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Discrete Dynamics in Nature and Society
Volume 2017, Article ID 8152365, 12 pages
https://doi.org/10.1155/2017/8152365
Research Article

System Dynamics Modelling of Remanufacturing and Recycling Mode Based on Closed-Loop Across-Chain Competition

1Computer Science and Technology Postdoctoral Programme, Harbin University of Science and Technology, Harbin 150080, China
2School of Computer Science and Technology, Harbin University of Science and Technology, Harbin 150080, China

Correspondence should be addressed to Shidi Miao; moc.621@gnikdsm

Received 19 April 2017; Revised 21 June 2017; Accepted 22 June 2017; Published 21 August 2017

Academic Editor: Gabriella Bretti

Copyright © 2017 Shidi Miao et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

To face the reality of resources exhaustion, the significance of recycling and remanufacturing in the closed-loop chain has become quite evident. This paper constructs a competitive recycling and remanufacturing model of the closed-loop supply chain through a case study of Midea Corp. and Gree Corp. and explores the impact of two recycling modes on total revenue of the supply chain and market share. The simulation results show that the total revenue of the supply chain will benefit from the increasing coverage points by the third party and the increasing environmental awareness of certain regions. The retailers show more enthusiasm of recycling through certain amendment of the contract between manufacturers and retailers. The time of payment could be shortened in closed loop. Moreover, the improvement of recycling mechanism of the retailers can enlarge the share of supply chain market. Guiding role of the proposed model and the simulation results played in establishing a better supply chain mode is presented.