Multi-Game Model of Reverse Logistics in the Manufacturing Industry

Abstract

Economic value of reverse logistics is increasingly concerned in recent years. Reverse logistics of EOL (End-of-life) is alsoconcerned. According to analysis of present situation of implement in reverse logistics, the paper presents multi-game model of reverse logistics among Third-party logistics (3PL), manufacturing enterprise, government, and customer. The first phase is the multi-game mode among manufacturing enterprise, government, consumers, the second phase is "principal -agent" model between manufacturers and 3PL. the paper classifies products by recycling value and environment pollution, and analyzes game process of different kinds of products. The paper conducts strategy of participation in reverse logistics, and choice of logistics mode for manufacturing enterprise.By application example of salvage computer, the result shows the effectivity and feasibility of the game model of reverse logistics.