Strategy Analysis of Recycling and Remanufacturing by Remanufacturers in Closed-Loop Supply Chain

Xiaofeng Long, Tong Shu, Shou Chen, Shouyang Wang, Kin Keung Lai and Yan Yang
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Xiaofeng Long: Business School, Hunan University, Changsha 410082, China
Tong Shu: Business School, Hunan University, Changsha 410082, China
Shou Chen: Business School, Hunan University, Changsha 410082, China
Shouyang Wang: Academy of Mathematics and System Science, Chinese Academy of Sciences, Beijing 100190, China
Kin Keung Lai: International Business School, Shaanxi Normal University, Xi’an 710062, China
Yan Yang: Business School, Hunan University, Changsha 410082, China

Sustainability, 2017, vol. 9, issue 10, 1-29

Abstract: The paper investigates interactions in a two-period closed-loop supply chain consisting of a single manufacturer and a single remanufacturer. In the context of recycling and remanufacturing by the remanufacturer, the manufacturer and remanufacturer choose different production strategies. By comparing the costs, profits and equilibrium quantity of supply chain members in decentralized and centralized models, we focus on the conditions under which the remanufacturer chooses to sell the remanufactured products and compete with the manufacturer. Different cooperative strategies can affect closed-loop supply chain decision-making. The article analyzes the impact of each cost and recycling rate on the productions and profits of the manufacturer and remanufacturer, and compares the total profits of members between two models. The sensitivity analysis of the models shows that the centralized model can be an effective way of achieving greater efficiency in terms of the overall supply chain. This study provides insights into the remanufacturing theory, which might guide remanufacturing operations and strategies.

Keywords: remanufacturing; recycling; production strategies; closed-loop supply chain (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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