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Dual Chains Competition under Two Recycling Modes Based on System Dynamics Method

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  • Renzheng Xue

    (School of Computer Science and Technology, Harbin University of Science and Technology, Harbin 150000, China
    School of Computer and Control Engineering, Qiqihar University, Qiqihar 161000, China)

  • Fengbin Zhang

    (School of Computer Science and Technology, Harbin University of Science and Technology, Harbin 150000, China)

  • Feng Tian

    (Newcastle Business School, Faculty of Business and Law, University of Newcastle, Australia, 1 University Drive, Callaghan 2308, Australia)

  • Richard Oloruntoba

    (Newcastle Business School, Faculty of Business and Law, University of Newcastle, Australia, 1 University Drive, Callaghan 2308, Australia)

  • Shidi Miao

    (School of Computer Science and Technology, Harbin University of Science and Technology, Harbin 150000, China)

Abstract

The fast-growing accumulation of electronic waste (e-waste) around the world is resulting in environmental pollution and adverse human health and, thus, has become a global area of concern. As the world’s second largest producer of e-waste, China suffers significant pollution from e-waste because of inefficient recycling and management. This paper is a comparative systems dynamics study of two big home appliance manufacturers in China: Haier (Haier Group of Qingdao, China) and Gree (Gree Electric Appliances Inc. of Zhuhai, China). We used systems dynamics modeling to examine and compare the impact of closed-loop supply chain recycling and remanufacturing strategies on the total revenue of the supply chain and market shares of both manufacturers. Results show that an increase in third party service coverage and increased environmental awareness enhanced the total revenue of supply chain. Retailers showed more enthusiasm for recycling through contract development with manufacturers, thus resulting in reduced time of payment in closed-loop supply chains. We also found that an improvement of the recycling mechanism of retailers results in an increase in the share of the supply chain market. Hence, we propose a better supply chain mode.

Suggested Citation

  • Renzheng Xue & Fengbin Zhang & Feng Tian & Richard Oloruntoba & Shidi Miao, 2018. "Dual Chains Competition under Two Recycling Modes Based on System Dynamics Method," Sustainability, MDPI, vol. 10(7), pages 1-14, July.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:7:p:2382-:d:156967
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    References listed on IDEAS

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    Cited by:

    1. Umangi Pathak & Ravi Kant & Ravi Shankar, 2020. "Effect of buyback price on channel’s decision parameters for manufacturer-led close loop dual supply chain," OPSEARCH, Springer;Operational Research Society of India, vol. 57(2), pages 438-461, June.
    2. Hilal Shams & Altaf Hossain Molla & Mohd Nizam Ab Rahman & Hawa Hishamuddin & Zambri Harun & Nallapaneni Manoj Kumar, 2023. "Exploring Industry-Specific Research Themes on E-Waste: A Literature Review," Sustainability, MDPI, vol. 15(16), pages 1-22, August.
    3. Huihui Liu & Xiaolin Wu & Desheng Dou & Xu Tang & G. Keong Leong, 2018. "Determining Recycling Fees and Subsidies in China’s WEEE Disposal Fund with Formal and Informal Sectors," Sustainability, MDPI, vol. 10(9), pages 1-14, August.

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