Portfolio Pricing Models under Different Collecting Methods in the Green Supply Chain for Home Appliances Industry

From the perspectives of the operational objectives of the green supply chain management and in consideration of its economic efficiency, social and environmental impact as well as its unique characteristics, this paper examines the pricing issues of the green supply chain for home appliances industry by using game theory. Considering the influences of the effective recycle behavior of the used home appliances on the whole supply chain, the paper proposes three game models for the portfolio pricing for the wholesale, retail and recycle price under three different collection methods respectively. The three collection methods are 1) manufacturer collection (Model M), 2) retailer collection (Model R) and 3) third-party collection (Model 3P). Then the paper analyzes how the wholesale price, the retail price for green home appliances, the recycle price for the used home appliances, and the total channel profits are affected by the choice of the collection methods. The pricing models presented in this paper provide a practical and theoretical guidance for home appliances enterprises in making pricing decisions.