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Research on the Impact of New Parts Price Increase on the Stability of Closed-Loop Supply Chain

Author

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  • Wei Duan

    (School of Economics and Management, Inner Mongolia University of Technology, Hohhot 010051, China
    Inner Mongolia Management Modernization Research Center, Hohhot 010051, China)

  • Hengli Cao

    (School of Economics and Management, Inner Mongolia University of Technology, Hohhot 010051, China
    Inner Mongolia Management Modernization Research Center, Hohhot 010051, China)

  • Desheng Xu

    (School of Economics and Management, Inner Mongolia University of Technology, Hohhot 010051, China
    Inner Mongolia Management Modernization Research Center, Hohhot 010051, China)

Abstract

In the closed-loop supply chain system of component remanufacturing, new parts suppliers are likely to be affected by certain factors that lead to sudden increases in supply prices, and this sudden increase in new parts prices may trigger the chain collapse of the closed-loop supply chain system and impact the stability of the closed-loop supply chain. Therefore, this paper combines closed-loop supply chain theory, evolutionary game theory, and system dynamics theory, which are internalized to construct a complex system model. Furthermore, the impact of different price increases of new parts on the stability of the closed-loop supply chain is analyzed through scenario simulation. The results show that a 25% increase in the price of new parts will delay the time for remanufacturers and retailers to reach a stable state of product flow, reduce the profitability of remanufacturers and retailers, and inhibit the willingness of remanufacturers to carry out high-green production in the early stage. A 50% increase in the price of new parts can break the closed-loop supply chain from the remanufacturer, severely undermining the stability of the closed-loop supply. According to the simulation results, this paper presents a timely government dynamic reward and punishment optimization scheme for remanufacturers to improve the tolerance level of the closed-loop supply chain for the price increase of new parts and to provide a reference for enhancing the stability of the closed-loop supply chain and optimizing the government supervision strategy.

Suggested Citation

  • Wei Duan & Hengli Cao & Desheng Xu, 2023. "Research on the Impact of New Parts Price Increase on the Stability of Closed-Loop Supply Chain," Sustainability, MDPI, vol. 15(16), pages 1-24, August.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:16:p:12587-:d:1220596
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    References listed on IDEAS

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    Cited by:

    1. Xin Lu & Fangchao Xu & Fan Qin, 2024. "Remanufacturing Operations in Different Financial Ownership Structures with Consideration of the Upwards Supplier," Sustainability, MDPI, vol. 16(8), pages 1-21, April.

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