A four-echelon closed-loop supply chain: a manufacturer, a distributor, two retailers and a third-party recycler is discussed. By means of game theory, the coordination model with combined contracts is built. The coordination mechanism is discussed and simulated. The result shows that, with the government subsidies, the members of the supply chain can choose the best supply contract and achieve their prospective earnings. We also show that under the combined contracts model, the supply chain can reaches the optimal structure with high efficiency.
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