Environmental investment and operation strategy of sustainable supply chain considering resource reuse: based on Stackelberg game model

The establishment of reverse recycling channels by product retailers has effectively saved the use of resources and costs, and suppliers can also improve the production efficiency of products through investment in environmental protection. In order to study the supplier’s environmental investment and retailer’s product pricing decision in the recycling channel, a Stackelberg game model is established to study the sustainable supply chain management problem. The results show that the retailer’s increase in resource recycling channels effectively improves the consumers’ utility and reduces the consumers’ purchase price. Supplier’s investment in environmental protection has an obvious spillover effect, which increases the profit of the product retailer. However, this kind of environmental protection investment may not improve the profits of supplier itself. All members of the supply chain should cooperate in environmental protection investment to improve the performance of the entire supply chain.