Authorization Remanufacturing Equilibrium Model Considering New Product Quality

In this rapidly changing era,accompanied by not only the progress of science and technology,productivity improvement,economic prosperity,environmental pollution and resource shortage,etc.,are becoming increasingly serious.Therefore,facing this situation,while taking into account economic development,we should not forget to rationally use resources and protect the environment.And came up with the remanufacturing industry good alleviate this situation,there are three main forms of remanufacturing mode,this paper applies only to the authorization of the remanufacturing pattern carries on the discussion and research,authorized remanufacturing which original manufacturers(OEM)will remanufacturing business license to third party manufacturers(3PR)to produce again,only bill you for authorization,and products of the production,and marketing,all by 3PR responsible for again.Authorized remanufacturing not only makes it unnecessary for OEM to open new business for reproduce sales,but also enables OEM to better focus on the development of new products,and makes better use of resources,saving resources.Among them,the quality of new products not only plays a key role in the sales of new products,but also relates to the quality and sales of remanufactured products.Therefore,while exploring the authorized remanufacturing model,this paper also considers the quality of new products.Firstly,a basic authorization remanufacturing equilibrium model is established.Secondly,considering the influence of new product quality on authorized remanufacturing,the authorized remanufacturing model considering new product quality is established.In this paper,a closed-loop supply chain network composed of multiple OEM,retailers,3PR and consumer markets is studied,and the optimal solution of supply chain equilibrium network is solved by using variational inequality.The calculation example mainly analyzes the effect of the utilization rate of recycled waste products and the price discount coefficient of consumer based on new products on the balance of supply chain network and the profit of decision-makers,and makes a simple comparison between self-remanufacturing and authorized remanufacturing.The results show that:(1)With the improvement of the quality level of new products,consumers have a higher degree of recognition for the original products and their remanufactured products,which is conducive to the profit growth of all members of the closed-loop supply chain.However,the impact of the quality level of new products on OEM profit is higher than that of other members of the closed-loop supply chain.(2)Without considering the quality level of new products,the increase in the utilization rate of recycled waste products will stimulate the profit growth of OEM and 3PR,but will slightly inhibit the profit growth of retailers and aggravate environmental problems.Considering the quality level of new products,the impact of the utilization rate of waste products on OEM and retailers can be ignored,while for3 PR,the higher the utilization rate of waste products,the higher the profit for itself.(3)When the quality level of the new product is not considered,the lower the discount coefficient of the value of the new product to the re-product is,the lower the recognition degree of the consumers to the re-product is,the more favorable it is to OEM and retailer profits,while the 3PR profit shows an inverted U-shaped influence trend.Considering the quality level of new products,for OEM and retailers,the smaller the value discount coefficient of consumers based on new products to re-products is the better;for 3PR,the moderate value discount coefficient of consumers based on new products to re-products is the best.(4)The higher the quality level of the new product,the higher the recognition of the new product and its re-products by consumers,the greater the number of new products and re-products sold,and the greater the adverse impact on the environment.(5)Under the condition that OEM’s own remanufacturing capacity is insufficient,OEM can choose the authorized remanufacturing mode,which will make it get more income and less environmental pollution.