An Investigation of Subsidy Policies on Recycling and Remanufacturing System in Two-Echelon Supply Chain for Negative Binomial Distribution

This study investigates a two-stage production–inventory model with subsidy policies for paper cup recycling. The model includes remanufacturers, recyclers, and consumers, taking into account their preferences for different recycling channels. The negative binomial distribution of investment fund w...

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Main Authors: Yi-Ta Hsieh, Chiu-Yen Shen, Yung-Fu Huang, Ming-Wei Weng
Format: Article
Language:English
Published: MDPI AG 2025-04-01
Series:Mathematics
Subjects:
Online Access:https://www.mdpi.com/2227-7390/13/8/1303
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author Yi-Ta Hsieh
Chiu-Yen Shen
Yung-Fu Huang
Ming-Wei Weng
author_facet Yi-Ta Hsieh
Chiu-Yen Shen
Yung-Fu Huang
Ming-Wei Weng
author_sort Yi-Ta Hsieh
collection DOAJ
description This study investigates a two-stage production–inventory model with subsidy policies for paper cup recycling. The model includes remanufacturers, recyclers, and consumers, taking into account their preferences for different recycling channels. The negative binomial distribution of investment fund w is introduced and briefly studied. The influence of various subsidy strategies on the optimal pricing, profit, and recycling volume of the reverse supply chain is discussed. Numerical simulations show that increased consumer recycling preferences positively impact the recycling volume and profit. When subsidies are limited, subsidizing remanufacturers leads to higher recycling volumes, while subsidizing consumers results in higher profits at lower-to-middle subsidy levels. The findings suggest that policymakers can leverage different subsidy strategies to effectively manage the paper cup recycling supply chain and promote sustainability by incentivizing key stakeholders to participate in the recycling process. For example, subsidizing remanufacturers can increase the overall recycling volume by making it more financially viable for them to collect and process used cups, while subsidizing consumers can boost their participation and willingness to properly dispose of cups for recycling, leading to higher profits for the reverse supply chain.
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spelling doaj-art-2ea914a163dc44d09cfae8a8d9d3471b2025-08-20T02:28:32ZengMDPI AGMathematics2227-73902025-04-01138130310.3390/math13081303An Investigation of Subsidy Policies on Recycling and Remanufacturing System in Two-Echelon Supply Chain for Negative Binomial DistributionYi-Ta Hsieh0Chiu-Yen Shen1Yung-Fu Huang2Ming-Wei Weng3Department of Business Administration, Chaoyang University of Technology, Taichung 413310, TaiwanDepartment of Business Administration, Chaoyang University of Technology, Taichung 413310, TaiwanDepartment of Marketing and Logistics Management, Chaoyang University of Technology, Taichung 413310, TaiwanDepartment of Marketing and Logistics Management, Chaoyang University of Technology, Taichung 413310, TaiwanThis study investigates a two-stage production–inventory model with subsidy policies for paper cup recycling. The model includes remanufacturers, recyclers, and consumers, taking into account their preferences for different recycling channels. The negative binomial distribution of investment fund w is introduced and briefly studied. The influence of various subsidy strategies on the optimal pricing, profit, and recycling volume of the reverse supply chain is discussed. Numerical simulations show that increased consumer recycling preferences positively impact the recycling volume and profit. When subsidies are limited, subsidizing remanufacturers leads to higher recycling volumes, while subsidizing consumers results in higher profits at lower-to-middle subsidy levels. The findings suggest that policymakers can leverage different subsidy strategies to effectively manage the paper cup recycling supply chain and promote sustainability by incentivizing key stakeholders to participate in the recycling process. For example, subsidizing remanufacturers can increase the overall recycling volume by making it more financially viable for them to collect and process used cups, while subsidizing consumers can boost their participation and willingness to properly dispose of cups for recycling, leading to higher profits for the reverse supply chain.https://www.mdpi.com/2227-7390/13/8/1303recycling and remanufacturing systemsubsidy policiesreverse supply chainnegative binomial distribution
spellingShingle Yi-Ta Hsieh
Chiu-Yen Shen
Yung-Fu Huang
Ming-Wei Weng
An Investigation of Subsidy Policies on Recycling and Remanufacturing System in Two-Echelon Supply Chain for Negative Binomial Distribution
Mathematics
recycling and remanufacturing system
subsidy policies
reverse supply chain
negative binomial distribution
title An Investigation of Subsidy Policies on Recycling and Remanufacturing System in Two-Echelon Supply Chain for Negative Binomial Distribution
title_full An Investigation of Subsidy Policies on Recycling and Remanufacturing System in Two-Echelon Supply Chain for Negative Binomial Distribution
title_fullStr An Investigation of Subsidy Policies on Recycling and Remanufacturing System in Two-Echelon Supply Chain for Negative Binomial Distribution
title_full_unstemmed An Investigation of Subsidy Policies on Recycling and Remanufacturing System in Two-Echelon Supply Chain for Negative Binomial Distribution
title_short An Investigation of Subsidy Policies on Recycling and Remanufacturing System in Two-Echelon Supply Chain for Negative Binomial Distribution
title_sort investigation of subsidy policies on recycling and remanufacturing system in two echelon supply chain for negative binomial distribution
topic recycling and remanufacturing system
subsidy policies
reverse supply chain
negative binomial distribution
url https://www.mdpi.com/2227-7390/13/8/1303
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