Regularity research on revenue fluctuation analysis of closed-loop supply chain considered carbon emissions

Abstract

A remanufacturing closed-loop supply chain system is composed by a manufacturer, a retailer and a third-party logistics service provider (3PL) under the consideration of carbon emission and cost. Three recovery scenarios, namely, retailer recovery, manufacturer recovery and 3PL recovery, which consider the recovery quality grades and recycler ability to deal with the disposal, are established. Based on Stackelberg game theory, three recovery modes under decentralized decision-making are compared, and the relationship between recovery modes and price decisions considered wholesale price, selling price and collection price is analyzed. The results show that the wholesale and selling price of remanufactured products is less related to recovery modes, while recycling price is directly related to the recovery quality, recovery path and carbon emissions of different recovery modes. Furthermore, enterprises will shift increased carbon emissions and operating costs to consumers. Finally, fluctuations of revenue and carbon emission are analyzed. The effects of carbon emission and cost factors in the recovery modes are analyzed through the numerical simulation. The recycling quality and recovery modes are related to the level of total profits and carbon emissions directly. It is benefit for the government and core enterprises to take appropriate measures for environmentally friendly models of recycling.