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

Xiaofeng Long,T. Shu,Shou Chen,Shouyang Wang,K. Lai,Yan Yang

Published 2017 in Sustainability

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.

PUBLICATION RECORD

  • Publication year

    2017

  • Venue

    Sustainability

  • Publication date

    2017-10-10

  • Fields of study

    Business, Economics, Environmental Science

  • Identifiers
    DOI 10.3390/SU9101818
  • External record

    Open on Semantic Scholar

  • Source metadata

    Semantic Scholar

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