Abstract: Based on the vertical differentiation between normal and remanufactured products in marketing and considering normal materials’ stochastic price, the "manufacturer-retailer" Stackelberg models are established. With normal materials’ price information updating, the coordiantion mechanism of two-stage retrieving-expense-sharing contract of remanufacturing supply chain is designed. It is proved that the two-stage adjustable contract is more efficient than the one-stage fixed contract. The effectiveness of the two-stage adjustable contract is then shown by means of the numerical analysis: the wider the fluctuating range of normal materials’ price, the more efficient the contract works; the coordinating mechanism in the paper can promote remanufacturing and achieve a win-win goal of both economic and social benefits.

Key words: adjustable contract, vertical differentiation, normal material’s stochastic price, remanufacturing, supply chain coordination