Design of Incentive Mechanism Strategy in the Manufacturing/Remanufacturing System

In this paper on the side of manufacturer, studies show that incentive mechanisms for manufacturer to promote retailers is more prevalent to increase return effect level in the manufacturing/remanufacturing system which is composed of one manufacturer and two retailers. With the use of the game theory and the economics of information, the influence of profit of manufacturer and retailers brought about by the incentive mechanism is studied by keeping the condition of return quantity as random. This verifies the incentive mechanisms effect of close-loop supply chain in improving operation benefit, at the end, a numerical example has been given to verify the relevant conclusion.