Practical Analysis on Price Decision Model Under Closed-Loop Supply Chain

Abstract

Abstract: The price decision model of closed-loop was proposed that consists of manufacturer, retailer and the third-part logistic operator under stochastic demand. It has the recycle and remanufacturing function of product. Based on the game theory, the model was analyzed under the centralized-decision and the decentralized-decision. The results show that all variables under centralized-decision are prior to that of decentralized-decision. The retailer price of the former is less than that of the latter; the recycle price and the product’s quantity are more than that of the latter. Besides, the profit of the centralizeddecision is obviously greater than that of the decentralized-decision. Lastly, the analysis was given in machined and electric parts, which proves that the method is effective and practical.

Key words: closed-loop supply chain, game theory, centralizeddecision, stochastic demand

CLC Number:

F 252.5

ZHANG Qian, ZHAO Ju-Hong, ZHANG Zhi-Xiang. Practical Analysis on Price Decision Model Under Closed-Loop Supply Chain[J]. Journal of Shanghai Jiaotong University, 2012, 46(12): 2014-2018.

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