Volume 56, Number 6, November-December 2022
|Page(s)||4063 - 4081|
|Published online||29 November 2022|
How to subsidizing the used apparel recycling supply chains effective? An analysis based on the game framework
College of Management and Economics, Tianjin University, Tianjin, P.R. China
* Corresponding author: firstname.lastname@example.org
Accepted: 28 October 2022
Motived to find the optimal subsidy strategies in the used apparel recycling supply chains, this paper establishes a benchmark recycling model including a brand retailer and a remanufacturer, and extends the benchmark model based on different subsidy scenarios: (a) the government subsidizes the remanufacturer, (b) the government subsidizes the retailer’s remanufacturing part, (c) the government subsidizes all recycled apparel from the retailer. The constructed models show some interesting results. (1) Both the strategies (a) & (b) drove the same recycling efforts. The remanufacturer maybe mistakenly believe its profits could increase with the lower procurement price in scenario (b). However, the profits were the same in both scenarios. (2) The strong consumer sensitivity to recycling efforts not only increases the retailer’s profits but also drops the remanufacturer’s profits. Therefore, strong consumer sensitivity is only good for some players. (3) The donation ratio should be within a reasonable range. Otherwise, the remanufacturer’s profit decreases, and even the remanufacturer withdraws from the supply chain. (4) The optimal subsidy strategy for the supply chain members is that the government subsidizes all recycled from the retailer. Based on our findings, some management insights and suggestions are presented.
Mathematics Subject Classification: 91A40 / 91B24
Key words: Consumer sensitivities / recycling efforts / apparel industry / subsidy / game theory
© The authors. Published by EDP Sciences, ROADEF, SMAI 2022
This is an Open Access article distributed under the terms of the Creative Commons Attribution License (https://creativecommons.org/licenses/by/4.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Current usage metrics show cumulative count of Article Views (full-text article views including HTML views, PDF and ePub downloads, according to the available data) and Abstracts Views on Vision4Press platform.
Data correspond to usage on the plateform after 2015. The current usage metrics is available 48-96 hours after online publication and is updated daily on week days.
Initial download of the metrics may take a while.