A Research on Government Subsidy Strategy of Closed-loop Supply Chain Considering Product Green Degree

doi:10.3969/j.issn.1007-7375.2020.06.003

Abstract

Abstract: In order to study the influence of government subsidy strategies on the decision-making of each subject in the closed-loop supply chain, considering product green degree, a two-stage Stackelberg game model is constructed. In this model, manufacturers and retailers are game leaders and game followers, respectively. Aiming at the two major expenditures of manufacturers in the process of recycling used products, a recycling activity investment subsidy strategy (SI subsidy strategy) and a recycling product remanufacturing cost subsidy strategy (SC subsidy strategy) were designed. The advantages and disadvantages of subsidy strategies are compared and analyzed from two perspectives: the same subsidy rate and the same subsidy efficiency per unit. The results show that: (1) no matter what kind of subsidy strategy, within the range of reasonable subsidy rates, the profits of all entities in the closed-loop supply chain increase as the subsidy rate increases; (2) Using the same subsidy rate as the evaluation standard, the SC subsidy strategy is superior to the SI subsidy strategy; (3) Taking the subsidy efficiency of the same subsidy amount as the evaluation standard, the SI subsidy strategy is superior to the SC subsidy strategy.

Key words: product green degree, government subsidy, closed-loop supply chain, social welfare

CLC Number:

F272

LUO Fuzhou, WANG Wenxin. A Research on Government Subsidy Strategy of Closed-loop Supply Chain Considering Product Green Degree[J]. Industrial Engineering Journal, 2020, 23(6): 18-27.

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