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To improve the efficiency of recycling strategies in closed-loop supply chain, the closed-loop supply chain consisting of one manufacturer and one retailer and one third-party is studied. The cooperative recycling model (R3P mode) is designed whereby the retailer collects end-of-life products and the manufacturer cooperates with the third-party firm to handle used products. The two-stage Stackelberg game model of R3P mode is developed under uncertain demand and manufacturer leading. The optimal results are compared with the third-party firm collection model (3P mode). Through the analysis, it is shown that the manufacturer prefers R3P mode when the unit profit of recycling and reusing obsolete products is higher, and the R3P mode's performance is superior to the 3P mode when the third-party firm is a non-profit organization.

Research on Recycling Strategy of Retailer cooperating with the Third-party in Closed-loop Supply Chain