-loop supply chain considering price difference between new products and remanufacturing products. The manufacturers prefer to outsource the recycling process to focus on core business. So in this study a third-party collector will be used in recycling waste products. The closed-loop supply chain is consist of a manufacturer, a retailer and a third-party collector of waste products.Secondly, pricing strategy issues for the members of supply chain. Different pricing strategies of the decentralized and centralized decision considering recycling subsidies mechanism, carbon tax mechanism and recycling subsidies and carbon taxes dual mechanism. After the comparison and discussion about different mechanism, give the conclusion that how carbon tax and recycling subsidies influence on members of closed-loop supply chain.Thirdly, the profit of whole supply chain have changed with the change of pricing strategies supply chain member developed. The pricing strategies are needed to be coordinated, and then the system loss of profits can be reduced.To focus on the above issues, by taking the supply chain theory method, game theory and the optimal value function solving method, this article create pricing strategies under recycling subsidies mechanism, carbon tax mechanism and recycling subsidies and carbon tax dual mechanism and talk about the centralized and decentralized strategies under different mechanisms. Then by creating profit sharing contract, give the solution of pricing coordination strategy to reduce the loss of supply chain. The main work and conclusion are as below:Firstly, we create the issues of remanufacturing closed-loop supply chain considering price difference between new products and remanufacturing products and establishment the different pricing strategies of closed-loop supply chain.Secondly, we make research about the supply chain members dynamic game decision-making process under different mechanisms. This paper considers the effects of recycling subsidies and carbon tax on pricing strategies of closed-loop supply chain. By using the optimal value function solving method, we got the related optimal pricing strategy and the optimal profit of supply chain member. Recycling subsidies encourage third-party recyclers recover more waste materials and higher recycling price, that all helpful to encourage the recyclers do the recycling. By using carbon tax, government increases production costs, wholesale prices and retail prices Carbon tax, making manufacturers more willing to make use of waste materials for production, and the result is that enhance collection volume and recycling price. At the same time, the volume of new products decreased.Thirdly, the result that the profit of closed-loop supply chain under centralized decision is obviously better than the decentralized decision is verified, through the quantitative analysis based on a numerical example, and the conclusion supply chain members should take coordinated measures to improve the profits of supply chain system. A simply chain coordination contract is designed in this paper. That is, the manufacturers and retailers share the profit from sales with a proportion and manufacturers and the third party share the recovery profit with a proportion. The optimal pricing strategy based on this coordination contract is put by solving the pricing model under the recycling subsidies and carbon taxes dual mechanism.