Abstract: In order to raise the recovery rate and improve operational efficiency in remanufacturing closed-loop supply chain, this paper theoretically constructs contract-recycling system. Through this system, the recovery condition will be improved while urging enterprises obtaining more benefits and we hope to enhance consumer recycling awareness and behavior, and thus solve the existing problem of recovery information asymmetry. In considering the basic premise that both new and remanufactured products are sold in the market and different products recognition does exist, the impact is mainly discussed that the contract-recycling system will bring to the scale of industry,recovery rate and pricing with manufacturers(M mode), retailers(R mode) and the third-party recyclers(3P mode) as the main body respectively. A mathematical model is built to, solve the optimal solution of the model through Kuhn Tucker's theorem, then use the mathematical derivation and mathematical simulation are carried on, and finally proposals or comments for government, consumers and firms optimal decisions are proposed. Researches show that: consumers benefit from the contract-recycling system;contract-recycling system strengthens the scale of the closed-loop supply chain;the recovery rate of used products is in proportion to the evaluation of remanufactured products and inversely proportional to that of new products, and the recovery rate will definitely raise in model R and model 3P due to the contract-recycling system; manufacturers always profit from contract-recycling system, but retailers and the third-party recyclers do conditionally. A certain reference for the contract relationship between enterprises and consumers is provided, and a certain contribution for the protection of consumer rights and the improvement of the operation efficiency of remanufacturing industry are made.

Key words: contract-recycling system, remanufacture, closed-loop supply chain, analog simulation