Research On Coordination Pricing Mechanism Of Closed-loop Supply Chain Under Government Award Behavior

With the rapid development of economy and science and technology,resources are exhausted and products are replaced more and more frequently.Consequently,a large number of waste products are produced,which aggravates the environmental pollution and destroys the ecological balance.In order to protect the environment and save resources,the recycling and reuse of wastes has attracted more and more public attention and recognition.With the increasing awareness of environmental protection of consumers and the gradual improvement of national government’s laws and regulations on environmental protection,how to change the traditional extensive economic development mode,reduce development costs and slow down the environmental damage caused by waste products,the development of green economy has become the focus of attention of scholars at home and abroad.Traditionally,the supply chain refers to the positive supply chain.The mode of operation is that the manufacturer processes raw materials into commodities-retailers-customers-waste products and discards them.The process of recycling and reusing waste products is the reverse supply chain.Closed-loop supply chain combines forward supply chain with reverse supply chain and becomes a whole cycle.Closed-loop supply chain can not only effectively reduce the manufacturing cost of enterprises,improve the profits of enterprises,but also be more conducive to the development of green economy,saving resources and protecting the environment,and enhance the positive image of enterprises.In order to enhance the strength and enthusiasm of enterprise recycling,government departments have also taken some economic measures.Based on the research results at home and abroad,such as the connotation of closed-loop supply chain,closed-loop supply chain under government incentive behavior and enterprise pricing strategy of closed-loop supply chain,this paper studies the coordination pricing mechanism of closed-loop supply chain under government incentive behavior,extracts the model of single manufacturer and single retailer,and establishes a concentration dominated by manufacturer using game theory(Stackelberg equilibrium).By comparing the profit of closed-loop supply chain with that of decentralized decision-making model,it is concluded that the overall profit of centralized decision-making system is 25% higher than that of decentralized decision-making system.Then government incentives are added to the model,and the models under centralized and decentralized decision-making with or without government incentives are compared.It is concluded that whether centralized or decentralized decision-making,government incentives can effectively improve enterprise recovery enthusiasm and increase the overall system profit of closed-loop supply chain.Finally,due to the dual marginalization effect of decentralized decision-making,this paper will use revenue-cost sharing contract to coordinate the efficiency loss of closed-loop supply chain system.Based on the above conclusions,this paper draws the following enlightenments:(1)through information sharing,centralized decision-making can increase the common profits of enterprises in the closed-loop supply chain and maximize profits;(2)Increasing the degree of government incentives can effectively improve the enthusiasm of enterprises to recycle,promote the development of recycling and reuse industries,change the mode of economic development in China,and achieve green economy.The trend of economic development.The main contribution of this paper is to combine the government incentive behavior with the pricing model of closed-loop supply chain enterprises,use game theory to propose centralized and decentralized decision-making models,and use revenue-cost sharing contracts to coordinate them.