Decision-Making in Remanufacturing Supply Chains: Game Theory Analysis of Recycling Models and Consumer Value Perception

Yingchun Cheng () and Jianhua Wang
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Yingchun Cheng: School of Business, Jiangnan University, Wuxi 21400, China
Jianhua Wang: School of Business, Jiangnan University, Wuxi 21400, China

Sustainability, 2024, vol. 16, issue 23, 1-20

Abstract: In view of the uncertainty regarding consumers’ perceived value of remanufactured products, a remanufacturing supply chain system with the manufacturer as the Stackelberg leader is constructed, in which the manufacturer faces three modes, namely the manufacturer recycling mode (M), the retailer recycling mode (R), and the entrusted third-party recycling mode (3P). The remanufacturing supply chain is analyzed using the game theory approach in these three recycling modes. Using game theory to analyze the optimal pricing and profits of each supply chain participant, we also discuss the impact of consumers’ perceived value uncertainty on the profits of each party under the different recycling modes, and we then explore the selection of recycling channels in the remanufacturing supply chain. The results show that when the perceived value uncertainty is at a medium or low level, retailers are responsible for recycling used products and producing remanufactured products, which brings higher profits to the supply chain system; when the perceived value uncertainty is high, the demand for remanufactured products in the market decreases, and the recycling revenue of remanufactured products is lower. Finally, the validity of the theoretical model is verified by a numerical simulation.

Keywords: remanufacturing supply chain; consumer perceived value; recycling channels; Stackelberg game (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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