A System Dynamics Model to Evaluate Effects of Retailer-Led Recycling Based on Dual Chains Competition: A Case of e-Waste in China

Renzheng Xue, Fengbin Zhang and Feng Tian
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Renzheng Xue: School of Computer Science and Technology, Harbin University of Science and Technology, Harbin 150080, China
Fengbin Zhang: School of Computer Science and Technology, Harbin University of Science and Technology, Harbin 150080, China
Feng Tian: Newcastle Business School, Faculty of Business and Law, University of Newcastle, Australia, University Drive, Callaghan, NSW 2308, Australia

Sustainability, 2018, vol. 10, issue 10, 1-18

Abstract: China, as the largest electronic waste producer in the world, is facing a critical challenge to manage its negative impacts on the environment. Hence, e-waste management is crucial for sustainable Chinese economic development. In this paper, a system dynamics model is adopted to identify the effects of retailer-led recycling based on closed-loop dual chains competition. The influence of contracts made by manufacturers on different retail modes is also discussed. From the aspects of total revenue (TR), market share (MS) and market competitiveness (MC), this paper analyzes the impact of e-waste recycling coefficient (ERC) on supply chain and analyzes the equilibrium solution of total supply chain return. The research results show that the contract incentive mechanism can improve the retailer’s recycling enthusiasm, and the effect on the retail mode of executive shop is more obvious. When the ERC is adjusted to 44.3%, the TR of supply chain is optimal, and the MS and MC occupy an obvious advantage.

Keywords: closed-loop supply chain; dual chains competition; system dynamics modelling; contract incentive mechanism; retail-led recycling; Equilibrium solution (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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