Decisions of Closed-Loop Supply Chain Based on Recycling Effort and Differential Game

Abstract EN

Recycled resource and consumer satisfaction drive bicycle enterprises to take effort to recycle damaged bicycles.

Considering consumers’ riding experience, this paper analyzes a closed-loop supply chain where the operator sets price and recycling effort, and the supplier determines wholesale price.

Rent and recycling strategies in integrated and decentralized channels are analyzed, and four types of revenue and cost-sharing contracts are compared, and the linear transfer payment-CS contract is designed to coordinate the decentralized supply chain.

The results show that the consumers’ concern for riding experience can encourage the operator to increase recycling effort and the operator increases the rents and recycling effort over time.

Besides, the sharing deposit income among supply chain members only affects the wholesale price and does not change the decisions of rent and recovery effort.

In other words, the deposit is used to adjust the profit distribution among members, and there is no difference for consumers and society.