Abstract:
EPR holds the manufacturer responsible for collecting and recycling the end of life product. A two-stage closed-loop supply chain was constructed to study the impact of dual responsibility on the incentive to recycle,resulting quantity and profits under different kinds of modes. The optimal production decision and the optimal profit in different modes were solved and compared by game. The conclusions are as follows:When the fixed collection cost is small enough, product recovery savings cost is large enough, the manufacturer has actively involved in recycling, while the recycling rate under decentralized supply chain is higher, but the profit under centralized supply chains is higher. Under government regulation,the dual responsibility improves the environmental benefits of the supply chain,and also reduces the economic benefits of it. When the cost of accessing raw materials or the disposal costs are too high,manufacturers tend to choose the higher recycling rate formulated by the government. When distributors have the advantage of collection cost,manufacturers share the collection target with the distributor in order to achieve responsibility sharing and realize Pareto improvement.