Journal Name:
- Journal of Industrial Engineering and Management
Author Name | University of Author |
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Abstract (2. Language):
Purpose: 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.
Design/methodology/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.
Originality/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.
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