Research On Sales And Waste Product Recycling Strategy Of Dual-channel Closed-loop Supply Chain

The General Secretary of Central Committee of the Communist Party of China Xi Jinping pointed out in the report of the 20 th CPC National Congress: "We adhere to the concept that those sustainable resources such as clean waters and lush mountains are valuable assets.We must strengthen ecological and environmental protection in all directions,in all regions,and in the entire process.We must deepen our efforts to prevent and control pollution and take solid steps toward green,circular and low-carbon systematic development." As ewaste has dual attributes of resources and hazards,China pays more and more attention to the recycling of waste electrical and electronic products,and continuously introduces relevant laws and regulations to promote the recycling and reuse of these products.At the same time,online shopping,"Internet + service" shopping mode,online and offline integration shopping mode,etc.are becoming the leading concepts of the new consumption industry.The use of online platforms for sales has completely changed people’s purchasing behavior and greatly facilitated social life.It has injected vitality into the development of the closed-loop supply chain.Therefore,manufacturing enterprises should set a goal of developing this kind of newtype industrialization,with the help of the new trend that online selling has been becoming the leading concept of the new consumption industry.Additionally,researching on the sales and recycling strategies in the dual-channel closed-loop supply chain is conducive to the high-quality development of my country’s manufacturing industry.This research aims to construct an operational decision-making model for the closedloop supply chain under the two recycling modes of retailer recycling and manufacturer recycling,considering dual channels including retail channels and online direct-selling channels based on the above research background.Through the sensitivity analysis,I research on the impact of factors such as consumer’s preference on online shopping,retail service quality,and service cost to the key factors such as the sensitivity of cost to the level of service quality,etc.,on the decision-making and profitability of the members in the supply chain system.Furthermore,I compare and analyze the recovery rate of wasting products,service level,and profit of each member in the closed-loop supply chain in the process of decentralized decision-making and centralized decision-making.Lastly,I emphasize on the discussion of the manufacturer’s sales and recycling strategy choices.In this paper,we can conclude that:(1)It is clear that factors such as the increase of consumers’ preference for online shopping,the increase of retailers’ service quality in retail services,and the increase in the sensitivity of service quality to service level are all conducive to manufacturers’ higher profits.(2)In the dual-channel closed-loop supply chain of retailer recycling and manufacturer recycling,consumers’ online shopping preference is the main factor affecting the manufacturer’s choice of sales strategy.When the effect of this factor is relatively lower,the manufacturer chooses the offline retail strategy.As the gradual increases of the impact,the profit of the manufacturer in the network direct sales and dual sales channel system will increase at the same time,which leading the decision maker deciding to open the network direct sales channel.When the impact keeps rising to a certain extent,the manufacturer will input more in this channel and choose to close offline retail channels and open online direct sales channels only.(3)In the retailer’s recycling mode and the manufacturer’s recycling mode,the centralized decision-making is always better than the decentralized decision-making.Additionally,the "double marginal effect" problem will lead to the fact that the total profit of the decentralized decision-making system is less than that of the centralized decision-making system.The cost-sharing contract can coordinate the decentralized decision-making behavior of each member,and enable each member in the system to obtain Pareto-improved profits.This research will provide a theoretical analysis and important enlightenment for the sales and recycling strategy of the dual-channel closedloop supply chain.