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Recycling Pricing and Coordination of WEEE Dual-Channel Closed-Loop Supply Chain Considering Consumers’ Bargaining

Author

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  • Xiaodong Zhu

    (School of Economics and Management, Nanjing University of Aeronautics and Astronautics, Nanjing 210016, China
    School of Management Science and Engineering, Nanjing University of Information Science and Technology, Nanjing 210044, China)

  • Jing Wang

    (School of Management, Huazhong University of Science and Technology, Wuhan 430070, China)

  • Juan Tang

    (College of Management Engineering, Anhui Polytechnic University, Wuhu 241000, China)

Abstract

Environmentally friendly handling and efficient recycling of waste electrical on Waste Electrical and Electronic Equipment (WEEE) have grown to be a global social problem. As holders of WEEE, consumers have a significant effect on the recycling process. A consideration of and attention to the influence of consumer behavior in the recycling process can help achieve more effective recycling of WEEE. In this paper, we built a dual-channel closed-loop supply chain model composed of manufacturers, retailers, and network recycling platforms. Based on the influence of customer bargaining behavior, we studied several different scenarios of centralized decision-making, decentralized decision-making, and contract coordination, using the Stackelberg game theory. The results show that retailers and network recycling platforms will reduce the direct recovery prices to maintain their own profit when considering the impact of consumer bargaining behavior, while remanufacturers will improve the transfer payment price for surrendering part of the profit under revenue and the expense sharing contract. Using this contract, we can achieve supply chain coordination and eliminate the effect of consumer bargaining behavior on supply chain performance. It can be viewed from the parameter sensitivity analysis that when we select the appropriate sharing coefficient, the closed-loop supply chain can achieve the same system performance under a centralized decision.

Suggested Citation

  • Xiaodong Zhu & Jing Wang & Juan Tang, 2017. "Recycling Pricing and Coordination of WEEE Dual-Channel Closed-Loop Supply Chain Considering Consumers’ Bargaining," IJERPH, MDPI, vol. 14(12), pages 1-17, December.
    • Handle: RePEc:gam:jijerp:v:14:y:2017:i:12:p:1578-:d:123153
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    References listed on IDEAS

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    Cited by:

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    2. Xiaodong Lv & Angfei Li & Shuhong Wang & Tao Zhang, 2023. "Building a demand-oriented optimal model for the recycling of used electronic products," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(7), pages 5949-5971, July.
    3. Zhen Li & Jia Zhao & Qingfeng Meng, 2022. "Dual-channel recycling e-waste pricing decision under the impact of recyclers’ loss aversion and consumers’ bargaining power," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(10), pages 11697-11720, October.
    4. Hairui Wei & Xiaoyang Wang & Tingshu Yang, 2024. "A Dual-Channel Cooperative Strategy between Recyclers and E-Tailers for the Offline and Online Recycling of Waste Electronics," Sustainability, MDPI, vol. 16(4), pages 1-17, February.
    5. Wang, Yuyan & Wang, Dexia & Cheng, T.C.E. & Zhou, Rui & Gao, Junhong, 2023. "Decision and coordination of E-commerce closed-loop supply chains with fairness concern," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 173(C).
    6. 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).

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