Decision Models for a Dual-Recycling Channel Reverse Supply Chain with Consumer Strategic Behavior

Abstract

In this paper, waste electrical and electronic equipment (WEEE) is collected both with online and traditional methods in a reverse channel. We obtain a quantity for recycling based on online popularity and reference price by considering their impact on consumer recycling behaviors. On this basis, we build a Stackelberg game model in which the recycling dealer acts as the leader and the recycler acts as the follower in a reverse supply chain. We explore a combination contract comprising a revenue cost-sharing contract and a two-part tariff contract to enhance the performance of the reverse supply chain with a dual channel. The conclusion shows that the reference price degree can alleviate the recycling channel’s conflict in order to improve the operation efficiency of the reverse supply chain. The well-designed coordination mechanism enables the perfect coordination of the entire supply chain system.