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Research on Two-Way Logistics Operation with Uncertain Recycling Quality in Government Multi-Policy Environment

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  • Yue Tan

    (Business School of Sichuan University, Chengdu 610065, China)

  • Chunxiang Guo

    (Business School of Sichuan University, Chengdu 610065, China)

Abstract

With the emphasis on environmental protection issues, countries have introduced a number of circular economy-related policies aimed at guiding enterprises to green development and green innovation. At the same time, they are encouraged to strengthen the combination of forward logistics and reverse logistics, providing an effective way to improve resource shortages and reduce environmental pollution. However, the quality of recycled products in reverse logistics is often uncertain, which not only increases the risk of production decisions of remanufacturers, but also affects the sales of new products in the forward logistics to a certain extent. Based on the uncertainty of recycling quality of waste products and the controllability of remanufacturing technology level, this paper studies the impact of various regulatory environments on the operation of a two-way logistics system. We solve the decision model of the system through game theory. The results show that the government’s policy can improve product recycling quality and remanufacturing technology. However, recycling rewards and punishments, remanufacturing technology subsidies, and recycling payment factors need to be within a certain range to ensure the effectiveness of the trading market. When the recycling regulation has been implemented, it is beneficial for manufacturers to choose to improve their remanufacturing technology level. This means that the combined effect of multiple policies is more conducive to the operation of a two-way logistics system.

Suggested Citation

  • Yue Tan & Chunxiang Guo, 2019. "Research on Two-Way Logistics Operation with Uncertain Recycling Quality in Government Multi-Policy Environment," Sustainability, MDPI, vol. 11(3), pages 1-18, February.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:3:p:882-:d:204315
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    3. Deng Li & Ying Peng & Chunxiang Guo & Ruwen Tan, 2019. "Pricing Strategy of Construction and Demolition Waste Considering Retailer Fairness Concerns under a Governmental Regulation Environment," IJERPH, MDPI, vol. 16(20), pages 1-24, October.
    4. Wang, Jian & He, Shulin, 2023. "Government interventions in closed-loop supply chains with modularity design," International Journal of Production Economics, Elsevier, vol. 264(C).
    5. Xiaoxiao Chang & Guangye Xu & Qian Wang & Yongguang Zhong, 2020. "A Game Theoretic Approach for Eco-Design and Remanufacturing Considering Take-Back Policy," Sustainability, MDPI, vol. 12(17), pages 1-21, September.
    6. Lingyun Mi & Ting Xu & Xiaoli Gan & Hong Chen & Lijie Qiao & Hanlin Zhu, 2019. "How to Motivate Employees’ Environmental Citizenship Behavior through Perceived Interpersonal Circle Power? A New Perspective from Chinese Circle Culture," Sustainability, MDPI, vol. 11(17), pages 1-15, August.
    7. Jintao Zhang & Zhen Yang & Li Meng & Lu Han, 2022. "Environmental regulations and enterprises innovation performance: the role of R&D investments and political connections," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(3), pages 4088-4109, March.
    8. Wang, Zhen & Duan, Yongrui & Huo, Jiazhen, 2022. "The impact of government intervention measures on recycling of waste electrical and electronic equipment in China considering consumer decision," Energy Policy, Elsevier, vol. 160(C).
    9. Zongsheng Huang, 2020. "Stochastic Differential Game in the Closed-Loop Supply Chain with Fairness Concern Retailer," Sustainability, MDPI, vol. 12(8), pages 1-21, April.
    10. Arijit Bhattacharya & Shefali Srivastava & Abhijit Majumdar, 2024. "Circular supply chains in manufacturing—Quo vadis? Accomplishments, challenges and future opportunities," Business Strategy and the Environment, Wiley Blackwell, vol. 33(5), pages 4397-4423, July.
    11. Liping Song & Yingluo Yan & Fengmin Yao, 2020. "Closed-Loop Supply Chain Models Considering Government Subsidy and Corporate Social Responsibility Investment," Sustainability, MDPI, vol. 12(5), pages 1-27, March.
    12. Fiorillo, Fabio & Merkaj, Elvina, 2024. "Municipal strategies, fiscal incentives and co-production in urban waste management," Socio-Economic Planning Sciences, Elsevier, vol. 92(C).
    13. Dingzhong Feng & Xinghui Yu & Yongbo Mao & Yangke Ding & Ye Zhang & Zhiyan Pan, 2019. "Pricing Decision for Reverse Logistics System under Cross-Competitive Take-Back Mode Based on Game Theory," Sustainability, MDPI, vol. 11(24), pages 1-20, December.

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