Cooperation regarding technology development in a closed-loop supply chain
Cheng-Han Wu and
European Journal of Operational Research, 2018, vol. 267, issue 2, 523-539
Remanufacturing is the process by which used products are recovered and rebuilt to meet like-new quality conditions. The quality level of the original equipment manufacturer (OEM) affects not only OEM production costs but also the recovery costs of the independent remanufacturer (IR). Thus, many IRs aim to lower their costs by cooperating with OEMs through technology licensing or R&D joint venture mechanisms. In this study, we investigate competitive and cooperative interactions in a closed-loop supply chain that includes an OEM and an IR. First, the OEM determines its quality level; according to which the OEM and the IR then choose their respective production quantities. Thus, the OEM’s choice of quality level is essential to the subsequent quantity competition between the OEM and the IR. Moreover, two cooperative mechanisms between the OEM and the IR are developed: technology licensing with a licensing royalty and an R&D joint venture for technology co-development. We also investigate firm equilibrium decisions and profits in different models; consider the endogenous settings of cooperation schemes; and compare performance between the cooperative models. Furthermore, we extend our models to a dynamic setting to examine the effects of period and planning horizons on the equilibrium results. We provide insights that will help managers achieve better outcomes beyond the firm boundary.
Keywords: Supply chain management; Collaboration; Game theory; Remanufacturing; Quality (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:267:y:2018:i:2:p:523-539
Access Statistics for this article
European Journal of Operational Research is currently edited by Roman Slowinski, Jesus Artalejo, Jean-Charles. Billaut, Robert Dyson and Lorenzo Peccati
More articles in European Journal of Operational Research from Elsevier
Series data maintained by Dana Niculescu ().