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- Title
Competition and cooperation strategies in the supply chains with remanufacturing and refurbishing.
- Authors
Liu, Jing; Li, Kai; Zhao, Nenggui; Fu, Hong
- Abstract
Refurbishing and remanufacturing differ in that the former allows for restored products of lower quality than new ones. Motivated by the competition between the refurbished product and remanufactured product, our article examines the strategic choices for remanufacturing between the original equipment manufacturer (OEM) and the upstream manufacturer/rival third party. We develop a no-remanufacturing competition model and two cooperative remanufacturing models to characterize the problems. By analyzing the equilibrium market structure of each model, we try to explore who (manufacturer or third party) is the best remanufacturing partner when refurbished products appear. The results show that the OEM is always willing to cooperate with the manufacturer or the third party, but such cooperation will not always possible. In both cooperative models, the third party tends to prioritize improving the quality of refurbished products. Additionally, the manufacturer-remanufacturing model consistently demonstrates a lower environmental impact. Our study provides some important managerial implications that can be utilized as strategic guidance for the remanufacturing industry.
- Subjects
REMANUFACTURING; SUPPLY chains; ORIGINAL equipment manufacturers; MARKET equilibrium; MARKET design &; structure (Economics); WAREHOUSES
- Publication
Journal of Industrial & Management Optimization, 2023, Vol 19, Issue 12, p1
- ISSN
1547-5816
- Publication type
Article
- DOI
10.3934/jimo.2023049