Retired Aircraft Recovery: Based on Stackelberg Game Method from the Perspective of Closed-Loop Supply Chain

Guihong Zhao, Xintong Zhai and Yuzi Jing ()
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Guihong Zhao: School of Economics and Management, Civil Aviation University of China, Tianjin 300300, China
Xintong Zhai: School of Transportation Science and Engineering, Civil Aviation University of China, Tianjin 300300, China
Yuzi Jing: School of Transportation Science and Engineering, Civil Aviation University of China, Tianjin 300300, China

Sustainability, 2023, vol. 15, issue 2, 1-21

Abstract: At present, the recovery and disposal of decommissioned aircraft have not yet formed a complete system in China. In this paper, a two-channel closed-loop supply chain model composed of an aeronautical materials manufacturer, an aircraft manufacturer, and a third-party recycler is established theoretically. The situation of supply chain recycling under the leadership of the Aeronautical Materials manufacturer, aircraft manufacturer, and third-party recycler is studied. In addition, the third-party recycler and centralized decision making are analyzed through game theory. The results show that the overall revenue of the supply chain is optimal under centralized decision making, but not Pareto optimal under decentralized decision making. Therefore, a revenue-sharing contract is used to coordinate and optimize the supply chain. Finally, the influence of different power structures and model parameters on the two-channel closed-loop supply chain model and the effect of contract coordination are discussed by numerical analysis.

Keywords: recovery of retired aircraft; dual-channel closed-loop supply chain; stackelberg game going; contract coordination and found (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
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