A Portfolio Pricing Model and Contract Design of the Green Supply Chain for Home Appliances Industry Based on Retailer Collecting

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 and contract coordination theory. Considering the influences of the effective recycle behavior of the used home appliances to the whole supply chain, the paper proposes a game model for the portfolio pricing for the wholesale, retail and recycle price based on retailer recycling model. Then a revenue and expense-sharing contract model is designed to improve the game effects, by allocating both total revenues and expenses related to the manufacturing, retailing and recycling operations in the green supply chain among all participating players, thus maximizing the profits and effectiveness of the supply chain as a whole. The pricing models presented in this paper provide a practical and theoretical guidance for home appliances enterprises in making pricing decisions and supply chain contracts.