A Green Closed-Loop Supply Chain Coordination Mechanism Based on Third-Party Recycling

Jiafu Su, Chi Li, Qingjun Zeng, Jiaquan Yang and Jie Zhang
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Jiafu Su: Research Center for Economy of Upper Reaches of the Yangtze River, Chongqing Technology and Business University, Chongqing 400067, China
Chi Li: The State Key Laboratory of Mechanical Transmission, Chongqing University, Chongqing 400032, China
Qingjun Zeng: Research Center for Economy of Upper Reaches of the Yangtze River, Chongqing Technology and Business University, Chongqing 400067, China
Jiaquan Yang: Chongqing Key Laboratory of Electronic Commerce & Supply Chain System, National Research Base of Intelligent Manufacturing Service, Chongqing Technology and Business University, Chongqing 400067, China
Jie Zhang: Chongqing Key Laboratory of Electronic Commerce & Supply Chain System, National Research Base of Intelligent Manufacturing Service, Chongqing Technology and Business University, Chongqing 400067, China

Sustainability, 2019, vol. 11, issue 19, 1-14

Abstract: Taking an environment-friendly green closed-loop supply chain as the research object, this work established a two-stage closed-loop supply chain game model. Considering the influence of the environmental protection input on the whole supply chain, there are different decisions among the participants in the supply chain, and the different choices will have impacts on the benefits of the whole supply chain when manufacturers select a closed-loop supply chain model of third-party recycling. Hence, this work compared and analyzed the impact of centralized decision-making and decentralized decision-making on the returns and pricing strategies of each participant. Finally, an optimized cooperative mechanism decision model considering a cost profit sharing contract was further designed. The model is conducive to obtaining the maximum profit value in centralized decision-making and avoids the negative impact of a “double marginal effect” on supply chain income in decentralized decision-making, and finally, improves the overall coordination and profit of a green closed-loop supply chain. The numerical examples are conducted to verify the effectiveness and practicality of the proposed models. This work provides a helpful decision support and guidance for enterprises and the government on the used products recycling decisions to better manage the green closed-loop supply chain.

Keywords: green closed-loop supply chain; green and environment-friendly; used product; game model; third-party recycling; coordination mechanism (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

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