Dual-channel Reverse Supply Chain Pricing Decisions Considering Recycling Publicity Efforts

With the progress of science and technology and the improvement of people’s consumption level,the speed of the replacement of electronic and electrical products is accelerating day by day.The recycling and reprocessing of waste electrical products has become a hot issue concerned by the government and enterprises.In recent years,the reverse supply chain model of the "Internet + recycling" mode has attracted much attention.The network recycling platforms,such as love recycling and circular recycling,etc.have flooded into the market,while the "online + offline" dual-channel recycling mode,such as Haier and Gree,has become the choice of large enterprises.The emergence of the new recycling mode brings convenience to people,but also inevitably brings impact to the traditional recycling channels.At present,due to the dependence and trust of most consumers on traditional offline recycling,online recycling channels have not been widely popularized.At this time,the recycling party can enhance consumers’ trust and familiarity with online recycling through recycling publicity,thus increasing the amount of online recycling.Therefore,how to determine the recycling propaganda effort level and dual-channel pricing decision is the focus of research on dual-channel reverse supply chain enterprises,as well as the focus of scholars in the context of the Internet.This paper first constructed a single recovery supply chain model,subdivided the recovery party into a processor and a third party recycler,used game theory knowledge and methods to compare and analyze the optimal solution of the supply chain system under centralized decision-making and decentralized decision-making with and without input of recovery publicity efforts,and studied the relationship between the main decision-making of the supply chain and the publicity cost coefficient and publicity sensitivity.Finally,the results are further verified by numerical simulation.Secondly,on this basis,a dual-channel reverse supply chain model is constructed,the concept of online recycling publicity effort is introduced,and the optimal solution of the supply chain system with and without online recycling publicity is compared and analyzed with the same knowledge and method.The influence of consumer channel preference and publicity cost coefficient on the supply chain is studied,and the conclusions are further verified by numerical analysis.Finally,on the basis of the above content,the optimal solution of the supply chain system under the condition of the online channel contracting recovery task is studied to get the corresponding conclusion,and the conclusion is verified by numerical simulation.The main conclusions are as follows:(1)Input recovery publicity is helpful to improve consumers’ understanding and trust of online channels,so as to improve the recovery volume and profit of online channels,which is friendly to the supply chain system as a whole,but unfavorable to offline channels;(2)The increase of the publicity cost coefficient will reduce the level of publicity efforts of the processors,and at the same time damage the profits of the processors and online recyclers;(3)Improving consumers’ preference for online channels is beneficial to the supply chain system as a whole.It can be found that recycling enterprises should strengthen recycling publicity and improve consumers’ awareness of recycling.At the same time,the opening of online recycling channels is conducive to the expansion of their own business,and strengthening the publicity of online channels is conducive to promoting consumers to choose online channels as recycling channels,so as to bring profits to themselves.On this basis,recycling enterprises can develop revenue sharing contracts to maintain the development of offline channels.