Analyzing Production Strategy Of Closed-loop Supply Chain In Uncertainty Of Consumer Preferences

With the continuous developing in industrialization and urbanization of society,It promoting the rapid economic development and social progress,while it also contributing to the shortage of resources,environmental pollution,climate change and other issues.It has become a common problem human have to face that How to structuring a society where realize recycling economy,ecological civilization and low-carbon development.Remanufacturing,as a effective measure to implement green manufacturing and sustainable economic development,it is not only a high-level process of resource recycling process,but also an important direction of advanced manufacturing technology.The rapid development of the remanufacturing industry,which is based on old product recycling and reusing,is limited by the environmental awareness and the awareness of remanufacturing products of consumers.How to optimize the remanufacturing decisions of closed-loop supply chain members from the demand characteristics has got more and more attention from enterprise and academic circle.This article formulates a downstream closed-loop supply chain including manufacturer(as the leader),retailer,consumers and a upstream closed-loop supply chain including supplier,manufacturer(as the leader),consumers,where consumers preferences are not sure.In the downstream closed-loop supply chain,manufacturer produce new as well as remanufactured products,whereas retail is responsible for wholesaling and selling them.In the upstream closed-loop supply chain,manufacturer is responsible for the production and sale of new products and remanufacturing products,whereas supplier provide raw material of new products.In stable cases,this article presents the functional formula of the optimal manufacturing pricing decisions and the expression of sensitivity analysis.The results show that in both models,when the cost of new products is significantly lower than that of remanufactured ones,manufacturers choose to produce new products only.When the difference between cost of new and remanufactured products is moderate,manufacturers tend to produce both new and remanufactured products,and in some regions,production of new and remanufactured products is proportional to each other.When the difference between cost of new and remanufactured products is enormous,their production and sale tend to stop.Also,this article analyzes the effects of varying cost of new and remanufactured products and the recycling rate on pricing decisions of supply chain members,explore how the complementary effect and substitution effect are work and what's the result.This article contributes to the management of supply chain menbers' remanufacturing decisions and also provides advice on how governments can guide consumer preferences.