Strategies Selection And Decisions Analysis Of “Trade-oldfor-remanufactured” Closed-loop Supply Chain

With the rapid development of economy,excessive consumption of resource and serious pollution of environment become important issues,which governments and enterprises urgently await to be solved.Compared with new products,remanufactured products can not only save material and cost,but also cut pollution drastically.It has been highly valued by governments,enterprises and scholars once the conception of remanufacturing closed-loop supply chain was proposed.However,low acceptance for remanufactured products and insufficient recovering quantity of old products are main courses for hindering the development of remanufacturing industry.The successful implementation of “Trade-Old-forRemanufactured”,hereinafter referred to as “TOR”,closed-loop supply chain can effectively promote the recovery of old products and sales of remanufactured products.A weak theoretical knowledge and practical experience,complex operation process and operation environment of “TOR” closed-loop supply chain have created great challenges for the efficient operation of enterprises' “TOR” strategies.Therefore,the strategies selection and decisions of “TOR” closed-loop supply chain under the three different environments of bilateral monopoly of manufacturer and retailer,duopoly competition of manufacturers,and competition of remanufacturer and manufacturer were discussed using game theory in this paper.The main contents and research findings are as follows:1.Strategies selection and decisions analysis of “TOR” under the environment of bilateral monopoly of manufacturer and retailer.Firstly,centralized and decentralized decision models of “TOR” under the environment of bilateral monopoly of manufacturer and retailer were developed.Secondly,strategies selection and decision results of two decision models were compared and analyzed.Finally,contract mechanism of supply chain was designed and numerical simulations were applied to validate the conclusions.This study shows that: The “TOR” strategies should be implemented by the manufacturer when consumers' receptivity for remanufactured products and product durability meet a certain condition,vice versa.Consumer environmental consciousness,advanced manufacturing technology and government subsidy policy can stimulate much more enterprises to implement “TOR” strategies.In addition,the revenue sharing contract can effectively relieve the dual marginal effect under decentralized decision-making.2.Strategies selection and decisions analysis of “TOR” under the environment of duopoly competition of manufacturers.Firstly,decision models of “TOR” under the environment of duopoly competition of manufacturers were developed.Secondly,strategies selection and decision results of competitive enterprises were compared and analyzed.Finally,numerical simulations were applied to validate the conclusions.This study shows that: Adopting “TOR” strategies could bring competitive advantage to manufacturer,who can get higher product market shares and profits.Remanufacturing capability is a critical factor on for competitive enterprises to determine “TOR” strategies and production decisions.The quantities of “TOR”,product market shares and profits obtained by competitive enterprises depend on itself and competitor's remanufacturing capability.Higher consumers' acceptance for remanufactured products and government subsidy for “TOR”,and lower “second hand” price could contribute to reduce the thresholds of remanufacturing capability of implementing “TOR” strategies and obtaining “TOR” quantities.Moreover,manufacturer can obtain a higher “TOR” quantities.3.Strategies selection and decisions analysis of “TOR” under the competitive environment between remanufacturer and manufacturer.Firstly,decision models of “TOR” under the competitive environment between remanufacturer and manufacturer were developed.Secondly,strategies selection and decision results of competitive enterprises were compared and analyzed.Finally,numerical simulations were applied to validate the conclusions.This study shows that: manufacturer will implement “TOR” strategies as long as his remanufacturing capability reaches the level of implementing “TOR” strategies,whether having remanufacturer competition or not.The competition of remanufacturer would reduce the quantities of “TOR” of manufacturer but stimulate more consumers to participate in “TOR” activity,and increase the total quantities of “TOR”,which has obvious promoting effect on consumers and the whole social welfare.Therefore,we should encourage remanufacturer to participate in implementing “TOR” strategies.Therefore,an enterprise can determine the optimal “TOR” stratergies selection and pricing,production decisions based on consumers' receptivity for remanufactured products and product durability,moreover,he/she can select strategies and decisions based on remanufacturing technology of himself/herself and his/her competitors.In addition,factors such as consumers' receptivity for remanufactured products and government subsidy for “TOR” have significant effect on enterprise's “TOR” stratergies selection and decisions.