Research on Demand Forecasting Information Sharing Strategy of Closed-Loop Supply Chain considering Advertising Effect

Abstract

Based on the uncertain market demand, this paper studies the sharing strategy of each main body of the closed-loop supply chain for demand prediction information and introduces the variable of advertising effect into the model. Firstly, this paper constructs a manufacturer-led Stackelberg game model based on a two-level closed-loop supply chain. Secondly, the manufacturer advertising mode and the retailer advertising mode are set up, and the influence of information sharing is discussed in each advertising mode. Finally, the conclusion and the proposition are verified by example analysis. The results show that in terms of advertising, manufacturers prefer retailers to undertake, and retailers’ willingness is related to the mode of information sharing. In order to achieve a “win-win” situation by sharing information, certain conditions should be met. The advertising effect is helpful to increase product demand, retail price, advertising investment level, and profits of manufacturers and retailers and also promote recycling activities. However, the impact on wholesale price will vary with different advertising subjects.

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“…Additionally, it helps to promote recycling activities. In spite of this, the effect on wholesale pricing will be varied depending on the subject matter of the advertising [27]. Zaffar 2022 et.…”