Pricing Strategy Of Remanufacturing Closed-loop Supply Chain Under The Corporate Social Responsibility

The rapid increase in waste products has led to the problem that of resource shortage and environment pollution becoming more and more serious.Therefore,enterprises how to effectively fulfill corporate social responsibility and properly dispose of the discarded products in the market is an important problem demanding prompt solution.Remanufacturing,as a recycle-based and economical model of production,not only can prolong the life cycle of discarded products,but also restore the value of its use,and achieve the goal of energy conservation,material saving and environment protection.Accordingly,under the dual drive of CSR and economic interests,many enterprises have started to implement closed-loop operations to recycle and remanufacture waste products while producing new products.However,in the process of fulfillment of social responsibility and recycling discarded products on the market,not all used products can be remanufactured.For some products which are severely damaged and can not be remanufactured,they need to be recycled and environmental treatment.Undoubtedly,it will increase the operating costs of enterprises.On the other hand,the performance of CSR will enhance the corporate brand image and reputation,thereby enhancing the consumer's product value evaluation.Therefore,in the both increase of product value and operating costs,how to balance the relationship between CSR and economic benefits is particularly important.To this end,this article from the social responsibility point of view,using the game theory and optimization theory,to study the different pricing strategy of new and remanufactured products under different market background.(1)Under monopolistic conditions,a two-stage dynamic pricing study considering CSR.A two-stage pricing model for single monopoly manufacturer recycling and remanufacturing is established.The optimal pricing strategy is obtained.And the influence of degree of recycling effort and availability rate of waste products on product prices and demand is theoretically analyzed.The factors that affect the degree of manufacturer's recycling effort are also discussed.(2)Under competitive environment of remanufacturer and manufacturer,a two-stage dynamic pricing study considering CSR.In this model,manufacturer isonly responsible for the production and sale of new products;remanufacturer recycles and remanufactures waste products at the end of first stage,and put the remanufactured products into market in the second stage,forming into a competitive situation with manufacturer.The research obtains the optimal pricing decision of manufacturer and remanufacturer.The influence of remanufacturer's performance of social responsibility on both manufacturer and remanufacturer's pricing strategy and benefits are discussed.And the factors that affect the degree of remanufacturer's recycling effort are also analyzed.(3)Under cooperate environment of manufacturer and retailer,pricing strategy of recycling and remanufacturing in considering CSR.Aiming at a closed-loop supply chain consisting of a manufacturer and a retailer,a stackelberg game model is constructed,which the manufacturer in the dominate position and taking the role of recycling.According it,the optimal strategy is obtained.The influence of degree of recycling effort and availability rate of waste products on product prices and demand is theoretically analyzed.Finally,the manufacturer's profitability from social behavior and the factors that affect the degree of manufacturer's recycling effort are also discussed.