As the advances in technological development, many products’ costs could be reduced and the production speed is fast. Manufacturers producing too many goods in order to obtain high profit, but the result is unnecessary waste. To solve this problem, governments start the implementation of policies to promote the development of green supply chain, and make a series of measures to manufacturers, recyclers, and reproduction. Government to develop policy, to emphasize a series of subsidies in recycling logistics, often ignore the impact of the overall product market. In this study, confering the optimal subsidy policy to green supply chain members on competitive market.
The view of this study is starting from both sides of the manufacturers and the government point, and the goal is manufacturers gets maximize profits, ans achieve maximum social welfare purposes. government conducts different subsidy policies in response to different market conditions, and proportion of the distribution of subsidies. Research model for a two-stage game model, the two manufacturers have the same outputs , consider the situation of the government and party decision-making interaction in price competition. Depending on the game theory to find the optimal subsidy policy of the government for future reference the relevant subsidy policy. In addition to overall supply chain operations, will add market demand, new product and product evaluation factors, analyzing the impact of these factors that is the green supply chain profit, social welfare, product demand with the manufacturers and government''s consideration.
This study shows that the government subsidy policy except consider the amount of subsidies, the distribution ratio between the consumer and the manufacturer is more important to the overall green supply chain. The two firms in market competition may also be a single production of new products or re-products that reaching its own profit-maximizing situation. The government must observe the market between the two firms colluded to cause the social welfare thus reducing. Necessary to intervene and control the market.