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Sustainability 2017, 9(10), 1818; doi:10.3390/su9101818

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

1
Business School, Hunan University, Changsha 410082, China
2
Information Science and Engineering College, Hunan International Economics University, Changsha 410205, China
3
Academy of Mathematics and System Science, Chinese Academy of Sciences, Beijing 100190, China
4
International Business School, Shaanxi Normal University, Xi’an 710062, China
*
Author to whom correspondence should be addressed.
Received: 29 August 2017 / Revised: 1 October 2017 / Accepted: 3 October 2017 / Published: 10 October 2017
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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. View Full-Text
Keywords: remanufacturing; recycling; production strategies; closed-loop supply chain remanufacturing; recycling; production strategies; closed-loop supply chain
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This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

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MDPI and ACS Style

Long, X.; Shu, T.; Chen, S.; Wang, S.; Lai, K.K.; Yang, Y. Strategy Analysis of Recycling and Remanufacturing by Remanufacturers in Closed-Loop Supply Chain. Sustainability 2017, 9, 1818.

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