Integration and Optimization of the Closed-Loop Supply Chain Based on Random Demand and Random Recycling

In the environment of asymmetric information, the traditional Stackelberg game strategy is to be changed, and at the same time, the focus of the supply chain is to be shifted towards the lower stream. This paper discusses the integration and optimization of the closed-loop supply chain based on random demand in three different recycling models. The expected profit functions of the manufacturer, the retailer, and the third party are acquired in these models, and the equilibrium of profit sharing among different levels of the supply chain is reached through the game theory and upstream incentives. The paper also discusses the ways for each recycling model to affect the wholesale price, retail price, and the profit of the whole channel, compares and analyses their differences in both stimulating the recycling and the supply chain profit.