A Study On The Recycling Service Mode And Coordination Of Closed-loop Supply Chain Under Stochastic Demand

The closed-loop supply chain(CLSC)is a system composed of forward and reverse channels with high complexity and uncertainty,one manifestation of which is that uncertainty in the demand market of the forward channel affects decisions related to the recycling market of the reverse channel.In this paper,we study the CLSC decisions at the CLSC design level with uncertain demand and different recycling service models with a manufacturer as the Stackelberg leader and a retailer and a third party as followers.This paper focuses on the impact of the forward channel stochastic demand and the degree of forward and reverse channel association on the reverse channel recycling price,recycling volume,recycling service level and CLSC members’ profit under decentralized decision making and different recycling service models,and the main research contents and findings are as follows.(1)Two scenarios are considered: the retailer sells products in the forward channel and the third party recycles used products in the reverse channel and does not provide recycling services or provides recycling services.The study shows that when the market demand changes,the retailer will bear most of the risk while the manufacturer and the third party will benefit;when the forward and reverse channels become more connected,the manufacturer in the reverse channel will increase transfer payments,and the third party will increase recycling prices and reduce the level of recycling services.(2)Two scenarios are considered in which the retailer sells products in the forward channel on the one hand,and on the other hand,jointly serves or competes with the third party in the reverse channel.When the retailer and the third party jointly provide recycling services,the retailer and the third party will increase the overall service level and the retailer will assume a higher percentage of the service level as demand uncertainty increases;conversely,when the forward and reverse channels become more connected,the retailer and the third party will decrease the overall service level and the retailer will assume a lower percentage of the service level.When the retailer and the third party compete for services,as demand uncertainty increases,both the third party and retailer increase service levels and reduce recycling prices;when the degree of positive and reverse channel association increases,the overall service levels in the service competition model are the same as those in the joint service model,and both models show a trend that the larger the recycling market share is,the lower the recycling prices and the higher the service levels.(3)Different recycling service models are compared and it can be found that joint recycling service is the optimal choice for the retailer and third party;the increased level of service competition between the retailers and third party reduces the profits of retailers and third parties,but external consumers will benefit as a result;the behavioral decision of the manufacturer as a CLSC leader will influence whether the supply chain moves toward high profitability and low recycling volume or toward a more resource-efficient sustainable CLSC.(4)Given that only third-party recycling(providing or not providing services)is a worst-case scenario,a cost-sharing and profit-sharing coordination contract is designed based on centralized decision making: the manufacturer shares profits with the retailer in the forward channel and shares recycling costs with the third party in the reverse channel,ultimately achieving perfect coordination of the entire CLSC.The recycling of waste products can both protect the environment and bring profit to enterprises,so contemporary enterprises pay more attention to the recycling of waste products,however,they are facing the dilemma of difficult recycling.This paper researches and compares the mixed recycling model of multiple subjects under the uncertainty of demand market,and provides a decision basis for CLSC to improve the construction of recycling channels and improve the utilization rate of resources.