Research on Pricing Strategies of Dual Channel Reverse Supply Chain Considering Service Outsourcing in Multi-regional Situation

Abstract

The increasingly fierce competition in recycling market urges enterprises to actively open up the dual channel reverse supply chain with coexistence of online and offline recycling channels. In order to focus the main business on the disassembly and disposal of waste products, the recycling center has recently outsourced online recycling services including negotiation and consultation to professional third-party platform, which leads to the decision on selecting and optimizing recycling price and service level in different regions. This paper will focus on the dual channel reverse supply chain composed of recycling center, third-party platform and third-party recyclers from different regions, considering that the recycling center has outsourced recycling services to third-party platform, and build the decision model under unified pricing strategy and differentiation pricing strategy based on Stackelberg game theory and use numerical simulations to verify the research conclusion. The research shows that the reduction of service cost coefficient in one region will have a positive impact on the profits of recycling center and third-party platform, and negatively affect the profits of the third-party recyclers in this region. Compared with unified pricing strategy, differentiated pricing strategy can always bring the highest profit to recycling center, third-party recyclers and third-party platform.