Optimal Government Subsidy Decision and Its Impact on Sustainable Development of a Closed-Loop Supply Chain

Government subsidies generally play an important role in the sustainable operations management of a closed-loop supply chain (CLSC). This paper investigates optimal government subsidy decision and its influence on development CLSC, consisting one manufacturer, retailer, third-party collector, from economic, environmental, social perspectives. Based game analysis technology, different Stackelberg models among CLSC members are formulated to analyze decisions under power structures. By conducting theoretic comparative sensitivity analyses case study, effects structure explored total profit, environmental benefit, welfare. Results show that is good for which improves profit members, welfare improvement effect more prominent when have unequal bargaining power. Moreover, according growth proportion retailer collector benefit they power, otherwise, equally subsidy, beneficial environment compared with