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Chinese Journal of Management Science ›› 2015, Vol. 23 ›› Issue (6): 118-125.doi: 10.16381/j.cnki.issn1003-207x.201.06.015

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Decision-making and Performance Analysis of S-M Closed -Loop Supply Chain with Two-Echelon Remanufacturing

DING Bin, MA Hai-qing   

  1. School of Management, University of Science and Technology of China, Hefei 230026, China
  • Received:2013-01-22 Revised:2013-11-30 Online:2015-06-20 Published:2015-07-22

Abstract: Suppliers are decision-makers which can't be ignored in the studies of remanufacturing, because the suppliers' decision would be influenced by the manufacturers' product remanufacturing strategy, and the suppliers have a choice whether to participate the parts remanufacturing or not under supplier-dominated. In order to discuss the influence of two-echelon remanufacturing (product remanufacturing and parts remanufacturing) on the members' pricing decision and revenues, Stackelberg game theory is used to analyze two models according to whether the supplier is involved in the parts remanufacturing or not, then a comparative analysis on the pricing decisions and revenues is made. Finally, the following conclusions are drawn from this paper: with the implementation of remanufacturing strategy, the pricing decision of wholesale price relate to the demand situation, and the pricing decision of retail price relate to the recycling risk situation; The supplier should take an active part in the two-echelon remanufacturing strategy, because it is beneficial for the supplier to provide parts that can be used to remanufacture, and it will not only increase the both members' revenues but also reduce the both wholesale price and retail price if the supplier takes part in the activity of parts remanufacturing. Finally, the conclusions are demonstrated by a numerical example. The research results about the impacts of remanufacturing strategies on pricing decisions and revenues are enriched.

Key words: remanufacturing, two-echelon remanufacturing, S-M closed-loop supply chain, pricing decision

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