Research On Pricing Decision Of Substitute Products In Closed-loop Supply Chai

With the development of science and technology,a variety of electronic products continue to update,resulting in the market to meet the same needs of substitutable products increased.While various electronic products bring convenience to people’s lives,waste electronic products also bring great harm to the living environment.A large number of waste electronic products not only seriously pollute the ecological environment,but also cause a huge waste of resources.In this context,the management of waste electronic products can not be delayed,and the recycling of waste electronic products is an important way to reduce pollution and waste.This paper studies the pricing decisions of substitutable products in a closed-loop supply chain.Firstly,this paper comprehensively considers the different recycling methods of waste products.A two-stage Stackelberg single-cycle game model with manufacturers as leaders and retailers as followers is constructed to study the pricing of substitutable products in closed-loop supply chains.Theoretical analysis shows the impact of recycling patterns on the pricing decisions of substitutable products in a manufacturer-led closed-loop supply chain.The results of the numerical analysis further validate the effects of price and cross-price sensitivity coefficients on optimal prices,return rates,and profits of supply chain members.The results show that the optimal price,return rate and profit of supply chain members for both substitutable products decrease with increasing price sensitivity coefficients,and both increase with increasing cross-price sensitivity coefficients.The retail price of the product,the return rate,and the profit of the retailer are greatest when the manufacturer recycles both used products.The wholesale price of the product and the manufacturer’s profit are greatest when the retailer recycles both used products.Second,this paper constructs a two-stage Stackelberg single-cycle game model with the retailer as the leader and the manufacturer as the follower.Different recycling models of used products are considered to study the pricing decisions of substitutable products in closed-loop supply chains.The theoretical analysis shows that the recycling model has an impact on the pricing decision of substitutable products in a retailer-led closed-loop supply chain.The results of the numerical analysis further validate the effects of price and cross-price sensitivity coefficients on optimal prices,return rates,and profits of supply chain members.The results show that the optimal price,return rate and profit of supply chain members for both substitutable products decrease with increasing price sensitivity coefficients and both increase with increasing cross-price sensitivity coefficients.The return rate of used products,the profit of manufacturers and retailers is greatest when manufacturers recycle two types of used products.The wholesale and retail prices of products are greatest when retailers recycle used products.In the context of evolving supply chain theory,it is important to study the pricing decision problem of substitutable products in closed-loop supply chains.