Presenting a mathematical model based on game theory to maximize profit in closed loop supply chain

In the current era, the competition between organizations has also been transferred to the supply chain. The stability of the supply chain is a necessary and sufficient condition for the stability of companies. The most basic condition for the sustainability of an organization is its profitability. Therefore, the aim of this research is to present a mathematical model based on game theory in order to maximize profit in the closed loop supply chain. The main goal in the closed loop supply chain is to eliminate waste and optimize the consumption of products in such a way that the products are separated into two groups, new product and used product, and there is the possibility of returning used product and reproduced products in the consumption cycle. has it. However, all members of the chain benefit. But the fact is that it is not clear which factors can maximize the benefits of the closed loop supply chain members. For this purpose, in the current research, a mathematical model based on game theory is designed in which cooperation between upstream and downstream members occurs. Finally, it is clear what effective factors such as demand, returned products, recycled products and remanufactured products have on the profit of the chain members. In other words, how can the total profit of chain members and the share of individual members be increased and under what conditions this increase is achieved.
The general results from the analysis of this research show that demand is a factor that can increase the profit of all members of the chain, and returned products have a positive effect on the profit of all members, while recycled products and remanufactured products, in If it increases, it only increases the profit of the reproducer and recycler and reduces the profit of other members significantly at different levels.
In this research, the profitability of the closed loop supply chain has been investigated using game theory and the parameters of demand, returned products, recycled products and remanufactured products affecting the profitability of the closed loop supply chain have been simultaneously investigated. Therefore, the innovation of this research includes the simultaneous examination of demand, returned products, recycled products and remanufactured products affecting the profitability of the closed loop supply chain.