Game Models for the Pricing of the Green Supply Chain for Home Appliances Industry
|School||Dalian University of Technology|
|Course||Management Science and Engineering|
|Keywords||Green supply chain pricing game game models home appliancesndustry coordination with contract|
From the perspectives of the operational objectives of the green supply chain and in consideration of its economic efficiency, social and environmental impact as well as its unique characteristics, this research examines the pricing issues of the green supply chain for home appliances industry. This research draws on various theories, including, but not limited to, marketing management, supply chain management, and game and contract. It proposes a government-intervention pricing methodology of recycling used home appliances. It presents game models for the pricing of recycling used home appliances and game models for the portfolio pricing that includes three factors, the wholesale, the retail and the recycling price. Revenue and expense-sharing contract models are respectively designed to improve the game effect. Specifically, this paper focuses on the following:(1) Analysis of the system structure and complexity of the pricing of the green supply chain for home appliances industry. Based on the characteristics of the green supply chain and the current practices of the home appliances industry, the paper establishes a new structural model and analyzes its three main participants, i.e., governments, home appliances enterprises and consumers. Comparing with the traditional one, this paper analyzes the complexity of the government-intervention pricing issues of the green supply chain for home appliances industry so as to provide a basis for the construction of the pricing game models.(2) Game models for the pricing of the government’s subsidy in the green supply chain for home appliances industry. The paper proposes a specific two-player game model between governments and enterprises and a three-player game model among governments, enterprises and consumers, and makes respective equilibrium analysis to argue for the necessity and principles for governments to set the subsidy price.(3) Game models for the pricing of recycling used home appliances when a pre-set wholesale and retail price already exists. Using the price for recycling used home appliances as a variable in the decision-making process, this session of the paper studies the pricing decision-making process of the home appliances enterprises when a wholesale and retail price for the green home appliances has already been determined by other methods. In consideration of the influences of the effective recycle behavior of the used home appliances to the whole supply chain, a new demand function was created. Then game models about the recycle pricing for the used home appliances are presented based on different recycling modes, i.e., manufacturer recycling (Model M, for short), retailer recycling (Model R, for short) and third-party recycling (Model3P, for short). Revenue and expense-sharing contracts are designed to coordinate the supply chain so as to improve the performance of the green supply chain in terms of the recycle of the used home appliances.(4) Game models for the portfolio pricing for the wholesale, retail and recycle price. From the perspective of the whole supply chain, the paper proposes game models for the portfolio pricing based on different recycling modes. Revenue and expense-sharing contract models are designed respectively to improve the game effects, by allocating both total revenues and expenses related to the manufacturing, retailing and recycling operations in the green supply chain among all participating players, thus maximizing the profits and effectiveness of the supply chain as a whole.(5) A case study. Using the green supply chain of GREE freon-free and inverter air-conditioner as a case study, this paper applies its various pricing models to see if those models stand the reality test.This research proposes an alternative model to solve the pricing problems of the complicated supply chain operations, especially the green supply chain. It helps enhance the supply chain management theories and the pricing methodologies and theories and particularly, it adds to the theories of the green supply chain management. The pricing models presented in this paper for the green supply chain of the home appliances industry provides a practical and theoretical guidance for home appliances enterprises in making pricing decisions and supply chain contracts. It is also of significance in improving the effectiveness and efficiency of the whole supply chain.