Research on the Complexity and Chaos Control about a Closed-Loop Supply Chain with Dual-Channel Recycling and Uncertain Consumer Perception

• Published in: Complexity (New York, N.Y.) Vol. 2018; no. 2018; pp. 1 - 13
• Main Authors: Zhu, Meihong, Yu, Miao, Ren, Hao, Ma, Junhai
• Format: Journal Article
• Language: English
• Published: Cairo, Egypt Hindawi Publishing Corporation 01-01-2018; Hindawi; John Wiley & Sons, Inc; Hindawi Limited; Hindawi-Wiley
• Subjects: Channels; Chaos theory; Competition; Complexity; Computer simulation; Decision making; Entropy; Game theory; Initial conditions; Literature reviews; Logistics; Mathematical models; Modularity; Numerical analysis; Perception; Recycling; Remanufacturing; Strategic management; Supply chains; China
• ISSN: 1076-2787; 1099-0526
• DOI: 10.1155/2018/9853635

According to game theory, chaotic dynamics theory, and complexity based on the literature review about the pricing strategy and recycling channels of the closed-loop supply chain, on the background of the widespread hybrid recycling channels in Chinese electronic products market, this paper builds a closed-loop supply chain model with dual-channel recycling composed of one manufacturer and one third-party. We assume that the consumer perception towards the remanufacturing products is uncertain and limited. We carry on theoretical analysis of this model and perform numerical simulations from the perspective of entropy theory. Results show that a precipitous speed of recycling price adjustment of the manufacturer or the third-party will both lead the system into a chaotic state and cause the entropy of the system to increase. The system is sensitive to initial conditions in this chaotic condition. Focusing on the harmful effects of chaotic system, we introduce adjustment parameter to efficiently control the chaos. The results have a strong reference value to practical problems, so it has a great value in both theory and application.