Pricing Strategy of Dual-Channel Closed-Loop Supply Chain Considering Quality of Recycled Mobile Phone and Effort Cost

Abstract

In the age of mobile Internet, as a kind of unique and necessary fast consumer electronic product with product volume, function attribute and value content, mobile phone’s recycle and reuse have become a widely concerned social problem. Considering the influence of the quality level and effort cost of recycled mobile phones on the recycling profit, this paper constructs a decision-making model of the dual-channel mobile phone closed-loop supply chain composed of the manufacturer, distributor and the third-party online recycling platform to solve the optimization problem of the dualchannel closed-loop supply chain. This paper gains the optimal retail price and the quality level of recycled mobile phones under decentralized and centralized decision-making by applying the game theory. The results show that the total profit and mobile phone quality level of closed-loop supply chain are higher than that of decentralized decision, too much efforts cost can lead to the loss of phone quality and profits, the quality of recycled mobile phone and effort cost is the key to the profit of supply chain.