Pricing Strategies for Reverse Supply Chain of Electronic Waste Based on Game Theory
The pricing strategies of the reverse supply chain system of electronic waste (e-waste) consisted of recyclers and processors are proposed. The trapezoidal fuzzy membership functions are used to describe the uncertainty of the recycling price. The amount
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Abstract The pricing strategies of the reverse supply chain system of electronic waste (e-waste) consisted of recyclers and processors are proposed. The trapezoidal fuzzy membership functions are used to describe the uncertainty of the recycling price. The amount of recycling e-waste, the recycling price and the profits of recyclers and processors in cooperation and non-cooperation game decisions are presented. The simulated results show that the cooperation, the elasticity coefficients of price, the remanufactured rate, the recycling cost, the re-manufacturing cost and the government subsidy for non-recycled e-waste will affect the recycling price, the amount of recycling e-waste and the profits of recyclers and processors directly. The results in this paper can provide good guidance and reference for the operation of the e-waste reverse supply chain system. Keywords Electronic waste • Reverse supply chain • Price decision • Trapezoidal fuzzy number • Game theory
1 Introduction The electronic waste (e-waste) refers to all kinds of electronic products which nearly reach the end of their life cycle, such as the computer waste, the communication equipment waste, the household appliance waste, the electronic instrument and meter waste. The e-waste contains a large number of harmful materials such as
H. Sun • F. Hong Management School, Shanghai University, Shanghai, China Y. Xue (*) Shanghai Engineering Research Center of Digital Educational Equipment, East China Normal University, Shanghai, China e-mail: [email protected] W. Wang (ed.), Mechatronics and Automatic Control Systems, Lecture Notes in Electrical Engineering 237, DOI 10.1007/978-3-319-01273-5_63, © Springer International Publishing Switzerland 2014
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lead, cadmium and mercury. If the harmful materials are processed improperly, they will seriously threaten the natural environment and human life. At the same time, e-waste contains precious metals such as gold, silver and platinum. These precious metals have economic value by being processed effectively. Therefore, the reverse supply chain of e-waste plays an important role in the environmental protection, reducing the consumption of resources and achieving sustainable development. However, the market of the reverse supply chain of e-waste in China is still lacking of a reasonable pricing mechanism. In recent years, many scholars studied the reverse supply chain pricing [1, 2]. E-waste is more valuable than other wastes, and its recycling pricing is more complex. There is little work for e-waste reverse supply chain pricing. Wang (2006) discussed the pricing problem of e-waste reverse supply chain with three recycling models, including the national investment model, industry alliance model and manufacturer model. The results show that the manufacturer model of recycling system can obtain the maximal profit at the lowest price in competition [3]. Mitra (2007) analyzed the pricing problem of the mobile phone waste in India with achieving the maximum value of the revenue function. She
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