Research on Two-Way Logistics Operation with Uncertain Recycling Quality in Government Multi-Policy Environment

Yue Tan and Chunxiang Guo
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Yue Tan: Business School of Sichuan University, Chengdu 610065, China
Chunxiang Guo: Business School of Sichuan University, Chengdu 610065, China

Sustainability, 2019, vol. 11, issue 3, 1-18

Abstract: With the emphasis on environmental protection issues, countries have introduced a number of circular economy-related policies aimed at guiding enterprises to green development and green innovation. At the same time, they are encouraged to strengthen the combination of forward logistics and reverse logistics, providing an effective way to improve resource shortages and reduce environmental pollution. However, the quality of recycled products in reverse logistics is often uncertain, which not only increases the risk of production decisions of remanufacturers, but also affects the sales of new products in the forward logistics to a certain extent. Based on the uncertainty of recycling quality of waste products and the controllability of remanufacturing technology level, this paper studies the impact of various regulatory environments on the operation of a two-way logistics system. We solve the decision model of the system through game theory. The results show that the government’s policy can improve product recycling quality and remanufacturing technology. However, recycling rewards and punishments, remanufacturing technology subsidies, and recycling payment factors need to be within a certain range to ensure the effectiveness of the trading market. When the recycling regulation has been implemented, it is beneficial for manufacturers to choose to improve their remanufacturing technology level. This means that the combined effect of multiple policies is more conducive to the operation of a two-way logistics system.

Keywords: government multi-policy; two-way logistics system; sustainable development; recycling quality; remanufacturing technology (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 (13)

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