Research on the Pricing Model of the Dual-Channel Reverse Supply Chain Considering Service Level

The market competition for recycling used products is increasingly fierce. The traditional recycling enterprises have adjusted their strategies one after another, while retaining offline recycling channels, they have introduced online recycling mode and constructed a dual-channel reverse supply chain based on “Internet plus recycling Compared with offline channels, online recycling has advantages in privacy protection, logistics facilitation and recycling conversion rate. By improving the recycling service level of online channels, enterprises can improve customer satisfaction and obtain sustainable competitive advantages. However, on the one hand, the improvement of recycling service level represents the increase of enterprise service cost. On the other hand, the influence of consumers’ preference for online channels on enterprise decision-making has become a problem that enterprises have to face. All the above problems have an impact on the decision-making of recycling price and service level of recycling enterprises. However, so far, few scholars have studied the pricing of service level in dual-channel reverse supply chain. Therefore, in this paper, we set up Stackelberg model and solve the above problems under centralized and decentralized decision-making. The results show that whether under centralized or decentralized decision making, consumers’ preference for online channels can promote the total revenue of the supply chain system. In addition, the recycling center should lower the online recycling price and improve the recycling service level to maximize its own revenue according to the promotion of preference.