Location Model of Collector Based on the Variational Inequalities

This work develops a supply chain network equilibrium model to solve collector location problem. A collection corporation is established in an existing four-tier supply chain network which is composed of suppliers, manufacturers, distributors and consumer markets. The collection corporation is in charge of the dismantling of discarded products, the extraction of raw materials, the final disposal in accordance with the environmental protection requirements, after that, sending the parts can be recycled back to the manufacturer. Based on variational inequality theory, the new supply chain network equilibrium conditions of each level and whole network are discussed and a new location methods are put forward. Finally, a numerical analysis on a test case illustrates the model formulation. This study put the maximal profits of enterprises as a target, and a stable market price can be obtained by this model. In real economic activity, the new location methods can be applied easily.