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Mathematical Problems in Engineering
Volume 2016, Article ID 1049514, 9 pages
Research Article

A Study of the Closed-Loop Supply Chain Coordination on Waste Glass Bottles Recycling

School of Logistics, Yunnan University of Finance and Economics, Kunming 650221, China

Received 2 February 2016; Accepted 17 April 2016

Academic Editor: Rosa G. González-Ramírez

Copyright © 2016 Wenxue Ran 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.


The recycling of waste products can sharply save manufacturing cost and improve the economic efficiency and corporate-reputation. It also has a great effect on the environment and resources protection. In the management of the closed-loop supply chain, the recycling of waste products and decision-making on pricing often directly affect the supply and demand of products and the operation efficiency of supply chain. Therefore, first we take waste glass bottles as an example and establish a mathematical model to solve the profit of manufacturers and retailers solely. Then, we analyzed whole supply chain profit under a dual-channel recycling condition which is directly recycled by consumers or by retailers. Finally, we concluded that no matter what product’s price, quality, profit, or operational efficiency of supply chain is, the overall recycling is better than the single node recycling model. Based on the analysis, we developed a new model to coordinate the profit of manufacturers and retailers in the supply chain with revenue-sharing contract. A numerical study shows that this approach is applicable and effective.