Product Recycling Cooperation Strategy Under Government Subsidies and Third-Party Recycling

doi:10.12068/j.issn.1005-3026.2023.03.018

Abstract

Abstract: In order to discuss the recycling cooperation strategy of supply chain members under the third-party recycling mode， a supply chain system composed of manufacturers， retailers and third-party recyclers was built. Considering government subsidies， product recycling cooperation strategies of manufacturers and third-party recyclers under cost sharing and task sharing recycling cooperation modes were studied. The optimal decisions and profits of supply chain members under the non-cooperation and two cooperation modes were calculated and the impacts of government subsidies on the profit of the supply chain members were analyzed. The research results showed that， government subsidies have a positive impact on supply chain members’ profits， no matter how government subsidies change， when manufacturers cooperate with their recyclers， the product recycling rate， supply chain members’ profits and their growth rate with subsidies are always higher than those without cooperation. When government subsidies and manufacturers’ cost recycling coefficient meet certain conditions， there is a greater recycling rate in the cost sharing mode， and supply chain members can obtain greater profits as well.

Key words: closed-loop supply chain; recycling cooperation; government subsidy; third-party recycling; cost sharing; task sharing

CLC Number:

F272

LI Li-jun， LIU Yi-duo， CHENG Fu. Product Recycling Cooperation Strategy Under Government Subsidies and Third-Party Recycling[J]. Journal of Northeastern University(Natural Science), 2023, 44(3): 440-447.

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