Author(s)

Yunfu Huo and Xinxin Chen

Corresponding Author

Xinxin Chen

Abstract

In this paper, game theory is used to construct a closed-loop supply chain with a single manufacturer and consumer, and the decision-making model of the closed-loop supply chain under government subsidies is established, the optimal decision of the model is obtained, and the results are discussed. The research shows that improving the consumer preference coefficient helps to increase the price of remanufactured products and the profits of manufacturers and retailers. Under the condition that the consumer preference coefficient is determined, strengthening the supervision of the recycling stage can effectively improve the sales of new products without affecting the price of new products. When the consumer preference coefficient is in different range, the change of waste product quality coefficient will have different influence on the consumer's profit. Finally, the model is verified by numerical examples and simulation analysis.

Keywords

Game theory; Willingness to pay; Recycled quality; Closed-loop supply chain; The government subsidies