Different Subsidies’ Impact on equilibrium decision-making of closed-loop supply chain
Abstract: An electronic
product recycling not only needs the waste treatment company, but also involves
recycler and remanufacturer. It is significance for increasing subsidy modes
and promoting waste recycling to research the effect of government subsidies
for recycler and remanufacturer on the equilibrium of closed-loop supply chain.
Approach: In view of service competition, we build a Stackelberg model
which contains an original manufacturer, a recycler and remanufacturer and
further obtain the equilibrium decision of closed-loop supply chain. Based on
this strategy model, we analyze how two different subsidies to utilization rate
of raw materials, the service level and the demand of product affect on the
terminal decision.
Findings: We compared the two different subsidy ways in closed-loop
supply chain. Subsidy to utilization rate of raw materials has no effect on the
whole market demand for electronic product; and subsidy on utilization rate of
raw materials has no effect on the whole market demand for electronic product.
Research implications: Under the conditions in which government can
observe the information of raw material utility and remanufacturing service
level, if government decides to expand the market size, it could subsidize
remanufacturer for different service level; Under the conditions in which
government can observe the information of raw material utility and
remanufacturing service level, if government want to improve utilization rate
of raw materials, stimulate sustainable development of industries of electronic
product, it can subsidizes recycler based on different utilization rate of raw
materials.
Value: We analyzed the closed-loop supply chain equilibrium, compared the
effects on it under different subsidy mechanism and offered some advises in
order to provide scientific support to promote electronic products recycling.
Keywords: Subsidy; Service;
Closed-loop Supply Chain; Utilization Rate of Raw Materials; Decision-making
Author: Liurui Deng, Wei Li,
Zilan Liu
Journal Code: jptindustrigg140080
