Study on competition of recovery business of closed-loop supply chain

Recycling business competition is typical situation in the closed-loop supply chain recovery process, which is obvious different from existing research hypotheses of closed-loop supply chain model study. Through considering to recovery price´s sensitivity of consumer, this paper establishes a closed-loop supply chain recovery model based on competitive recovery business as an example of the retail merchant recovery channel. The model studies relation between different recovery cost and price-sensitive coefficient and quantity, total profits of recovers process. Through the model analysis, this paper draws some conclusion: dispersion recovery profit is higher, but the recovery price is low, and recovery quantity is few. Finally, this paper proposes some measures to reduce recovery cost and joint recovery in order to improve enhance recovery quantity.