Analysis of Factors Affecting the Profits of Closed-Loop Supply Chain Members Under Different Subsidy Objects

Based on the research hypothesis in a fully competitive closed-loop supply chain for mixed recycling channels, different closed-loop supply chain pricing models are established for the government’s strategy of adopting different subsidies (consumers, retailers, manufacturers or third-party recyclers). In this work, we use game theory to establish a price formula, and identify the factors affecting the profit of five closed-loop supply chain members. Through solution verification, the sales channel pricing, the recycling channel pricing and the channel member profit change of the closed-loop supply chain under different subsidy objects are compared after changing only one influencing factor. By providing a reference and suggesting how the government can control these factors, this study can assist the government to put subsidies in place, and optimize the operations of the closed-loop supply chain.