Closed-loop supply chain coordination under stochastic demand and stochastic recycling

The coordination problem of closed-loop supply chain (CLSC) is studied under stochastic demand and stochastic recycling. Comparative analysis between centralized and decentralized decision shows that there will be efficiency loss under decentralized decision. However, single pricing contract could not achieve coordination. Hence two coordination methods are put forward. Through a numerical experiment the coordination methods are verified and analyzed. The result shows that the two methods can achieve perfect coordination of closed-loop supply chain which can be of great help and practical significance for relevant enterprises.