Pricing and Trade-in Strategy of Closed-loop Supply Chain under the Recycling Target Responsibility System
In recent years,with the continuous improvement of economic and social development level,China has become the world's largest manufacturing base and consumer of home appliances.With the continuous expansion of China's household appliance market,the problem of waste household appliance recycling has become increasingly prominent.Under the dual carbon goals of"carbon peaking"and"carbon neutrality",it is an important way to encourage production enterprises to implement the recycling target responsibility system,which can help home appliance companies achieve the dual carbon goals.At the same time,the implementation of trade-in strategy can make a good connection between the sales end and the recycling end,so providing trade-in service is an important way for manufacturing enterprises to achieve the recycling goal.However,in the context of the recycling target responsibility system,on the one hand,the decisions of new product production and old product recycling in the supply chain will be greatly affected when the collection target is constrained;on the other hand,the decision problem of trade-in strategy in the supply chain is changed from who should carry out the trade-in strategy to how should the manufacturer carry out the trade-in strategy.Based on this,the optimal decisions of closed-loop supply chain under the recycling target responsibility system and the manufacturer's trade-in strategy selection are studied in this paper.First,a closed-loop supply chain consisting of a manufacturer,a retailer and a recycler is considered in the paper.Then,based on the recycling constraints imposed on the manufacturer by the target recovery rate,the following three scenarios are explored:the manufacturer implements the trade-in service,the manufacturer outsources the trade-in service to the retailer,and the manufacturer outsources the recycling of the used product in the trade-in service to the recycler.In order to meet the actual situation,the model of wholesale price of new products and transfer price of old products is adopted when the manufacturer outsources the trade-in service to the retailer,and the commission model is adopted when the manufacturer outsources the recycling of old products in the trade-in service to the recycler.Third,three constrained Stackelberg game models are constructed,and the game equilibrium solutions of these models are obtained by backward recursion method and KKT conditions.Finally,the game equilibrium solution and the profit of supply chain members under different models are compared and analyzed,and the feasibility and robustness of the model are verified by numerical simulation.The research conclusions obtained are as fol-lows First,when the recycling target responsibility system is implemented and the value of the target recycling rate is greater than a certain threshold,the profits of the manufacturer,retailer and supply chain all show a rapid decline in the three trade-in models.That is,even if the fixed costs involved in recycling old products are negligible,recycling target responsibility system is always bad for the supply chain and its members.Therefore,it is necessary for the government to reduce taxes or provide subsidies to encourage enterprises to achieve the recycling target.Secondly,for new customers,if there is no target responsibility system for recycling or the target recovery rate is small,it is most advantageous for manufacturers to outsource trade-in to recyclers;otherwise,it is most advantageous for manufacturers to implement trade-in.For existing customers,it is always in the best interest of the manufacturer to implement a trade-in,and it is always the worst for the manufacturer to outsource the trade-in to a recycler.Finally,from the perspective of supply chain performance,when there is a recycling target responsibility system,the optimal trade-in strategy is for manufacturers to imple-ment trade-in.When the manufacturer is reluctant to implement a trade-in strategy due to the large fixed invest-ment cost,the retailer can bear part of the cost for the manufacturer to benefit all supply chain members.The research conclusion of this paper can provide management suggestions for manufacturing enterprises affected by the recycling target responsibility system to achieve the recycling target and improve corporate profits.