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Chinese Journal of Management Science ›› 2009, Vol. 17 ›› Issue (3): 72-80.

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Study on the Pricing and Coordinating Mechanism with Incomplete Information in Remanufacturing Reverse Supply Chain

LI Feng, SUN Hao, DA Qing-li   

  1. School of Economics and Management, Southeast University, Nanjing 210096, China
  • Received:2008-06-26 Revised:2009-05-15 Online:2009-06-30 Published:2009-06-30

Abstract: This paper discusses pricing strategies of aremanufacturing reverse supply chain consistod of one manufacturer and two retailers with random collection quantity. Feasible solutions and strategy sets are obtained under Stackelberg game and cooperative game with complete information; Then two optimal pricing contracts are achieved by signal screening method and incentive compatibility constraints with incomplete information. The research shows that the contract could avoid adverse selection effectively and make the market stable. Both the manufacturer and the retailers can earn more profits under the contracts. The manufacturer can control collection quantity by observing retailers. performance and punish the retailer who fails to finish the collection task. The retailer with higher-cost prefers to reduce the cost and gain more profit.

Key words: reverse supply chain, pricing, Stackelberg game, signal game

CLC Number: