Research On Pricing And Recycling Strategies Of Closed Loop Supply Chain Under Green Consumption Behavior

Driven by the "double carbon" policy,green manufacturing is the inevitable development trend of China’s manufacturing industry.In November 2021,the Ministry of Industry and Information Technology issued the "Fourteenth Five-Year Plan" for industrial green development,proposing to comprehensively improve the level of green manufacturing.At the same time,we will promote industrial transformation under the guidance of the carbon peak action.Six of these transformations include the transformation of recycling of resource utilization and the transformation of green product supply.Product recycling in closed-loop supply chain can realize the recycling of resources.On this basis,green manufacturing of products can effectively alleviate the resource shortage and environmental problems.With the improvement of consumers’ awareness of environmental protection,green products are popular with consumers.Therefore,in the context of consumer green consumption behavior,the pricing and recovery of products in closed-loop supply chain are studied.First of all,consider the impact of consumer green preference and the quality of recycled products on product prices and profits,but in this case,the impact of time is not considered in the recycling process.Therefore,consider dynamic recycling on the basis of green consumption behavior,and study the impact of recycling strategy,channel power,and decision model selection on the pricing,recycling and profits of closed-loop supply chain products in the context of dynamic recycling and green consumption.The research contents and conclusions are as follows:Firstly,based on the uncertainty of consumer green preferences and the quality of waste recycling,the Stackelberg game theory method is used to study the optimal pricing,product green degree,and quality value coefficient decision-making issues of a remanufacturing closed-loop supply chain composed of manufacturers,retailers,and third-party processing centers under government participation.The green preferences of consumers are analyzed,The impact of green investment in products and quality costs on product prices and profits.Research shows that as consumers’ green preferences increase,the greenness of products and the profits of supply chain enterprises will correspondingly increase.In addition,when the quality cost coefficient continues to increase,the product recovery price,quality value coefficient,and the profit of the supply chain enterprise will increase with the increase of the quality cost coefficient.Finally,a numerical example is used to verify the impact of consumer green preferences and product recycling quality on corporate profits.Secondly,considering the dynamic recovery based on the green consumption behavior of consumers,a differential game model with the recovery rate of waste products as the state variable is constructed,taking into account the green degree of products and different recovery strategies,and then using the optimal control theory to find the equilibrium solution of the model under different recovery strategies,Finally,the equilibrium solutions under the two strategies of manufacturer recycling and retailer recycling are compared and analyzed,and the relevant parameters are analyzed numerically.The research shows that with the increase of the sensitivity coefficient of consumers to the greenness of products,the profit of each subject of the system under the two recovery strategies also increases,and the size of the equilibrium solution of the wholesale price and retail price of products under the two recovery strategies is affected by the sensitivity of consumers to the greenness and price of products and the green cost coefficient.At the same time,compared with the equilibrium solution under the retailer’s recycling strategy,the equilibrium solution under the manufacturer’s recycling strategy is better than that under the retailer’s recycling strategy.Finally,considering multiple retailers and random interference in the dynamic green closed-loop supply chain model,in the green closed-loop supply chain system composed of one manufacturer and two retailers,we first use the Ito process to describe the change of the recovery rate of state variables,and construct the Nash game(NN)between the manufacturer and two retailers,and the Nash game(SN)between the two retailers when the manufacturer is in the dominant position The Stackelberg game(SS)and the target functional under the centralized decision under the condition that the manufacturer is in the leading position and retailer 1 dominates the retail market,thus forming different stochastic differential game models.Then the HJB equation in the optimal control theory is used to obtain the dynamic equilibrium solution and the optimal value function of each agent in the system under different channel power structures.Finally,the change process of the recovery rate is analyzed through an example,and the influence of parameters on the equilibrium solution and profit is discussed.The research shows that with the increase of consumers’ sensitivity to the greenness of products,the greenness of products under different channels,the recycling efforts,the wholesale and retail prices of products and the profits of various entities will increase.At the same time,the recovery rate of waste products fluctuates around the expected value of recovery rate,and the expected value of recovery rate under centralized decision-making is higher than that under decentralized decision-making.The green degree,recovery effort and profit of products under centralized decision-making are higher than those under decentralized decision-making.When making decentralized decisions,the green degree of products under NN channel is the highest,followed by SN channel,and the green degree of products under SS channel is the lowest.