Pricing And Recycling Channel Decision Of Closed-loop Supply Chain Under Government Subsidies

With the large consumption of resources and the rapid development of circular economy,closed-loop supply chain,as a combination of sales and recycling,plays a decisive role in alleviating the resource crisis and promoting sustainable development,and has become a focus of attention of the government,business,academic and others.To this end,governments have implemented government subsidy strategies to reduce waste of resources and promote their circular development.Enterprises also pay more recycling efforts to promote the growth of their own profits and enhance their corporate image.Therefore,the study of closed-loop supply chain pricing decision considering recycling efforts and government subsidies can not only enrich and develop the closed-loop supply chain management theory system,but also provide more guidance for the government subsidies policy and the rational formulation of enterprise pricing decision.This paper considers recycling efforts and government subsidies,and constructs four closed-loop supply chain decision models under manufacturer-led and retailer-led respectively.The first model is centralized;the second one is the manufacturer's self-recycling,and the government subsidizes the manufacturer;the third one is the retailer responsible for recycling,and the government subsidizes the retailer;the fourth one is the third party responsible for recycling,and the government subsidizes the third party.Based on the model analysis,the effects of government subsidy on decision variables and profits of nodal enterprises are discussed.On this basis,the optimal recovery mode and subsidy mode under the same leadership,the optimal supply chain dominant mode under the same recovery and subsidy mode,and the advantages and disadvantages of centralized and decentralized decision-making are further compared and obtained.In summary,the results and innovations of this study are as follows:(1)Centralized decision-making is better than decentralized decision-making;(2)leaders of closed-loop supply chain can make sufficient profits by setting optimal prices based on their leadership.When manufacturers are in the lead,manufacturers can increase orders by lowering wholesale prices,so that their profits outweigh those of retailers.When retailers are in the lead,retailers can increase the market sales by its priority pricing power,so that its profit is greater than manufacturers;(3)In the closed-loop supply chain,the optimal recycling mode dominated by the manufacturer is the retailer responsible for recycling,while the retailer-led optimal recycling mode is responsible for recycling by the manufacturer,and the third party is responsible for the recycling mode for the enterprise and consumers are unfavorable;(4)With the increase of government subsidies,product recycling and demand,supply chain member profits and total profits are rising,retail prices are falling,but under the leadership of manufacturers,government subsidized retailers can better reflect the value of subsidies,under the leadership of retailers,government subsidized manufacturers are more able to balance the recovery of revenue and subsidy expenditure costs;(5)when the manufacturer is responsible for recycling,the closed-loop supply chain performance is best under the retailer's leadership;when the retailer is responsible for recycling,Closed-loop supply chain performance is highest under the leadership of the manufacturer;when the third party is responsible for recycling,the manufacturer's leading market and the retailer's leading market will have the same effect,but the manufacturer's profit and retailer's profit are optimal in their own leadership structure.The innovation of this study is that,considering the recyclers' recycling efforts and government subsidies,four different recycling modes are constructed,which are manufacturer-led and retailer-led,respectively,and the impact of government subsidies on the pricing decision of closed-loop supply chain in the four subsidy modes is discussed.