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Retired Aircraft Recovery: Based on Stackelberg Game Method from the Perspective of Closed-Loop Supply Chain

Author

Listed:
  • Guihong Zhao

    (School of Economics and Management, Civil Aviation University of China, Tianjin 300300, China)

  • Xintong Zhai

    (School of Transportation Science and Engineering, Civil Aviation University of China, Tianjin 300300, China)

  • Yuzi Jing

    (School of Transportation Science and Engineering, Civil Aviation University of China, Tianjin 300300, China)

Abstract

At present, the recovery and disposal of decommissioned aircraft have not yet formed a complete system in China. In this paper, a two-channel closed-loop supply chain model composed of an aeronautical materials manufacturer, an aircraft manufacturer, and a third-party recycler is established theoretically. The situation of supply chain recycling under the leadership of the Aeronautical Materials manufacturer, aircraft manufacturer, and third-party recycler is studied. In addition, the third-party recycler and centralized decision making are analyzed through game theory. The results show that the overall revenue of the supply chain is optimal under centralized decision making, but not Pareto optimal under decentralized decision making. Therefore, a revenue-sharing contract is used to coordinate and optimize the supply chain. Finally, the influence of different power structures and model parameters on the two-channel closed-loop supply chain model and the effect of contract coordination are discussed by numerical analysis.

Suggested Citation

  • Guihong Zhao & Xintong Zhai & Yuzi Jing, 2023. "Retired Aircraft Recovery: Based on Stackelberg Game Method from the Perspective of Closed-Loop Supply Chain," Sustainability, MDPI, vol. 15(2), pages 1-21, January.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:2:p:1615-:d:1035502
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    References listed on IDEAS

    as
    1. Zongsheng Huang, 2020. "Stochastic Differential Game in the Closed-Loop Supply Chain with Fairness Concern Retailer," Sustainability, MDPI, vol. 12(8), pages 1-21, April.
    2. R. Canan Savaskan & Shantanu Bhattacharya & Luk N. Van Wassenhove, 2004. "Closed-Loop Supply Chain Models with Product Remanufacturing," Management Science, INFORMS, vol. 50(2), pages 239-252, February.
    3. Sabaghi, Mahdi & Cai, Yongliang & Mascle, Christian & Baptiste, Pierre, 2015. "Sustainability assessment of dismantling strategies for end-of-life aircraft recycling," Resources, Conservation & Recycling, Elsevier, vol. 102(C), pages 163-169.
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