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Pricing and coordination of waste electrical and electronic equipment under third-party recycling in a closed-loop supply chain

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Abstract

Waste electrical and electronic equipment have the potential environmental risks and resource value simultaneously. So the product recycling is very important. This paper studies on recycling problems of WEEE under the third-party recycling in a closed-loop supply chain. We take the following measures. Firstly, based on classifying the WEEE, we consider a revenue sharing and cost sharing contract as the coordination mechanism. Secondly, under centralized and decentralized decisions, we use the game analysis technology to determine the optimal pricing and profits, respectively. Finally, we conduct the number simulation to illustrate and validate the proposed models and provide managerial insights. The results show that when retailers sell new and second-hand products simultaneously, consumers become more sensitive to recycling prices, the profits of manufacturers, recyclers and CLSC increase. However, the retailers' profits decline.

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Acknowledgements

This work is partially funded by the National Natural Science Foundation of China (71503103); The Humanities and Social Sciences of Education Ministry (17YJC640233); Natural Science Foundation of Jiangsu Province (BK20150157); Soft Science Foundation of Jiangsu Province (BR2018005); Jiangsu Province University Philosophy and Social Sciences for Key Research Program (2017ZDIXM034); the Fundamental Research Funds for the Central Universities (2019JDZD06) and the Tender Project from Wuxi Federation of Philosophy and Social Sciences (WXSK19-A-02)and Soft Science Foundation of Wuxi city(KX-19-A23). Even so, this work does not involve any conflict of interest.

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  1. School of Business, Jiangnan University, Lihu Lake Road 1800, Wuxi City, ZIP 214122, Jiangsu province, China

    Yong Liu, Zhen-juan Xia, Qian-qian Shi & Qian Xu

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  1. Yong Liu
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Liu, Y., Xia, Zj., Shi, Qq. et al. Pricing and coordination of waste electrical and electronic equipment under third-party recycling in a closed-loop supply chain. Environ Dev Sustain 23, 12077–12094 (2021). https://doi.org/10.1007/s10668-020-01158-2

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