Research on Repurchase Strategy of Closed-Loop Supply Chain Based on Price Game

In recent times more and more products are generally used in direct marketing. So, this study focuses on the issue of recalling defective products in a closed-loop supply chain from a single manufacturer and wholesaler for a single. This article uses game theory that is based on price to research the new product and recycled materials which have different sales prices and different market demand function in different circumstances. The article then studies the decentralized and centralized decision-making. Also, it examines Stackelberg equilibrium involved in the closed-loop supply chain partners. Finally, it provides methodology of buy-back strategy of manufacturers and wholesalers. In addition, a detailed theoretical support for products manufacturers and wholesalers to carry out a better recovery of defective products provided.