Abstract: Considering the importance of producer's responsibility arrangement on the sustainable development of “Zero Waste City”, from the view-point of reverse supply chain, manufacture and consumer are introduced into the model. This duales recycling means the recovery work completed by environmental sanitation enterprise and recycling enterprise. The respective optimal decision of these and their effects on the supply chain are further analyzed in supply chain economic activities. Therefore, the rationality of the model is verified. The research results prove that the price sensitivity of consumer has a significant impact on recovery quantity. Also, the competition status between recovery subjects can affect the healthy and continuous operation of this dual channel recovery closed loop supply chain. Moreover, the price decision of manufacture is of different influence on the strategy choice of other subjects.

Key words: loop supply chain, duales recycling, Stackelberg game, price sensitivity