Strategies for Reverse Logistics of E-commerce Company Electronic Waste based on Game Theory
DOI: https://doi.org/10.62517/jbdc.202401409
Author(s)
Jun Xie, Fagang Hu*, Ruimin Ding
Affiliation(s)
School of Business, Suzhou University, Suzhou, Anhui, China
*Corresponding Author.
Abstract
The main parties involved in the process of implementing reverse logistics for electronic waste include e-commerce companies, service agencies, and individual consumers. This study utilizes game theory models and modern applied mathematics to focus on analyzing the interest relationships between e-commerce companies and various service agencies, as well as between e-commerce companies and individual consumers in China. An economic game relationship model is constructed to analyze the specific strategies and choices of each party. Game relationship between e-commerce companies and service agencies reveals that regulatory intensity and economic incentive mechanisms play a decisive role in motivating companies to participate in reverse logistics. By increasing rewards or penalties, service agencies can effectively promote companies to implement reverse logistics, achieving a balance between resource recovery and ecological protection. Game relationship between e-commerce companies and consumers indicates that consumers' environmental awareness and reporting behavior significantly influence corporate decisions. When consumers lack the willingness to participate due to high costs or low rewards, companies are more inclined not to implement reverse logistics. Conversely, appropriately increasing consumer reporting rewards and enhancing environmental awareness can drive companies to more actively establish reverse logistics systems.
Keywords
Reverse Logistics; Game Theory; Electronic Waste
References
[1] M. P. de Brito, R. Dekker. A Framework for Reverse Logistics. In: R. Dekker, M. Fleischmann, K. Inderfurth, L. N. Van Wassenhove (Eds.), Reverse Logistics. Springer, Berlin, Heidelberg, 2004.
[2] Govindan Kannan, Hamed Soleimani, Devika Kannan. Reverse logistics and closed-loop supply chain: A comprehensive review to explore the future. European Journal of Operational Research, 2015, 240(3): 603-626.
[3] Kuşakcı Ali Osman, Ayvaz Berk, Cin Emine, Aydın Nezir. Optimization of Reverse Logistics Network of End of Life Vehicles under Fuzzy Supply: A Case Study for Istanbul Metropolitan Area. Journal of Cleaner Production, 2019, 215:1036 - 1051.
[4] C. M. U-Dominic, I.J. Orji, M. Okwu. Analyzing the Barriers to Reverse Logistics (RL) Implementation: A Hybrid Model Based on IF-DEMATEL-EDAS. Sustainability, 2021, 13(19):10876.
[5] G. B. Fanta, L. Pretorius. Supporting circular economy in healthcare through digital reverse logistics. 2022 IEEE 28th International Conference on Engineering, Technology and Innovation (ICE/ITMC) & 31st International Association for Management of Technology (IAMOT) Joint Conference, Nancy, France, 2022.
[6] X. Sun, H. Yu, W.D. Solvang. Towards the smart and sustainable transformation of Reverse Logistics 4.0: a conceptualization and research agenda. Environmental Science and Pollution Research, 2022, 29:69275 - 69293.
[7] Péter Egri, Balázs Dávid, Tamás Kis, Miklós Krész. Robust facility location in reverse logistics. Annals of Operations Research, 2023, 324(1):163-188.
[8] Al-Amin Abba Dabo, Amin Hosseinian-Far. An Integrated Methodology for Enhancing Reverse Logistics Flows and Networks in Industry 5.0. Logistics. 2023, 7(4):97.
[9] Biancolin Marta, Capoani Luigi, Rotaris Lucia. Relationship between Reverse Logistics and Circular Economy: A Literature Review. In: Ksibi Mohamed, Sousa Arturo, Hentati Olfa, Chenchouni Haroun, Lopes Velho José, Negm Abdelazim, Rodrigo-Comino Jesús, Hadji Riheb, Chakraborty Sudip, Ghorbal Achraf (eds.). Recent Advances in Environmental Science from the Euro-Mediterranean and Surrounding Regions (4th Edition). Cham: Springer Nature Switzerland, 2024.
[10] Katherinne Salas-Navarro, Lia Castro-García, Karolay Assan-Barrios, Karen Vergara-Bujato, Ronald Zamora-Musa. Reverse Logistics and Sustainability: A Bibliometric Analysis. Sustainability, 2024, 16(13):1-32.
[11] Ministry of Ecology and Environment of the People's Republic of China. Annual Report on the Prevention and Control of Solid Waste Pollution in Large and Medium-sized Cities in China in 2020. December 2020.