Recycling Decision of Closed-loop Supply Chain Considering Competition——Based on Government-driven and Market-driven Deposit Refund System
The deposit refund system is an effective mechanism to stimulate the recycling of waste products.The deposit return system can be divided into market-oriented deposit return systems and government driven deposit return systems.Market driven modes are generated spontaneously by manufacturers based on individual economic goals.The government driven model,on the other hand,arises from social environmental goals and is led by the government.This paper considers a closed-loop supply chain composed of an original manufacturer,a remanu-facturer,and a recycler,and aims to study the implications of the deposit refund system on the decision making for pricing and collection of manufacturers and recycler.In this paper,we construct four different deposit modes based on the deposit return system,namely(1)basic mode without deposit return,(2)mode with remanufactur-ers collecting deposits from consumers,(3)mode with the government collecting deposits from two manufactur-ers,and(4)mode with the government collecting a deposit from recyclers mode.This article studies a closed-loop supply chain considering manufacturer competition under"market driven"and"government driven"deposit return systems,and explores the impact of deposit return systems under different modes on manufacturer recovery decisions.This article is based on the deposit refund system,considering manufacturer competition,to study the pricing and recycling decisions of closed-loop supply chain,and explores four different modes of the deposit refund system.By discussing the pricing of products from two manufacturers under different modes,the recycling rate of recyclers,and the repurchase price of waste products,corresponding conclusions are obtained:(1)In the mode where the government charges deposits from manufacturers or recycler,the collection rate increases with the increase of unit deposits,revealing that the government-driven deposit return system can effectively promote the recycling and remanufacturing of waste products.(2)In the mode where the remanufacturer charges deposits from consumers,the profit of remanufacturers increases with the increase of unit deposit,which indicates that the market-driven deposit return system will have a positive effect on the profit of remanufacturer.(3)As far as the original manufacturer is concerned,in the mode where the government charges deposits from the manufacturers,its product price increases compared with the mode without deposits,and in the modes where the remanufacturer charges deposits from the consumers and where the government charges deposits from the recycler,its product price decreases.As for the remanufacturer,in the modes with deposit return system,its product price will decrease compared with the mode without deposits.The conclusions are based on the perspective of the deposit refund system,and have certain reference value for the manufacturer's selection of recycling strategies and the government's selection of reasonable incentive policies.This study provides three management insights:(1)Enterprises spontaneously charging environmental deposits to consumers can increase their profits,showcase product quality to consumers,establish a good brand image,and form a competitive advantage for the enterprise.(2)The government's collection of deposits from manufacturers or recyclers for social environmental goals can effectively improve the recycling rate of waste products and achieve the green cycle of closed-loop supply chain.(3)When consumers pay environmental deposits to remanufacturers,being able to purchase products at the lowest price is the most beneficial for realizing their own interests.The de-posit refund system,as a policy mechanism,can have a positive impact on both the environment and the supply chain,ensuring the recycling of products and providing overall profits for the supply chain.
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