Joint Pricing Model on Three-Echelons Reverse Supply Chain

The pricing problem is an important issue in there verse supply chain (RSC) research. Contrasting with the traditional two-echelons RSC, we propose a three-echelons reverse network with a public reverse distribution, in which the tasks of reverse logistics and pre-remanufacturing processes are transferred form retailer and manufacturers to reverse distribution center. For reducing the game relations of the alliance, only manufactures and reverse distribution center participate making the pricing decision. The pricing problem is divided two echelons, one is the pricing decision between consumers and system, and another is the pricing decision inside the system (between public distribution center and manufactures). Lastly, the models of two echelons are jointed to get solution. In the end of paper, we discuss the limitations about the environmental legislation and economics of scale.