Design of an Incentive Mechanism for ELVs Recycling Industry Chain

End-of-life vehicles (ELVs) are important renewable resources. In order to improve the recovery rate of ELVs, it is necessary to build an ELVs recycling industry chain of high efficiency and benefit. It needs participants of the industry chain to realize the organic integration collaborative development of resources, technology, information and business processes through the relevant contract mechanism. An incentive mechanism is the important mechanism of a contract. As an example, this article builds a relative model which is based on the design of the re-purchase contract between disassembly centers of ELVs and reuse centers. Also, this article analyses and verifies the model through a numerical example.