Research on Uncertain Remanufacturing Green Supply Chain Considering Incentive Compatibility

Purpose/Significance Under the uncertainty of market demand and quality of waste recycling, this paper studies the impact of government subsidies on the remanufacturing green supply chain under incentive compatibility theory, in order to find the optimal subsidy policy and product green degree level. Design/Methodology An uncertain remanufacturing supply chain system cost model considering government differential subsidies and product green degree is constructed. Fuzzy chance constraint method is used to solve the model’s uncertain factors, and particle swarm optimization algorithm and genetic algorithm are used to find the approximate optimal solution of the model. Conclusions/Findings The research shows that the enterprises in the remanufacturing green supply chain can formulate the optimal recovery strategy according to different demands. When there is no government subsidy, improving the green degree of the remanufacturing green supply chain will increase the cost, at this time, the enterprise’s willingness to protect the environment is low. When the government implements differential subsidies based on the incentive compatibility theory, the cost of improving the green degree of the remanufacturing green supply chain is relatively low, so as to effectively enhance the enterprise’s environmental protection will, achieve the goal compatibility between the government and the enterprise, and optimize the remanufacturing green supply chain.