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A System Dynamics Model to Evaluate Effects of Retailer-Led Recycling Based on Dual Chains Competition: A Case of e-Waste in China

Author

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  • Renzheng Xue

    (School of Computer Science and Technology, Harbin University of Science and Technology, Harbin 150080, China
    School of Computer and Control Engineering, Qiqihar University, Qiqihar 161000, China)

  • Fengbin Zhang

    (School of Computer Science and Technology, Harbin University of Science and Technology, Harbin 150080, China)

  • Feng Tian

    (Newcastle Business School, Faculty of Business and Law, University of Newcastle, Australia, University Drive, Callaghan, NSW 2308, Australia)

Abstract

China, as the largest electronic waste producer in the world, is facing a critical challenge to manage its negative impacts on the environment. Hence, e-waste management is crucial for sustainable Chinese economic development. In this paper, a system dynamics model is adopted to identify the effects of retailer-led recycling based on closed-loop dual chains competition. The influence of contracts made by manufacturers on different retail modes is also discussed. From the aspects of total revenue (TR), market share (MS) and market competitiveness (MC), this paper analyzes the impact of e-waste recycling coefficient (ERC) on supply chain and analyzes the equilibrium solution of total supply chain return. The research results show that the contract incentive mechanism can improve the retailer’s recycling enthusiasm, and the effect on the retail mode of executive shop is more obvious. When the ERC is adjusted to 44.3%, the TR of supply chain is optimal, and the MS and MC occupy an obvious advantage.

Suggested Citation

  • Renzheng Xue & Fengbin Zhang & Feng Tian, 2018. "A System Dynamics Model to Evaluate Effects of Retailer-Led Recycling Based on Dual Chains Competition: A Case of e-Waste in China," Sustainability, MDPI, vol. 10(10), pages 1-18, September.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:10:p:3391-:d:171610
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    Cited by:

    1. Jixiang Zhang & Chen Zhu, 2020. "Research on the Dynamic Pricing and Service Decisions in the Reverse Supply Chain considering Consumers’ Service Sensitivity," Sustainability, MDPI, vol. 12(22), pages 1-21, November.
    2. Camelia Delcea & Liliana Crăciun & Corina Ioanăș & Gabriella Ferruzzi & Liviu-Adrian Cotfas, 2020. "Determinants of Individuals’ E-Waste Recycling Decision: A Case Study from Romania," Sustainability, MDPI, vol. 12(7), pages 1-28, April.
    3. Camilo Llerena-Riascos & Sebastián Jaén & Jairo Rafael Montoya-Torres & Juan G. Villegas, 2021. "An Optimization-Based System Dynamics Simulation for Sustainable Policy Design in WEEE Management Systems," Sustainability, MDPI, vol. 13(20), pages 1-23, October.
    4. Umangi Pathak & Ravi Kant & Ravi Shankar, 2020. "Effect of buyback price on channel’s decision parameters for manufacturer-led close loop dual supply chain," OPSEARCH, Springer;Operational Research Society of India, vol. 57(2), pages 438-461, June.
    5. Hilal Shams & Altaf Hossain Molla & Mohd Nizam Ab Rahman & Hawa Hishamuddin & Zambri Harun & Nallapaneni Manoj Kumar, 2023. "Exploring Industry-Specific Research Themes on E-Waste: A Literature Review," Sustainability, MDPI, vol. 15(16), pages 1-22, August.
    6. Xiuli Yang & Xin Miao & Jinli Wu & Ziwei Duan & Rui Yang & Yanhong Tang, 2020. "Towards Holistic Governance of China’s E-Waste Recycling: Evolution of Networked Policies," IJERPH, MDPI, vol. 17(20), pages 1-21, October.

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