The Strategic Decision-making And Scientific Development Of Remanufacturing Under The Framework Of Closed-loop Supply Chain

In recent years, the environmental pollution and resource shortage is getting worse with thedevelopment of science and the progress of human society. At this time, the concept of circulareconomy came into being, remanufacturing strategy which is to build circular has been an import-ant way to achieve the sustainable development of resources.Fully drawing on the results of previous studies, this paper firstly expounded the researchstatus at home and abroad on the remanufacturing closed-loop supply chain and the practicalapplication, also expounded the theory of the EPR system and the consumer’s utility, in order toprovide a theoretical basis for this article. Secondly, mathematical models of OEM remanufacture-d on his own as well as cooperated with third parties was established, we also used methods suchas game theory, nonlinear programming method in operational research to solve the models. Theresults showed optimal conditions in which OEM remanufactured himself or selected to operatewith third parties under the constraints of the EPR system, we analyzed the optimal productiondecisions in distributed and centralized decision-making mechanism. Furthermore, with theintroduction of the consumer utility function, the paper analyzed that how consumer behavioraffected OEM strategic decision. We also knew that the optimal cooperation mode with a thirdparty between them under the influence of consumers by solving the model, and determined theauthorization mechanisms for OEM. Finally, we analyzed the scientific development of the manu-facturing industry from a macro-level, as well as put forward reasonable proposals.The innovation of this paper was to build the model that OEM took EPR responsibility share-d with third parties, that is OEM remanufactured some products, while the remaining part wasentrusted to a third party, which making it both profit from remanufacturing activities, but also toenjoy the mechanism of licensing fees income, and we draw the conditions that OEM and thirdparty remanufacture commonly by solving models in two mechanisms. In addition, the consumerwas first introduced in this paper, we consider that consumers were strategic, we got the optimalremanufacturing cooperation strategy between OEM and third party in which case that consumerschoose to maximize their own utility function. And we established a two stage model, through thesolution of the model, we analyzed the conditions that OEM entrusted third party to remanufactureand influencing factors of license fees, thus provided a scientific basis for business decisions.