Price Decisions of Closed-loop Supply Chain with Dual Channel under IERs and Consumer Preference

With the acceleration of product renewal, enterprises begin to pay attention to the development and improvement of closed-loop supply chain. This paper focuses on the factors that the preference of consumers to choose channels and enterprises have IERs (Inspection Error Rates) in the classification of recycled used products. On this basis, this paper establishes a two-level closed-loop supply chain with dual channel model composed of a retailer and a manufacturer. Using Stackelberg game theory, this paper obtains the optimal pricing decision of supply chain members under the leadership of the manufacturer. And this paper analyzes the impact of consumer channel preference and recycled IERs on the profits of the manufacturer and the retailer through numerical examples.