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Optimal Decision-Making of Closed-Loop Supply Chains in E-Commerce Platform Considering Sales Cooperations under Environmental Effects and WEEE Regulations

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  • Manyi Tan

    (College of Management Science, Chengdu University of Technology, Chengdu 610059, China)

  • Fei Pei

    (Southwest Jiaotong University Hope College, Chengdu 610400, China)

  • Li He

    (College of Management Science, Chengdu University of Technology, Chengdu 610059, China)

  • Hong Cheng

    (College of Management Science, Chengdu University of Technology, Chengdu 610059, China)

  • Shupeng Huang

    (College of Management Science, Chengdu University of Technology, Chengdu 610059, China)

Abstract

Nowadays, to achieve carbon neutrality, e-commerce platforms participate in the sales and recycling of electrical and electronic products in consideration of waste electrical and electronic equipment (WEEE) regulations and environmental effects. This study builds a Stackelberg game model for an e-commerce closed-loop supply chain (ECLSC) under different sales cooperation modes between a manufacturer of electrical and electronic products and an e-commerce platform. Reverse induction is used to obtain the optimal decision-making and profit of the ECLSC under three sales cooperation modes, considering the influence of environmental effects on optimal decision and objective functions. The results show the following: the sales cooperation mode and environmental cost do not affect the WEEE recovery prices of manufacturers and e-commerce platforms, nor do they affect government subsidy standards for dismantling WEEEs; they are, however, positively correlated with environmental benefits. Furthermore, the wholesale and retail prices of electrical and electronic products under different sales cooperation modes are related to sales cooperation modes and environmental costs. Moreover, the processing fees imposed on the manufacturers are related to the environmental costs of the electrical and electronic products; the thresholds of environmental costs of products for government to levy processing fees are different under different sales cooperation modes. Finally, the environmental cost of products required by the government’s levying of processing fees are the lowest under a hybrid model. Generally speaking, under WEEE regulations, governments should levy more processing fees for electrical and electronic products with higher environmental costs. Meanwhile, increased environmental benefits will always increase the profits of supply chain members, but increased environmental costs do not always reduce the profits of supply chain members, and multichannel product sales do not always generate profits for manufacturers.

Suggested Citation

  • Manyi Tan & Fei Pei & Li He & Hong Cheng & Shupeng Huang, 2023. "Optimal Decision-Making of Closed-Loop Supply Chains in E-Commerce Platform Considering Sales Cooperations under Environmental Effects and WEEE Regulations," IJERPH, MDPI, vol. 20(9), pages 1-28, May.
    • Handle: RePEc:gam:jijerp:v:20:y:2023:i:9:p:5724-:d:1139498
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    References listed on IDEAS

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