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A Green Closed-Loop Supply Chain Coordination Mechanism Based on Third-Party Recycling

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  • Jiafu Su

    (Research Center for Economy of Upper Reaches of the Yangtze River, Chongqing Technology and Business University, Chongqing 400067, China
    Chongqing Key Laboratory of Electronic Commerce & Supply Chain System, National Research Base of Intelligent Manufacturing Service, Chongqing Technology and Business University, Chongqing 400067, China)

  • Chi Li

    (The State Key Laboratory of Mechanical Transmission, Chongqing University, Chongqing 400032, China)

  • Qingjun Zeng

    (Research Center for Economy of Upper Reaches of the Yangtze River, Chongqing Technology and Business University, Chongqing 400067, China)

  • Jiaquan Yang

    (Chongqing Key Laboratory of Electronic Commerce & Supply Chain System, National Research Base of Intelligent Manufacturing Service, Chongqing Technology and Business University, Chongqing 400067, China)

  • Jie Zhang

    (Chongqing Key Laboratory of Electronic Commerce & Supply Chain System, National Research Base of Intelligent Manufacturing Service, Chongqing Technology and Business University, Chongqing 400067, China)

Abstract

Taking an environment-friendly green closed-loop supply chain as the research object, this work established a two-stage closed-loop supply chain game model. Considering the influence of the environmental protection input on the whole supply chain, there are different decisions among the participants in the supply chain, and the different choices will have impacts on the benefits of the whole supply chain when manufacturers select a closed-loop supply chain model of third-party recycling. Hence, this work compared and analyzed the impact of centralized decision-making and decentralized decision-making on the returns and pricing strategies of each participant. Finally, an optimized cooperative mechanism decision model considering a cost profit sharing contract was further designed. The model is conducive to obtaining the maximum profit value in centralized decision-making and avoids the negative impact of a “double marginal effect” on supply chain income in decentralized decision-making, and finally, improves the overall coordination and profit of a green closed-loop supply chain. The numerical examples are conducted to verify the effectiveness and practicality of the proposed models. This work provides a helpful decision support and guidance for enterprises and the government on the used products recycling decisions to better manage the green closed-loop supply chain.

Suggested Citation

  • Jiafu Su & Chi Li & Qingjun Zeng & Jiaquan Yang & Jie Zhang, 2019. "A Green Closed-Loop Supply Chain Coordination Mechanism Based on Third-Party Recycling," Sustainability, MDPI, vol. 11(19), pages 1-14, September.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:19:p:5335-:d:271257
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    References listed on IDEAS

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    Cited by:

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    2. Qiao Peng & Yao Xiao, 2020. "Will Third-Party Treatment Effectively Solve Issues Related to Industrial Pollution in China?," Sustainability, MDPI, vol. 12(18), pages 1-15, September.
    3. Xin Yu & Sid Suntrayuth & Jiafu Su, 2020. "A Comprehensive Evaluation Method for Industrial Sewage Treatment Projects Based on the Improved Entropy-TOPSIS," Sustainability, MDPI, vol. 12(17), pages 1-11, August.
    4. Tianle Tian & Chuiyong Zheng & Liguo Yang & Xiaochun Luo & Lin Lu, 2022. "Optimal Recycling Channel Selection of Power Battery Closed-Loop Supply Chain Considering Corporate Social Responsibility in China," Sustainability, MDPI, vol. 14(24), pages 1-30, December.
    5. Fei Zou & Yanju Zhou & Caihua Yuan, 2020. "The Impact of Retailers’ Low-Carbon Investment on the Supply Chain under Carbon Tax and Carbon Trading Policies," Sustainability, MDPI, vol. 12(9), pages 1-27, April.
    6. Peng Xing & Junzhu Yao, 2022. "Power Battery Echelon Utilization and Recycling Strategy for New Energy Vehicles Based on Blockchain Technology," Sustainability, MDPI, vol. 14(19), pages 1-21, September.
    7. Mehr Sadat Salami & Mohammadreza Eslamipirharati & Alireza Bakhshi & Amir Aghsami & Fariborz Jolai & Maziar Yazdani, 2022. "Does a Buyback Contract Coordinate a Reverse Supply Chain Facing Remanufacturing Capacity Disruption and Returned Product Quality Uncertainty?," Sustainability, MDPI, vol. 14(23), pages 1-20, November.
    8. Huilin Wang & Aweewan Mangmeechai, 2021. "Understanding the Gap between Environmental Intention and Pro-Environmental Behavior towards the Waste Sorting and Management Policy of China," IJERPH, MDPI, vol. 18(2), pages 1-16, January.
    9. Chauhan, Chetna & Kaur, Puneet & Arrawatia, Rakesh & Ractham, Peter & Dhir, Amandeep, 2022. "Supply chain collaboration and sustainable development goals (SDGs). Teamwork makes achieving SDGs dream work," Journal of Business Research, Elsevier, vol. 147(C), pages 290-307.
    10. Lili Dai & Tong Shu & Shou Chen & Shouyang Wang & Kin Keung Lai, 2020. "CSR Remanufacturing Supply Chains under WTP Differentiation," Sustainability, MDPI, vol. 12(6), pages 1-19, March.
    11. Chun-Chin Wei & Liang-Tu Chen, 2021. "Supply Chain Replenishment Decision for Newsvendor Products with Multiple Periods and a Short Life Cycle," Sustainability, MDPI, vol. 13(22), pages 1-13, November.
    12. Huaixi Song & Quanxi Li & Kailing Liu & Yi Li, 2022. "The Recycling Strategy of Closed-Loop Supply Chain Considering CSR under the Government’s Reward–Penalty Policy," Sustainability, MDPI, vol. 14(21), pages 1-16, October.
    13. Jie Jian & Yu Guo & Lin Jiang & Yanyan An & Jiafu Su, 2019. "A Multi-Objective Optimization Model for Green Supply Chain Considering Environmental Benefits," Sustainability, MDPI, vol. 11(21), pages 1-20, October.
    14. Wei Sun & Yi Su, 2020. "Analysing Green Forward–Reverse Logistics with NSGA-II," Sustainability, MDPI, vol. 12(15), pages 1-18, July.
    15. Zongyu Mu & Yuangang Zheng & Hao Sun, 2021. "Cooperative Green Technology Innovation of an E-Commerce Sales Channel in a Two-Stage Supply Chain," Sustainability, MDPI, vol. 13(13), pages 1-28, July.
    16. Huilin Wang & Jiaxuan Li & Aweewan Mangmeechai & Jiafu Su, 2021. "Linking Perceived Policy Effectiveness and Proenvironmental Behavior: The Influence of Attitude, Implementation Intention, and Knowledge," IJERPH, MDPI, vol. 18(6), pages 1-17, March.
    17. Liu Yang & Han Qin & Quanxin Gan & Jiafu Su, 2020. "Internal Control Quality, Enterprise Environmental Protection Investment and Finance Performance: An Empirical Study of China’s A-Share Heavy Pollution Industry," IJERPH, MDPI, vol. 17(17), pages 1-15, August.
    18. Yun Bai & Nejc Bezak & Klaudija Sapač & Mateja Klun & Jin Zhang, 2019. "Short-Term Streamflow Forecasting Using the Feature-Enhanced Regression Model," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 33(14), pages 4783-4797, November.
    19. Yang Lv & Xinhua Bi & Quanxi Li & Haowei Zhang, 2022. "Research on Closed-Loop Supply Chain Decision Making and Recycling Channel Selection under Carbon Allowance and Carbon Trading," Sustainability, MDPI, vol. 14(18), pages 1-17, September.
    20. Wang, Yuyan & Yu, Zhaoqing & Shen, Liang & Jin, Mingzhou, 2022. "Operational modes of E-closed loop supply chain considering platforms’ services," International Journal of Production Economics, Elsevier, vol. 251(C).
    21. Zhang, Ranran & Ma, Weimin & Si, Hongyun & Liu, Jinjin & Liao, Le, 2021. "Cooperative game analysis of coordination mechanisms under fairness concerns of a green retailer," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).

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