The Government’s Environment Policy Index Impact on Recycler Behavior in Electronic Products Closed-Loop Supply Chain

Abstract EN

We establish the model of multilevel closed-loop supply chain (CLSC) which included raw material supplier, manufacturer, distributor, retailer, and third-party recycler based on system dynamics (SD).

Considering factors which influence recycler behavior-environmental policy index and recovery delay, we apply SD software—Vensim—to simulate CLSC model and study recycler behavior’s influence on the entire CLSC through calculating the bullwhip effect of all levels members order rate.

Research shows that ( 1 ) the larger the environmental policy index, the greater the recycle proportion and the better the effect of weakening retailer’s order rate in forward supply chain, which however, increasingly, strengthen the reverse supply chain bullwhip effect, ( 2 ) the shorter the recovery delay, the better the effect of weakening the forward supply chain bullwhip effect and the longer the recovery delay, which increasingly weakens the reverse supply chain bullwhip effect, and ( 3 ) the effect of environmental policy index on the bullwhip effect of all levels members order rate is more significant than recovery delay.