Optimal Recycling Channel Selection of Power Battery Closed-Loop Supply Chain Considering Corporate Social Responsibility in China

Tianle Tian, Chuiyong Zheng, Liguo Yang (), Xiaochun Luo and Lin Lu
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Tianle Tian: Business School, Hohai University, Nanjing 211100, China
Chuiyong Zheng: Business School, Hohai University, Nanjing 211100, China
Liguo Yang: Business School, Hohai University, Nanjing 211100, China
Xiaochun Luo: College of Economics and Management, Nanjing University of Aeronautics and Astronautics, Nanjing 211106, China
Lin Lu: College of Economics and Management, Guangxi Normal University, Guilin 541004, China

Sustainability, 2022, vol. 14, issue 24, 1-30

Abstract: With economic development and societal progress, the supply chain should not only focus on profitability, but also environmental protection, as well as undertake corresponding corporate social responsibility (CSR). The operational decisions of the closed-loop supply chain (CLSC) in the power battery industry should rather consider the impact of CSR. Thus, this paper studies the optimal recycling channel selection and coordination of CLSC in the power battery industry under the consideration of CSR efforts and uncertain demand. By considering the CSR efforts taken by the manufacturer, decentralized and coordination decision-making models under different recycling modes (including manufacturer recycling, retailer recycling and third-party recycling) are constructed to analyze the optimal decision of CLSC. After that, the models were validated through numerical and sensitivity analysis, followed by discussion and management insights. It is found that when consumers are sensitive to the level of CSR effort, CSR effort has a positive impact on the profits of participants in CLSC. Additionally, the coordination decision-making model always outperforms the decentralized decision-making model under the same recycling mode, so reasonable profit-sharing contracts are developed to ensure the implementation of coordination decision-making. Moreover, transfer price plays different roles in different decision situations and recycling modes, while recycling cost is critical to the overall profit of the supply chain and influences the choice of recycling channel.

Keywords: closed-loop supply chain; recycling channel strategy; corporate social responsibility; coordination (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
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