Research On Closed-loop Supply Chain Decision-making Considering CSR And Quality Effort Under Different Recycling Modes

Nowadays,people’s living standards are gradually improving.While enjoying the convenience brought by products,they ignore the pollution to the environment to some extent.Disposable products discussed in this paper are often discarded after use,which has a certain recycling value,and some disposable products without proper treatment will cause more serious pollution to the environment.The continuous occurrence of waste pollution cases,let people gradually pay attention to this problem,recycling has become one of the important means to deal with this problem.The resource constraints of small and medium-sized enterprises and the demand for corporate social responsibility in the development strategy make how to reduce the average production cost and improve profits by choosing the recycling mode become an important topic.In the process of product production to sales,corporate social responsibility and quality efforts are two dimensions that consumers can directly feel,namely,the contribution of enterprises to society and the product itself,both of which are indispensable to supply chain members.In order to realize the synchronous and coordinated development of society and economy,enterprises begin to fulfill Corporate social responsibility(CSR),which means that enterprises assume corresponding responsibilities to internal employees and external aspects(such as environment and public welfare).For enterprises,quality efforts are an important factor in determining product sales,while CSR exerts an indirect impact on sales through influencing corporate reputation.Therefore,considering corporate social responsibility and quality efforts at the same time can not only help enterprises improve profits,but also reduce environmental pollution,energy consumption and harmful substance emissions,so as to mitigate the negative impact of industrialization on the environment to a certain extent.In the above context,the following three recycling modes are discussed,namely the manufacturer,retailer and the third party recycling mode,so that the manufacturer and the retailer respectively undertake the corporate social responsibility,and the manufacturer undertakes the quality effort.Using consumer surplus to measure corporate social responsibility,this paper analyzes and compares the equilibrium results of the above six situations,namely wholesale price,retail price and manufacturer profit.The results show that:When the manufacturer undertakes the quality effort,whether it is the retailer undertaking the CSR or the manufacturer undertaking the CSR,manufacturers can choose to recycle themselves or retailers,and the profits(or social benefits)are the same.When different supply chain members respectively undertake CSR,manufacturers’ profits under the three recycling modes increase with the increasing attention to CSR.Regardless of whether manufacturers or retailers undertake corporate social responsibility,the characteristics of wholesale prices always meet the following relationship,that is,the retailer recycling mode is larger than the third party recycling mode,and the manufacturer recycling mode has the lowest wholesale price.The change trend of wholesale price is opposite when different subjects undertake CSR.When retailers undertake CSR,the wholesale price increases with the increase of CSR and decreases with the increase of recycling rate.When manufacturers undertake CSR,wholesale prices increase with retailers’ CSR awareness and recycling rates.Regardless of whether manufacturers or retailers undertake CSR,the relationship between retail prices is always that the wholesale price under the recovery mode of the third party is larger than the retail price under the recovery mode of manufacturers and retailers.At the same time,with the increase of retailers’ CSR attention and recycling rate,the retail prices under the three recycling modes fell.According to the above research results,when the manufacturer undertakes quality efforts and the manufacturer or retailer undertakes corporate social responsibility,the manufacturer’s income is maximized and the consumer’s expenditure is minimized,which is win-win for both sides.In the case discussed in this article,the manufacturer has the choice of retailer recycling or recycling itself.