Study on Costs Allocation Method for Reverse Logistic of Discarded Appliances

We develop a model that presents an alternative to waste appliances with firms that cooperate with each other under incomplete contracts, and setting up a costs allocation method for the reverse logistics of discarded appliances in this paper. We find that the total generated value is Pareto optimum if appliances firms cooperate and distribute the recycled costs of waste appliances following the Shapley value solution. Finally, an example is given to show the feasibility and availability of the developed method.