Analysis And Application Of The Pricing And Servicing Game In The Closed-loop Supply Chain

With the development of the economy and technology, people are expected to have a higher standard of life, putting more and more products of great value to waste. Recycling these products could make full use of the resources, thus creating an additional value for the enterprise. Besides, recycling will promote sustainable development by creating a better environment.Under the background of Circular Economy, we build a model of a Closed Loop Supply Chain(CLSC) which consists of one manufacturer and two retailers, and analyze a dynamic game of multi-variable decision. The paper analyzes the local stability of the Nash equilibrium for the dynamic system and makes a numerical simulation with the Matlab software in order to reflect the system state more intuitively. After detailing the harm of the chaotic system, the paper presents a chaos control method and expounds its economic meaning. The main contents and innovation points are as follow:1. This paper constructs a closed-loop supply chain system with one remanufacturer and two retailers which have both competition and cooperation relationship, analyzes the pricing game which the remanufacturer leads the game. The paper calculates the equilibrium price and analyzes the local stability of the equilibrium solution. Based on different marketing scales, the size of the market can influence enterprises' profits differently.2. In fact, the retailers will provide some service during the process of the recycling, such as Onsite Services and Free Consultation. This paper includes service into the recycling model, to form a mixed model based on game theory. After finding an equilibrium price and a proper service standard, we analyze the local stability in this model. To confirm whether it can earn money when adding the service, this paper gives detailed analysis and argument, and concludes that adding the service could make the retailer reach the largest profits.3. The paper uses the complex system theory to analyze the dynamic game of the CLSC. The game where the three vendors adjust their decision variables all the time can be treated as a dynamic system. This paper elaborates the system process from stability to chaos and the adverse effect i.e. Profit Bifurcation, Profit Time Series Volatility and Initial Condition Sensitiveness. In this way, the adoption of Delay Feedback Control for a chaos state has its effect. The paper provides theoretical and practical guidance to the market of waste products of CLSC.