Study On Collection Incentive Mechanism Of The Closed-loop Supply Chain Considering The Manufacturers’ Competition

Since the industrial revolution, Electronic waste has become the fastest growing garbage in the world, And due to the shortage of social resources and the necessity of protecting the environment, all countries give highly attention to the recovery of waste electrical and electronic equipment(WEEE). And it has become an important issue that how to recycle and deal with the WEEE, which concerns our social, economic, and environment sustainable development. The traditional supply chain can not meet the requirement of establishing resource saving and environment friendly society, while the closed-loop supply chain(CLSC) is practical application for this call and the government plays indispensable role.In this paper, we use the method of dynamic game to study decision problems of WEEE CLSC where manufacturers take charge of recycle and remanufacturing under circumstances of manufacturer competition. We discuss the three mechanisms, namely the tax – subsidy mechanism, the quantity discount mechanism and the return deposit mechanism. And we design three models for above mechanisms respectively, they are CLSC decision-making model in the case of manufacturers monopoly circumstances(benchmark model), CLSC decision-making model of government implementing mechanism on manufacturer under the circumstances of manufacturers competition, CLCS decision-making model of government implementing mechanism on recycler in the case of manufacturers competition, On this basis,we calculate, compare and analyse optimal decision results of the three mechanisms. Research shows that: when government implements the tax-subsidy mechanism, with the improvement of unit subsidy,recovery rate and recycler’s profit will increase gradually, if government implements the tax-subsidy mechanism on manufacturers, profits of manufacturers who process recycling and remanufacturing will increase gradually, if government implements the tax-subsidy mechanism, recycler, recycled and remanufactured manufacturer’s profits will decline gradually; When government implements the quantity discount mechanism, with the increase of price discount rate, recovery rate will decline gradually, profits of recycler and manufacturers who recycle and remanufacture WEEE will first decrease and then increase; When government implements the return deposit mechanism, with the rise of unit deposit, under the circumstances of manufacturers competition, recovery rate、recycler’ profit and recycled and remanufactured manufacturer’ profit will increase gradually, but in the case of the manufacturers monopoly circumstances, they will keep constant. In addition, we can advance the recovery rate by increasing the advantage of remanufacturing cost.