Pricing strategies with recycled products in Reverse Supply Chain

Using the game theory, a Reverse Supply Chain(RSC) consisting of one manufacturer and two distributors is discussed in the paper. Under the circumstances of both cooperative and non-cooperative member enterprises in the Reverse Supply Chain, a decision-making model is built based on the overall volumes of recycled products and the recycling price as well as the reclaim hard of the distributors separately. Pricing and investment strategies for the recycled products are proposed. Conclusion is drawn that the maximum profit is obtained under the Reverse Supply Chain with the three member enterprises cartelization.