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| Practical Analysis on Price Decision Model Under Closed-Loop Supply Chain |
| ZHANG Qian, ZHAO Ju-Hong, ZHANG Zhi-Xiang |
| (School of Economics and Finance, Huaqiao University, Quanzhou 362021, Fujian, China) |
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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 centralizeddecision 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.
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Received: 04 November 2011
Published: 29 December 2012
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