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Published in:
2015 | OriginalPaper | Chapter
Allocation Proportion of Reward-Penalty Mechanism on Electronic Product Reverse Supply Chain
Authors : Wenbin Wang, Shuai Yang, Mingbao Cheng, Zuqing Huang
Published in: LISS 2014
Publisher: Springer Berlin Heidelberg
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Abstract
We study the allocation proportion problem of reward-penalty mechanism (RPM) on reverse supply chain (RSC) in equilibrium and get following conclusions: the allocation proportion of recyclers is always more than that of manufacturers under the RPM; the difficulty coefficients for the collection of waste electrical and electronic equipment (WEEE) and the target recycle rate are positively correlated with the allocation proportional coefficients, while the reward and penalty degree has negative correlation with the same coefficient; the recycle rate increases in the RPM, meanwhile the buy-back price of WEEE increases while the new product’s price decreases; too high target recycle rate will inhibit the collection rate from increasing.