Coordination Mechanism of E-Closed-Loop Supply Chain under Social Preference

Abstract

This study investigates the effect of social preference on the recycling decision and coordination in an E-closed-loop supply chain (E-CLSC). Firstly, we set the dynamic E-CLSC game model including a manufacturer, an E-commerce platform (E-platform) and a recycler, where the manufacturer dominates the supply chain and both the E-platform and the recycler are followers. Secondly, we propose an E-CLSC information structure to depict four symmetry and asymmetry cases about the E-platform’s fairness concern and the manufacturer’s altruistic reciprocity, and the backward induction method is adopted to solve the equilibrium in each case. By comparative analysis, we propose a revenue-sharing and cost-sharing contract to optimize recycling decisions, coordinate the E-CLSC and Pareto-improve all parties’ profits. We show that whether information is symmetrical or not, only the wholesale price contract cannot coordinate the E-CLSC, whereas the revenue-sharing and cost-sharing contract can always achieve optimal recycling decisions, coordinate the supply chain and Pareto-improve all parties’ profits with a constant cost sharing ratio. In addition, the E-platform’s fairness concern can widen the range of the revenue sharing ratio and make it easier to coordinate the E-CLSC, but the manufacturer’s altruistic reciprocity may narrow the range of the revenue sharing ratio and make it harder to coordinate the E-CLSC.

A Dual-Channel Cooperative Strategy between Recyclers and E-Tailers for the Offline and Online Recycling of Waste Electronics

“…Unlike the traditional recyclers who usually carry out offline channel recycling by opening stores, for the past few years, online recycling channels based on new network recycling platforms have become a trend [5]. Compared to offline recycling channels, online recycling channels have improved information transmission, process simplification, and recycling efficiency [6]. Therefore, the emergence of a new network of recycling platforms responsible for online recycling has extended recycling channels to form a dual-channel recycling model that includes traditional offline stores.…”

“…In the past, when the online channel for recycling was not popularized, it was mainly dominated by offline competition among the supply chain members, such as the competition and cooperation between manufacturers and third-party recyclers in the process of electronics recycling [9], and the competition and cooperation between retailers and third-party recyclers in the process of electronics recycling [10]. As online channels become a prevailing trend, not only have many third-party recyclers established offline stores and online platforms for electronic product recycling at the recycling entity level, but also numerous professional e-commerce companies have ventured into the electronic product recycling industry [6]. For example, the e-commerce giant, JD.com, is cooperating with Aihuishou [11], which transfers their recycled electronics to the former to sell on Paipai.com.…”