Propositions 1 and 2 provide optimal decision results for manufacturers, retailers, echelon utilizers, and third-party recyclers under two recycling models. Corollary 1 shows that the forward supply chain sales decision is independent of the choice of the reverse supply chain recycling mode for power battery manufacturers. Corollary 2 demonstrates that manufacturers’ profits increase with the residual rate of power batteries entering the disassembly stage and consumers’ preference for traceability information, but decrease with the investment cost coefficient for blockchain technology and the cost optimization coefficient for using recycled materials. Corollary 3 reveals that transfer prices of manufacturers and echelon utilizers are higher in Mode I compared to Mode II, due to diverse scenarios and low saturation of battery capacity in Mode II. The competitive intensity and consumers’ recycling sensitivity influence recycling prices in both modes.
These findings have important implications for the power battery recycling industry. Manufacturers can maximize profits by focusing on increasing residual rates and enhancing traceability for consumers. The cost optimization ability embedded in blockchain technology plays a crucial role in reducing production costs for manufacturers. Retailers and third-party recyclers must carefully consider pricing strategies to compete with echelon utilizers in the recycling market. Understanding the relationship between cost optimization, consumer preferences, and transfer prices is key to optimizing decision-making processes in the power battery recycling supply chain. These insights can help industry stakeholders navigate challenges and capitalize on opportunities in the evolving recycling landscape.
Source
Photo credit www.nature.com