Optimal deposit-return strategies for the recycling of spent electric automobile battery : manufacturer, retailer, or consumer

Abstract

There has been limited research on the supply chain performance of spent electric automobile battery recycling under various combinations of take-back models and deposit return strategies. This paper compares three deposit return strategies: manufacturer-targeted, retailer-targeted, and consumer-targeted approaches. Additionally, three take-back models—single-channel, mixed, and collaborative—are developed based on practical applications and evaluated in terms of their impact on supply chain profitability and collection rates. The results indicate that the optimal values of decision variables are influenced by the deposit return strategies, which, in turn, vary according to the take-back models. Furthermore, the deposit return scheme significantly enhances the collection rate, with manufacturer-targeted and consumer-targeted strategies outperforming the retailer-targeted approach in both supply chain profitability and collection rates. Notably, the consumer-targeted strategy results in the lowest retail price. Among the models, the collaborative take-back strategy demonstrates superior performance in both supply chain profitability and collection rates. Sensitivity analyses results reveal that higher subsidies and lower deposits result in greater total profits for the supply chain, while higher deposit and refund amounts lead to improved collection rates.