Analysis on supply chain strategy with logistic service provider under different recovery conditions

For the closed-loop supply chain with third party logistics service provider, the pricing decisions in both cooperative and non-cooperative game ways are investigated by using Stackelberg game theory in manufacturer recovery closed-loop supply chain and tradesman recovery closed-loop supply chain models. Through the comparison of the equilibrium solutions of independent and joint decisions, it is theoretically proved that the retail price is reduced, the recycling price is appreciated, and the recycled product quantity and the profit of the whole reverse supply chain system are all increased under the cooperative game ways. Thus such joint pricing will advantage to businessmen, consumers and the environmental protection. Finally, the conclusions proposed in the paper are verified with a numerical example.