The Decision of Scrap Reverse Logistics Operation Mode for Steel Enterprises Base on Evolutionary Game Theory

Yan Li, Fuyu Wang

Department of Industrial Engineering，Anhui University of technology, Maanshan, China, 243032

This paper discusses how steel enterprises choose the appropriate scrap reverse logistics operation mode from self-operation mode and the third party mode. To solve the problem, evolutionary game theory is used to research the game relation of cooperation between steel enterprises and the third -party enterprises. Firstly, the replication dynamic equations of both players are build based on payoff matrix. Secondly, the evolutionary stable strategies are acquired by stability analysis on evolution dynamic process of the game two players. Finally, combined with numerical simulation, some factors that impact stable strategy choice are analyzed such as initial state of system, extra income and risk cost of cooperation, invested initial cost and loss for cooperation. The conclusion provides theoretical reference for steel enterprises selecting scrap reverse logistics mode.