Pricing Research Of Closed-loop Supply Chain With Uncertain Recycling Quality Under Government Subsidy

In the process of the implementation of remanufacturing closed-loop supply chain,one of the most important step is the product pricing,pricing strategy is closely linked to the benefit of the closed-loop supply chain and the interests of the participating enterprises in closed-loop supply chain.The problem of pricing decision of closed-loop supply chain needs to consider the government subsidy factor.However,the recycling and remanufacturing of closed-loop supply chain enterprises has a large positive externality,which often leads to insufficient motivation for enterprises to engage in this activity.In view of this,for the purpose of saving resources and protecting the environment,most governments have formulated subsidy policies to encourage recycling and remanufacturing activities.In addition,among important industrial sectors in China,due to the characteristics of high reliance of energy resources and severe environmental load,the cement industry has become the focus of social issues such as energy,resources and environment.The energy conservation and emission reduction of cement industry is directly related to the implementation of China's sustainable development strategy.Therefore,it is necessary to take cement enterprises as an example,studying the pricing decision of closed-loop supply chain under government subsidy.The main work of this paper is as follows:(1)A closed-loop supply chain pricing model with uncertain recycling quality is established under the government subsidy for recycling of used products.In this paper,the government recycling subsidy is introduced into closed-loop supply chain pricing decision,based on the homogeneity of new products and remanufactured products,considering the uncertainty of recovery quality,a closed-loop supply chain pricing decision model is established based on profit maximization,and the effect of government subsidy setting and uncertainty of recovery quality on closed-loop supply chain pricing decision is studied.The uncertainty of recycling quality of waste iproducts dose not be studied.In combination with the field survey data of ZaoZhuang ZhongLian cement enterprises,the pricing model is verified.It is found that in the government recycling subsidy environment,the recovery quality and quantity of waste cement products have been improved,and the utilization rate of cement enterprises has been improved.(2)Considering two subsidy ways of government subsidizing waste product recycling and remanufacturing,establishing and comparing closed-loop supply chain pricing model with uncertain recycling quality under two kinds of subsidy ways,it is found government adopt different subsidy strategies under different conditions can effectively promote remanufacturing activities.In this paper,under the condition that the recovery quality is uncertain,based on new products and remanufacturing product homogeneity conditions,comparatively analyzing the influence of the government subsiding recycling of waste products and the remanufacturing of two kinds of subsidy ways on the pricing decision-making of closed-loop supply chain.Existing studies all consider the government separately subsidizing waste products recycling or remanufacturing,and few involve comparative analysis of the two.In combination with the field survey data of ZaoZhuang ZhongLian cement enterprise,the pricing model is verified.The research shows that both subsidy ways can promote the recycling and remanufacturing of cement enterprises,but the subsidy effect of the two is different under certain conditions.(3)Considering the difference of consumer awareness,the differential pricing models of closed-loop supply chain under different subsidy ways are established.Under different subsidy ways,based on the heterogeneity of new products and remanufactured products,and the fact that remanufacted product recognition of consumers is lower than the new product,establishing pricing model of closed-loop supply chain,the influence of different subsidy and consumer recognition on the differential pricing of closed-loop supply chain is studied.In reality,consumers can distinguish between new products and remanufactured products,and the degree of recognition is different,so the homogenous hypothesis no longer conforms to the reality.In combination with the field survey data of ZaoZhuang ZhongLian cement enterprise,the pricing model is verified.The study found that government subsidy and the improving recognition of cement remanufactured products both can lead to the improvement of remanufactured products demand.