The Impact of an Uncertain Supply of Recycled Materials on Symbiotic Supply Chains : Pricing, Production Strategies, and Environmental Implications
Considering the uncertainty of the amount of recycled material in symbiotic supply chains, this paper concentrates on the price and quantity decisions of members in symbiotic supply chains and the resulting economic and environmental impacts. We derive optimal solutions for the manufacturer and the symbiotic supplier. In addition, we obtain conditions for different degrees of symbiosis by comparing various decisions. Our analysis suggests that the decisions of all stakeholders are affected by a combination of effective purchasing costs per unit and factors internal and external to the enterprise. That is, both technology and markets influence the level of symbiosis. A complete symbiosis model is established when the unit effective purchase cost of the recycled material is lower than the price of the original raw material. If not, a partial symbiosis model is established. Furthermore, through sensitivity and comparative analysis, we find that the price of recycled materials, the number of orders, and the profitability of each party in the symbiotic supply chain are influenced by the symbiotic model and external conditions. Finally, symbiotic cooperation does not necessarily reduce the total environmental impact but generally reduces the environmental impact per unit of production in the symbiotic supply chain. Through numerical experiments, we further investigated the impact of different game situations between the symbiotic supplier and supplier on sourcing and pricing strategies. The results show that the manufacturer benefits regardless of the game scenario compared to when the raw material price is at a stationary level. On the supply-side, the supplier is in a more advantageous position in Bertrand game, and henceforth the symbiotic supplier is in Stackelberg game
Year of publication: |
2023
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Authors: | Yang, Lifan ; Si, Yinyuan ; Liu, Sen ; Yang, Dan |
Publisher: |
[S.l.] : SSRN |
Saved in:
freely available
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