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3025. Optimal recycling strategies of closed-loop power battery supply chain considering informal recycling channels
Invited abstract in session WB-23: Recycling, stream Circular Economy, Remanufacturing and Recycling .
Wednesday, 10:30-12:00Room: 82 (building: 116)
Authors (first author is the speaker)
| 1. | Songsong Liu
|
| School of Management, Harbin Institute of Technology | |
| 2. | Feiyu Jin
|
| School of Management, Harbin Institute of Technology |
Abstract
The early electric vehicle power batteries have entered the retirement outbreak period in China. Although vehicle manufacturer is responsible for power battery recycling as required by policy, informal recycling channel is disrupting the normal order of recycling market. This work establishes three real situations based recycling modes in closed-loop power battery supply chain, consisting of manufacturer, retailer, cascade utilization enterprise, and informal recycling channel. Using Stackelberg game model, the optimal recycling strategies of closed-loop power battery supply chain under decentralized and centralized decision-making are obtained based on backward induction. Then, fair profit distribution schemes are designed for the three models under centralized decision-making. By validation through computational simulation, the results show that: (1) Under the decentralized decision-making, the profits of retailers and cascade utilization enterprises are severely squeezed by the informal recycling channel; (2) Under the centralized decision-making, informal recycling channel erodes retailers’ profit by eroding theirs recycling volume, while the manufacturers’ profit is not affected by the change in supply chain structure. This work enriches the theoretical literature by considering the informal recycling channel in the closed-loop power battery supply chain, and provides guidance to the formal recycling enterprises to compete with the informal recycling channels.
Keywords
- Supply Chain Management
- Game Theory
- Reverse Logistics / Remanufacturing
Status: accepted
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