Pricing Strategies of Closed Loop Supply Chain with Uncertain Demand Based on Ecological Cognition

With the consumer’s ecological cognition becoming more and more higher, remanufacturing has became a trend. It is imperative for contemporary enterprises to find out some ways to balance the profit of supply chain and the government. In this paper, we consider the closed loop supply chain that consists of the manufacturer, retailer and consumers. The retailer is responsible for the acquisition of used products from consumers, and sold them together to the manufacturer. Then the manufacturer producing new products and remanufactured products, they were sold together in the market. Based on the ecological cognition and value judgment of consumers, it is easy to derive the demand quantity of remanufactured products and new products. First, we formulate the cooperative and competitive game model to investigate the manufacturer’s and retailer’s pricing strategy. Next, in the case of different ecological cognition, we studied the behavior of government subsidy. A mathematical model is presented to formulate the problem to get the optimal decision for the government. Finally, we compare the characteristics of the two models, and draw the corresponding conclusions.