University of Science & Technology Beijing
The National Natural Science Foundation of China (General Program, Key Program, Major Research Plan)，Social Science Fund Project of Beijing Municipal Education Commission
It is deserved to research the closed supply chain coordination considering the manufacturer"s recycling behavior under asymmetric information. The recovery rate changes dynamically with time and the manufacturer"s remanufactured cost information is private. By constructing a decentralized decision model, the optimal equilibrium solution is obtained and the wholesale price contract is introduced to prompt the manufacturer to transmit the real cost information. The stochastic evolution process of recovery rate is described by using Ito process. The influence of parameters such as information hiding degree and recovery rate on the supply chain are analyzed numerical simulation. Studies have shown that the recovery rate reaches an stable value in a short period of time which above and below the stable value, because of the uncertainty fluctuates. External incentives improve recovery rates more than external constraints. Information concealment will reduce manufacturers" recycling rate and public profit and retailer"s profit. The wholesale price contract can effectively improve the profit of supply chain members, reduce the loss caused by decentralized decision-making and information asymmetry, and achieve a Pareto improvement.